North America Lithium-ion Battery Market Growth Analysis - Forecast Trends and Outlook (2024-2032)

North America Lithium-ion Battery Market Size

The North America lithium-ion battery market reached a value of more than USD 16.19 billion in 2023. The market is further expected to grow at a CAGR of 13.4% between 2024 and 2032, reaching a projected value of USD 50.20 billion by 2032.

North America Lithium-ion Battery Market Outlook

Lithium ions are used extensively in the electrochemistry of a lithium-ion battery, which is an inventive form of battery technology. After passing through the electrolyte and anode, they arrive at the cathode, where lithium ions recombine with their electrons to undergo electrical defusing. Moreover, during a discharge cycle, lithium atoms in the anode are both ionized and stripped of their electrons.

• The surging focus of governments on greenhouse gas emissions is likely to bolster the lithium-ion battery market across North America.

• The increase in adoption of electric vehicles due to the growing automotive industry in the region is further expected to increase the North America lithium-ion battery market revenue during the forecast period.

• The growing research and development by numerous companies to create safer and durable lithium-ion batteries is further influencing the market demand globally and regionally.

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Lithium-ion Battery Industry Outlook

The International Energy Agency (IEA) projects that between 2022 and 2030, the capacity of the world's lithium-ion battery manufacturing industry will rise dramatically. With China accounting for the major share at roughly 1.1 TWh, the overall manufacturing capacity in 2022 was estimated to be 1.5 TWh. Europe and the United States each made smaller contributions, and the rest of the world as a whole made very little.

The total manufacturing capacity is anticipated to increase by over 100% by 2025, amounting to around 4 TWh. China's 3 TWh of capacity will allow it to maintain its dominance. It is anticipated that the capacity of the United States and Europe will rise to roughly 0.5 TWh and 0.4 TWh, respectively, while the rest of the world would experience modest development.

Global production capacity for lithium-ion batteries is expected to almost triple from 2025 levels by 2030, reaching 7 TWh. China's 5 TWh of capacity will allow it to keep its position as the leader. Both Europe and the United States will greatly increase their capabilities to roughly 1 TWh apiece. The remaining capacity will be contributed to by the rest of the world, demonstrating a global increase in battery production capacities.

Recent Developments

Battery Demand by Mode (2016-2022)

• Light Duty Vehicles (LDVs): Exponential growth, surpassing 500 GWh/year in 2022.

• Buses: Consistent growth, notable share increase in 2022.

• Other Modes: Steady increase in various applications over the years.

Battery Demand by Region (2016-2022)

• China: Highest global battery demand, driven by EVs and renewable energy investments.

• Europe: Significant growth from 2020, driven by emission regulations and EV adoption.

• United States: Steady increase with a significant rise in 2021 and 2022, influenced by government policies and incentives.

Key Supply Chain Factors Propelling the North America Lithium-ion Battery Market Growth

• Stable supply of lithium, cobalt, nickel, and graphite is crucial; dependence on imports from unstable regions can affect reliability.

• Increase local sourcing to reduce import dependency and enhance supply chain resilience.

• Expand capacity within North America to meet EV and renewable energy demand.

• Implement advanced technologies and automation to improve efficiency and reduce costs.

• Efficient networks ensure timely delivery of raw materials and finished batteries.

• Adhere to regulations to avoid legal and operational disruptions.

• Diversify sources to mitigate geopolitical risks and bottlenecks.

• Incorporate ethical sourcing and recycling programs to reduce environmental impact.

• Navigate policies and tariffs affecting cost and availability of imports.

• Build strong supplier relationships for reliable supply and innovation collaboration.

• Balance supply and demand to minimize storage costs and avoid shortages.

Market Competition in the North America Lithium-ion Battery Market

• Market is dominated by large multinationals like Tesla, Panasonic, LG Chem, and Samsung SDI.

• New entrants and regional manufacturers drive innovation and competitive pricing.

• Continuous R&D investment in next-gen battery technologies like solid-state batteries.

• Larger companies benefit from economies of scale, reducing costs and offering competitive prices.

• Advanced features like longer battery life, faster charging, and enhanced safety differentiate products.

• Intense price competition from Asian manufacturers pressures North American companies.

• Efficient supply chain management, including local sourcing and streamlined logistics.

• Compliance with environmental and safety regulations offers a competitive edge.

• Focus on sustainable and ethical sourcing of raw materials, recycling, and waste reduction.

• Growing demand from EV market, renewable energy storage, and consumer electronics.

• Continuous innovation and high-quality standards are critical for gaining market share.

Factors Shaping the North America Lithium-ion Battery Market

• Advanced research and development capabilities are leading to innovations in battery performance and efficiency which will likely influence the lithium-ion battery demand forecast.

• High demand driven by the electric vehicle (EV) industry, consumer electronics, and renewable energy storage systems.

• Robust supply chain infrastructure with key manufacturers and suppliers located within the region are significantly affecting the North America lithium-ion battery market dynamics and trends.

• Favorable government policies and incentives promoting the adoption of lithium-ion batteries and clean energy solutions.

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What Threats Could Disrupt the Stability of North America Lithium-ion Battery Market?

• Vulnerability to geopolitical tensions, trade restrictions, and natural disasters may hamoer the growth of the North America lithium-ion battery market.

• Intense competition from alternative battery technologies and international manufacturers.

• Possible alterations to environmental laws and policies that have an effect on recycling and production.

• Fluctuations in raw material prices and global economic conditions.

What are the opportunities that are driving the North America lithium-ion battery market?

• Growing adoption of electric vehicles.

• Increased use for energy storage in renewable projects.

• Innovations in battery technology and energy density.

• Development of efficient recycling and reuse technologies.

Supportive Policies and Infrastructure Development are the key North America Lithium-ion Battery Industry Trends

• Supportive policies, tax incentives, and subsidies for clean energy and EVs are increasing the North America lithium-ion battery market value.

• Investments in charging infrastructure and renewable energy projects.

• Focus on battery recycling and eco-friendly manufacturing processes.

What Challenges are Impacting North America Lithium-ion Batteries Market?

• Significant costs associated with the production of lithium-ion batteries, including raw materials and manufacturing processes, which is impacting the lithium-ion battery demand growth.

• Issues related to the mining of raw materials (lithium, cobalt) and the environmental impact of battery disposal.

• Reliance on imported raw materials, particularly lithium and cobalt, from politically unstable regions.

• Potential risks associated with battery overheating, fires, and explosions, impacting consumer confidence and requiring stringent safety measures.

North America Lithium-ion Battery Industry Segmentation

Based on product type, the market can be segmented into lithium cobalt oxide, lithium iron phosphate, lithium nickel manganese cobalt, and lithium manganese oxide, among others. According to power capacity, the North America lithium-ion battery market can be divided into 0 to 3,000 mAh, 3,000 mAh to 10,000 mAh, 10,000 mAh to 60,000 mAh, and more than 60,000 mAh. On the basis of the end-use, the market is segmented into consumer electronics, electric vehicles, and energy storage, among others. Based on country, the market can be divided into the United States and Canada.

North America Lithium-ion Battery Market Share by Product Type

As per the North America lithium-ion battery industry analysis, the lithium cobalt oxide segment is likely to witness growth in the market owing to the rise in the demand for lithium cobalt oxide batteries in tablets, mobile phones, cameras, and laptops. This is due to its high safety level as well as high energy density which is likely to drive market growth in the coming years.

Competitive Landscape

Contemporary Amperex Technology Limited (CATL) is Chinese battery technology production company. It specialises in producing lithium-ion batteries for energy storage systems and electric vehicles along with battery management systems

Panasonic Corporation is a Japan-based company that produces, sells, services, and develops a variety of electronic and electric products. The company deals in four primary segments: eco-solutions, automotive and industrial systems, appliances, and connected solutions.

Tesla Inc. is a multinational company based in the United States that specialises in clean energy and automotives. It manufactures as well as designs battery energy storage ranging from home to grid-scale and electric vehicles, along with solar panels as well as solar roof tiles, among other associated services and products.

Other players in the North America lithium-ion battery market include LG Energy Solution, BYD Motors Inc., Samsung SDI Corporation Limited, Duracell Inc., Clarios, EnerSys, NEC Corporation, and American Battery Solutions, among others.

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North America Lithium-ion Battery Market Regional Insight

Geographically, the United States is expected to gain momentum in the North America lithium-ion battery market share due to the presence of major market players in the region. The increasing environmental concerns among people along with the rise in consumer electronics sales like laptops and mobiles is further expected to increase the lithium-ion battery market opportunities in the United States during the forecast period.

Key Highlights of the Report

North America Lithium-ion Battery Market Report Snapshots

North America Lithium-ion Battery Market Size

North America Lithium-ion Battery Market Growth

North America Lithium-ion Battery Companies

North America Lithium-ion Battery Market Regional Analysis