North America Lithium-Ion Battery Market Size - By Chemistry (LFP, LCO, LTO, NMC, NCA, LMO), Component (Cathode, Anode, Separators, Aluminum Foil, Copper Foil), Application (Industrial, Automotive, Consumer Electronics, Energy Storage) & Forecast, 2023 – 2032

North America Lithium-Ion Battery Market Size

North America Lithium-Ion Battery Market was valued at USD 15.7 billion in 2022 and is estimated to attain about 17.3% CAGR from 2023 to 2032. The increasing affordability of batteries, combined with growing concerns about environmental pollution caused by internal combustion engines, has led to a surge in the popularity of electric vehicles, which has had a positive impact on the business environment. Despite these, the government support through legislation aimed at bolstering domestic manufacturing capabilities has significantly bolstered the growth of the industry.
 

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Technological advancements in lithium-ion batteries have also made it possible to create smaller and more compact portable electronic devices. Furthermore, the availability of well-established distribution networks and the decreasing cost of lithium-ion batteries have played a pivotal role in encouraging the adoption of these products.
 

Lithium-ion batteries have emerged as one of the most prevalent choices for batteries worldwide. Their prominence can be ascribed to their impressive energy density, signifying that a lithium-ion cell of a particular weight and size can deliver substantially more energy than other batteries of equivalent dimensions. Progress in lithium-ion battery technology has facilitated the creation of more compact and lightweight portable electronic devices. Additionally, the presence of well-established distribution networks and the decreasing costs of lithium-ion batteries have had a favorable impact on the widespread acceptance of these products.
 

COVID-19 Impact

The global economy and the lithium-ion battery market in North America have experienced substantial effects from the COVID-19 pandemic. In the initial stages of the pandemic, numerous nations enforced lockdowns and imposed restrictions on travel and manufacturing, causing disruptions in the supply chain for lithium-ion batteries.
 

North America Lithium-Ion Battery Market Trends

The increasing demand for energy-efficient storage solutions and heightened safety considerations regarding battery longevity have driven the adoption of various lithium-ion battery chemistries. Lithium iron phosphate, lithium nickel manganese cobalt oxide, and lithium manganese oxide batteries are notable examples of these chemistries, and they have seen growing acceptance in various applications such as healthcare, military, power tools, and portable electronics. The implementation of supportive policies to encourage electric vehicle use, the realization of economies of scale, and advancements in battery manufacturing technology have substantially reduced the cost per kilowatt-hour (kWh) of batteries. Furthermore, increasing frequency of natural disasters associated with climate change have stimulated the demand for energy storage systems across the region.
 

North America Lithium-Ion Battery Market Analysis

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Based on chemistry, the LCO segment exceeded a market value of more than USD 2.2 billion in 2022, driven by changing preferences towards electric vehicles and the increasing consumer demand for electronic gadgets. LCO batteries are predominantly employed in a wide range of electronic devices, including laptops, mobile phones, cameras, small power tools, and various other applications. Factors such as rapid urbanization, population growth, particularly in developing nations, and the decreasing cost of batteries, will create a favorable business environment for the industry's expansion. Furthermore, the rising adoption of smart medical devices within the healthcare sector is expected to further enhance the market's growth prospects.
 

Based on component, the market is segmented as cathode, anode, separator, electrolyte, aluminum foil, copper foil, and others. Advancements in technology aimed at extending product life cycles, coupled with significant growth in industrial operations, have driven the expansion of the industry. This, in turn, has resulted in increased demand for various components critical to lithium-ion batteries, such as electrolytes, aluminum foil, copper foil, anodes, and cathodes. The global market for cathode materials has experienced a notable surge in demand due to declining raw material prices and the increasing use of NCA, LFP, and LMO batteries in various applications.
 

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Based on application, the energy storage application is set to grow at a CAGR of over 25.8% through 2032. These batteries are essential for providing a reliable and constant power supply and thus, becoming one of the most crucial options for integrating wind and solar into power grids across the region. The increasing demand for grid stability and electricity coupled with favorable government measures to provide uninterrupted power supply is anticipated to bolster the deployment of lithium-ion batteries. In addition, renewable energy integration measures implemented by various governments along with the increasing demand for off grid electricity will further stimulate the deployment of lithium-ion battery.
 

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The North America lithium-ion battery market across the U.S. held about 90% of the revenue share in 2022. The growth of electric vehicle adoption was a significant driver of the U.S. lithium-ion battery market. Major automakers were investing in electric vehicle production and battery manufacturing facilities in the U.S. The increasing use of renewable energy sources, such as solar and wind, led to a growing demand for energy storage solutions. Lithium-ion batteries were being deployed for grid-scale energy storage and residential applications to help balance supply and demand.
 

Federal and state governments provided incentives, tax credits, and grants to promote battery manufacturing and research. These policies aimed to strengthen the U.S. battery industry's competitiveness. Research and development efforts in the United States were focused on improving lithium-ion battery technology, safety, and energy density. Innovations were seen in areas such as solid-state batteries and advanced materials.
 

North America Lithium-Ion Battery Market Share

Tesla holds a significant position within the North American lithium-ion battery market, distinguished for its extensive expertise in the development and manufacturing of lithium-ion battery technologies. The company boasts a robust and well-established legacy deeply entrenched in the field of batteries and associated components. Over time, Tesla has provided battery solutions across a wide array of applications, encompassing various industrial, utility, and automotive sectors.
 

Some of the key market players operating across the North America lithium-ion battery industry are:

• Tesla
• General Electric
• Exide Technologies
• BYD Company Ltd.
• Energon
• Toshiba Corporation
• Samsung SDI Co., Ltd.
• Panasonic Corporation
• LG Chem
• Duracell, Inc.
• A123 Systems, LLC
• Hitachi Energy Ltd.
• Clarios
• Koninklijke Philips N.V
• Maxell, Ltd.

North America Lithium-Ion Battery Industry News

• In September 2022, Tesla began a processing plant for Lithium EV batteries in Texas. The organization would deal with crude metal material into a usable state for battery creation then, at that point, transport the lithium hydroxide to different Tesla battery fabricating manufacturing plants. Tesla's move is likewise logical an offered to broaden the stock of its lithium and battery creation.
   

This North America lithium-ion battery market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2019 to 2032, for the following segments:

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Market, By Phase

• LFP
• LCO
• LTO
• NMC
• NCA
• LMO

Market, By Connectivity

• Cathode
• Anode
• Separator
• Electrolyte
• Aluminum Foil
• Copper Foil
• Others

Market, By Application

• Industrial
• Military
• Heavy Industrial Equipment
• Medical
• Marine
• Others 
• Automotive
• HEV
• BEV
• Consumer Electronics
• Smartphones
• Laptops
• UPS Systems
• Smart Cameras
• Smart Watches
• Smart Glasses
• Smart Textiles
• Activity Trackers
• Others
• Energy Storage

The above information is provided for the following countries:

• U.S.
• Canada