North America Lithium-ion Battery for Electric Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

North America Lithium-ion Battery for Electric Vehicle Market Analysis

The North America Lithium-ion Battery For Electric Vehicle Market size is estimated at USD 21.60 billion in 2025, and is expected to reach USD 59.80 billion by 2030, at a CAGR of 22.59% during the forecast period (2025-2030).

The North American electric vehicle battery landscape is experiencing unprecedented transformation through extensive infrastructure development and technological advancement. The United States has made significant strides in expanding its charging infrastructure network, with the Department of Transportation and Department of Energy implementing new standards to enhance charging reliability and affordability. According to the International Energy Agency, Canada's charging infrastructure witnessed remarkable growth, expanding from 20,900 stations in 2022 to 26,800 stations in 2023, while the United States increased its network from 128,000 to 183,000 stations during the same period. This rapid infrastructure expansion has been supported by substantial government initiatives, including the Bipartisan Infrastructure Law's USD 7.5 billion investment in creating a national network of 500,000 electric vehicle chargers.

Manufacturing capacity expansion has emerged as a defining trend in the North American market, with major industry players announcing significant investments throughout 2023 and 2024. Honda's landmark announcement in April 2024 of a USD 11 billion investment in Canada for an EV battery and vehicle assembly plant demonstrates the scale of manufacturing expansion. The facility aims to achieve an annual production capacity of 240,000 electric vehicles and 36 GWh of battery output by 2028. Similarly, LG Energy Solution's USD 5.5 billion investment in Arizona and Tesla's plans for a USD 5 billion gigafactory in Mexico highlight the region's growing importance as a global manufacturing hub for automotive battery production.

Technological innovation and research advancement are reshaping the industry's landscape, particularly in battery chemistry and design. In January 2024, Massachusetts Institute of Technology researchers unveiled a groundbreaking battery material design utilizing organic materials instead of traditional cobalt or nickel, promising more sustainable and cost-effective solutions for electric vehicles. This development coincides with industry-wide efforts to enhance battery performance, with companies achieving significant improvements in energy density, charging speeds, and overall efficiency. The industry has witnessed substantial progress in battery technology, as evidenced by the increasing range of electric vehicles, with more than 40 EV models now available with a range exceeding 200 miles.

Strategic partnerships and collaborations have become increasingly prevalent, fostering innovation and supply chain optimization across the region. In May 2024, Li-Cycle Holdings Corp. established a significant partnership with Daimler Truck North America for battery recycling, addressing the critical aspect of sustainability in the EV battery lifecycle. The collaboration aims to maximize battery lifespans and reduce scrap through comprehensive recycling initiatives. Additionally, major automotive manufacturers are forming joint ventures with battery producers, as exemplified by General Motors and Samsung SDI's USD 3 billion battery manufacturing plant announcement in Indiana, which aims to produce both prismatic and cylindrical lithium-ion battery pack cells with approximately 30 GW of capacity by 2026.

North America Lithium-ion Battery for Electric Vehicle Market Trends

Declining Lithium-ion Battery Prices

The continuous decline in lithium-ion battery for electric vehicles prices has emerged as a crucial driver for the North American electric vehicle market. According to BloombergNEF, following unprecedented price increases in 2022, battery prices have taken a significant downward turn, with the price of lithium-ion battery packs plummeting by 14% to reach USD 139/kWh in 2023. At the cell level, battery electric vehicle prices have become even more competitive, averaging just USD 89/kWh, with cells making up approximately 78% of the total pack price. This price reduction is primarily driven by technological advancements in battery chemistry, economies of scale from mass production, and substantial research and development investments, making electric vehicles increasingly affordable for consumers.

The declining battery costs are further supported by major investments in domestic manufacturing capacity across North America. For instance, in January 2024, KOREPlex announced plans to develop a lithium-ion battery for electric vehicles manufacturing plant in Arizona, backed by USD 850 million in federal loans, marking the first lithium-ion battery manufacturing facility wholly owned by a U.S. company. Similarly, in May 2024, China-based battery component manufacturer Green New Energy Materials announced a USD 140 million investment in a lithium-ion battery separator manufacturing facility in Denver, North Carolina. These investments, coupled with technological innovations such as MIT's development of cobalt-free lithium-ion batteries in January 2024, are expected to drive further cost reductions. The trend suggests that battery pack prices will continue to drop, with forecasts indicating a decline to USD 113/kWh by 2025 and a significant reduction to USD 80/kWh by 2030, making electric vehicles increasingly cost-competitive with traditional internal combustion engine vehicles.

Furthermore, the advancements in lithium-ion battery cathode and lithium-ion battery anode technologies are contributing to the reduction in costs and improvement in performance. The development of new lithium-ion battery electrolyte formulations is also playing a pivotal role in enhancing battery efficiency and lifespan. Additionally, the integration of advanced battery module designs is optimizing the overall energy density and safety of these batteries.

Segment Analysis: Cell Type

Prismatic Segment in North America Lithium-ion Battery for EV Market

The prismatic cell segment dominates the North American lithium battery cell market for electric vehicles, commanding approximately 56% of the total market share in 2024. This significant market position is attributed to prismatic cells' superior space utilization and structural integrity, making them particularly attractive for electric vehicle applications. Major automakers like General Motors, Ford, and BMW have shown a strong preference for prismatic cells in their EV models due to their efficient packaging capabilities and scalability. The segment's dominance is further reinforced by substantial investments in prismatic cell manufacturing facilities across North America, with companies like Samsung SDI and LG Energy Solution establishing dedicated production lines to meet the growing demand from automotive manufacturers.

Pouch Segment in North America Lithium-ion Battery for EV Market

The pouch cell segment is emerging as the fastest-growing segment in the North American lithium battery cell market for EVs, projected to grow at approximately 26% during 2024-2029. This remarkable growth is driven by the segment's technological advantages, including superior energy density and a flexible form factor that allows for optimal space utilization in electric vehicles. Major manufacturers are increasingly investing in pouch cell technology, with companies like LG Energy Solution and Toyota announcing significant partnerships for pouch-type battery production. The segment's growth is further accelerated by advancements in manufacturing techniques that have improved the safety and reliability of pouch cells, making them increasingly attractive for next-generation electric vehicles.

Remaining Segments in Cell Type

The cylindrical cell segment continues to play a vital role in the North American lithium battery cell market for EVs, offering unique advantages in thermal management and manufacturing standardization. These cells are particularly valued for their robust mechanical structure and proven reliability in high-performance applications. Major manufacturers like Tesla have historically favored cylindrical cells, leading to continued investment in this technology. The segment's established manufacturing processes and strong safety track record make it an important alternative to prismatic and pouch cells, particularly in applications where thermal management and structural integrity are paramount considerations.

Segment Analysis: Propulsion Type

Battery Electric Vehicles (BEV) Segment in North America Lithium-ion Battery Market for Electric Vehicles

The Battery Electric Vehicles (BEV) segment dominates the North American electric vehicle battery market for electric vehicles, commanding approximately 75% of the total market share in 2024. This significant market position is driven by increasing consumer adoption of fully electric vehicles, supported by government initiatives and expanding charging infrastructure across the region. Major automotive manufacturers are heavily investing in BEV production facilities and battery module manufacturing plants, particularly in the United States and Canada. The segment's growth is further bolstered by declining battery costs, improving battery technology, and increasing vehicle ranges. Companies like Tesla, General Motors, and Ford are leading the BEV market with their expanding electric vehicle portfolios, while new entrants and established manufacturers continue to announce new BEV models and production facilities across North America.

Plug-in Hybrid Electric Vehicles (PHEV) Segment in North America Lithium-ion Battery Market for Electric Vehicles

The Plug-in Hybrid Electric Vehicles (PHEV) segment is emerging as the fastest-growing segment in the North American electric vehicle battery market for electric vehicles, with a projected growth rate of approximately 26% from 2024 to 2029. This remarkable growth is attributed to PHEVs' unique position as a bridge technology between conventional vehicles and fully electric vehicles, offering consumers the flexibility of both electric and gasoline powertrains. The segment is witnessing increased investment from automotive manufacturers, with several new PHEV models being introduced to the market. Companies are focusing on developing advanced PHEV batteries with improved energy density and faster charging capabilities. The growth is further supported by government incentives and the increasing consumer preference for vehicles that offer both zero-emission capability for daily commutes and extended range for longer journeys.

Segment Analysis: Type

Four-Wheeler Segment in North America Lithium-ion Battery Market for Electric Vehicles

The four-wheeler segment, encompassing passenger cars, buses, light commercial vehicles, and SUVs, dominates the North American automotive battery market for electric vehicles, commanding approximately 96% of the total market share in 2024. This segment's prominence is driven by substantial investments from major automotive manufacturers in electric vehicle production and battery module manufacturing facilities across the region. The segment's growth is further bolstered by government initiatives and policies promoting electric vehicle adoption, such as the Inflation Reduction Act in the United States and similar supportive measures in Canada. The segment is also witnessing rapid technological advancements, with manufacturers focusing on developing high-capacity batteries with improved range and faster charging capabilities. The four-wheeler segment is expected to maintain its market leadership position, growing at approximately 23% annually from 2024 to 2029, driven by increasing consumer demand for electric vehicles and expanding charging infrastructure across North America.

Remaining Segments in Type Segmentation

The two-wheeler and three-wheeler segments represent emerging opportunities in the North American automotive battery market for electric vehicles. The two-wheeler segment, primarily dominated by e-bikes, is gaining traction in urban areas as a sustainable transportation solution, particularly benefiting from expanding bike-sharing initiatives and growing environmental consciousness among consumers. Various government incentives and subsidies across different states and provinces are supporting the adoption of electric two-wheelers. The three-wheeler segment, while currently having a smaller presence in the North American market compared to Asia, is gradually finding applications in last-mile delivery services and urban transit solutions. Both segments are witnessing technological improvements in battery efficiency and range, making them increasingly attractive for specific use cases in urban mobility and short-distance transportation.

North America Lithium-ion Battery For Electric Vehicle Market Geography Segment Analysis

Lithium-ion Battery Market for Electric Vehicles in the United States

The United States dominates the North American electric car battery market for electric vehicles, commanding approximately 84% of the total market share in 2024. The country's robust market position is reinforced by substantial investments in domestic automotive lithium-ion battery manufacturing capabilities, with thirteen new battery cell gigafactories expected to be operational by 2025. The government's commitment to the clean energy transition is evident through initiatives like the Inflation Reduction Act, which provides significant tax credits for EV charging infrastructure. The Department of Energy's recent allocation of USD 131 million for research and development in EV batteries demonstrates the country's focus on technological advancement. Major automotive manufacturers are actively expanding their presence, with companies like KOREPlex developing a USD 1 billion lithium-ion battery manufacturing plant in Arizona. The country's strategic focus on developing a domestic mineral supply chain and reducing dependence on imports further strengthens its market position. The implementation of stringent emission regulations and the government's goal of achieving 50% electric vehicle sales by 2030 continue to drive market growth.

Lithium-ion Battery Market for Electric Vehicles in Canada

Canada emerges as the most dynamic market in the region, projected to grow at approximately 26% annually from 2024 to 2029. The country's aggressive push towards electrification is supported by its rich mineral resources and strategic government initiatives. The Canadian government's commitment to achieving 100% zero-emission vehicle sales by 2035 has attracted significant investments from global manufacturers. The country's competitive advantage is enhanced by its Clean Energy Canada initiative, which estimates the potential creation of 250,000 direct and indirect jobs in the domestic battery supply chain by 2030. Major automotive players are establishing a significant presence, exemplified by Honda's massive USD 11 billion investment in EV battery and vehicle manufacturing facilities. The country's focus on developing a comprehensive EV ecosystem, including battery manufacturing and recycling capabilities, positions it favorably in the market. The government's support through various incentive programs and infrastructure development initiatives further accelerates market growth.

Lithium-ion Battery Market for Electric Vehicles in Mexico

Mexico is rapidly emerging as a significant player in the North American electric car battery market for electric vehicles, driven by its strategic geographical location and manufacturing capabilities. The country's ambitious target of producing 50% of light-duty vehicles as zero-emission vehicles by 2030 is attracting substantial investments from global manufacturers. The government's supportive policies, including import tax exemptions for electric vehicles and exemptions from emission control verifications, create a favorable environment for market growth. Major automotive manufacturers are establishing a significant manufacturing presence, with companies like BMW investing in battery manufacturing facilities adjacent to their assembly plants. The country's integration into the North American supply chain, coupled with its skilled workforce and cost-competitive manufacturing environment, makes it an attractive destination for EV battery production. The development of robust regulations and infrastructure for EV charging, particularly in urban centers like Mexico City, further supports market expansion.

Lithium-ion Battery Market for Electric Vehicles in Other Countries

The remaining North American territories demonstrate varying levels of development in their lithium-ion battery markets for electric vehicles. These regions are characterized by emerging opportunities and growing interest in EV adoption, though at a smaller scale compared to the major markets. The development of charging infrastructure, implementation of supportive policies, and increasing consumer awareness about environmental sustainability drive market growth in these areas. While these regions currently represent a smaller portion of the market, they show potential for future growth as EV adoption increases and supporting infrastructure develops. The integration of these regions into the broader North American EV ecosystem, particularly through cross-border initiatives and trade agreements, contributes to the overall market development.