
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 21.54 Billion |
Market Size (2030) | USD 92.25 Billion |
CAGR (2025 - 2030) | 33.77 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
North America Lithium-ion Battery Market Analysis
The North America Lithium-ion Battery Market size is estimated at USD 21.54 billion in 2025, and is expected to reach USD 92.25 billion by 2030, at a CAGR of 33.77% during the forecast period (2025-2030).
The North American lithium-ion battery industry is experiencing unprecedented growth driven by rapid electrification across multiple sectors. In 2023, the region demonstrated a strong commitment to electric mobility with 1,402,371 plug-in hybrid and electric vehicle (EV) sales, highlighting the accelerating transition toward sustainable transportation. Major automotive manufacturers are establishing significant production facilities, as evidenced by Honda's January 2024 announcement of a USD 13.83 billion investment in a new electric vehicle factory in Canada, which includes in-house battery cell production capabilities. This surge in manufacturing capacity is reshaping the industrial landscape and creating new economic opportunities across the region.
The energy storage sector is witnessing remarkable expansion, particularly in grid-scale applications. As of 2022, the United States achieved a significant milestone with 22,385.1 megawatt-hours of cumulative large-scale energy storage capacity, demonstrating the growing role of lithium-ion battery technology in grid stabilization and renewable energy integration. The sector received substantial support in 2023 when the U.S. Department of Energy announced a USD 3.5 billion investment from the Infrastructure Law to boost domestic production of advanced batteries and battery materials, highlighting the government's commitment to establishing a robust domestic supply chain.
The data center and telecommunications infrastructure continues to drive demand for reliable backup power solutions. The United States maintains its dominant position in the global data center market, accounting for approximately 57.3% of data centers worldwide as of 2023. This extensive infrastructure requires sophisticated battery technology solutions, particularly for uninterruptible power supply systems. The integration of 5G technology and the expansion of telecom networks are further accelerating the demand for energy storage solutions, with major telecommunications providers upgrading their infrastructure to support next-generation services.
The manufacturing landscape is undergoing significant transformation with multiple mega-projects announced across North America. In September 2023, Swedish battery manufacturer Northvolt announced a USD 5.2 billion investment in a gigafactory in Quebec, while Tesla received approval for its new Gigafactory in Mexico in December 2023. These developments are complemented by significant investments in research and development, particularly in areas such as battery recycling and advanced materials. The healthcare sector, which spent USD 4.5 trillion in the United States in 2022, is also driving demand for portable medical devices and backup power systems, further diversifying the application landscape for lithium-ion battery solutions.
North America Lithium-ion Battery Market Trends
Growing Electric Vehicle Adoption and Manufacturing
The rapid acceleration of electric vehicle adoption across North America has emerged as a primary driver for the lithium-ion battery market. According to the International Energy Agency, electric vehicle sales in the United States and Canada witnessed remarkable growth of over 54% between 2021 and 2022, indicating strong consumer acceptance and market penetration. This surge in EV adoption has prompted major automotive manufacturers to establish extensive battery pack manufacturing infrastructure. For instance, in October 2022, Honda announced a significant joint venture with LG Energy Solutions, investing $4.4 billion to establish a new battery cell manufacturing facility focused on producing "pouch type" batteries for Honda and Acura electric vehicles, with mass production scheduled to commence by the end of 2025.
The commitment of major automotive manufacturers to electrification has further strengthened this driver. General Motors has set ambitious targets to manufacture 30 EV models and establish a battery electric vehicle production capacity of 1 million units in North America by 2025, while Ford has declared its intention to achieve one-third of sales from fully electric vehicles by 2026, escalating to 50% by 2030. Supporting these initiatives, thirteen new battery cell gigafactories are expected to become operational in the United States by 2025, being developed by various automobile manufacturers including Ford Motor Company and General Motors Company. These manufacturing expansions are complemented by the technological advantages of lithium-ion battery technology, including superior energy density, fast recharge capability, and high discharge power, making them the most competitive option for both hybrid and fully electric vehicles.
Increasing Energy Storage Applications
The expanding deployment of energy storage systems has emerged as a significant driver for the lithium-ion battery market, particularly in grid-scale applications and renewable energy integration. As of 2022, the United States witnessed substantial growth in large-scale battery pack storage capacity, reaching approximately 22,385.1 megawatt-hours (MWh), representing an impressive 80% increase from the previous year. This growth is particularly evident in regions like California and Texas, where the California Independent System Operator (CAISO) maintained a 34% share of the total installed capacity with 7,561.3 MWh, while the Electric Reliability Council of Texas (ERCOT) contributed 7.5% with 1,684.4 MWh.
The implementation of supportive state-level policies and significant investments in energy storage infrastructure has further accelerated this driver. For instance, in June 2023, the United States Department of Energy's Advanced Materials and Manufacturing Technologies Office announced a $2 million investment for lithium-ion battery recycling and reuse programs through the ReCell Center at Argonne National Laboratory. Additionally, states like Nevada and New Jersey have adopted new policies and launched incentives for home and commercial energy storage systems, while New York has implemented an Energy Storage Deployment Program with specific procurement goals for 2030. These initiatives, coupled with the declining costs of lithium-ion battery technology and its advantages over alternative storage technologies, including minimal maintenance requirements, reliable cycle life, and high energy density, continue to drive market growth in the energy storage sector.
Technological Advancements in Battery Technology
Continuous innovations and technological breakthroughs in battery technology have emerged as a crucial driver for market expansion. In February 2023, NanoGraf achieved a significant breakthrough in silicon anode technology, positioned to enhance both the energy and power densities of lithium-ion battery systems. This advancement effectively addresses historical challenges associated with silicon anodes while maintaining seamless integration with existing lithium-ion battery manufacturing processes, ensuring scalability and minimal disruption to current production methods at the cell level. Such innovations are particularly significant as they enable improvements in battery performance without requiring complete overhauls of manufacturing infrastructure.
The evolution of battery cell design has also contributed significantly to market growth, particularly in the automotive sector. Prismatic cells have gained increasing popularity among electric vehicle battery manufacturers, offering significant advantages over traditional cylindrical cells. These prismatic cells, being 20 to 100 times larger than their cylindrical counterparts, can deliver more power and store greater energy within the same volume, leading to improved efficiency in electric vehicle applications. This technological progression is complemented by improvements in battery management systems, charging capabilities, and overall battery lifespan, making lithium-ion battery systems increasingly attractive for various applications. The focus on developing cobalt-free cathode materials and standardization of testing protocols further demonstrates the industry's commitment to continuous technological advancement and improvement in battery performance metrics.
Segment Analysis: Application
Automotive Segment in North America Lithium-ion Battery Market
The automotive segment has emerged as the dominant force in the North American lithium-ion battery market, commanding approximately 85% market share in 2024, equivalent to USD 13.69 billion. This substantial market position is driven by the rapid adoption of electric vehicle battery solutions across the region, supported by favorable government policies and increasing consumer awareness about sustainable transportation. The segment's growth is further bolstered by significant investments from major automotive manufacturers in battery pack manufacturing facilities across the United States, Canada, and Mexico. Additionally, this segment is experiencing the fastest growth trajectory with a projected growth rate of around 37% from 2024 to 2029, driven by ambitious electric vehicle adoption targets set by governments across North America. The expansion of charging infrastructure, declining battery costs, and increasing range of electric vehicles are further catalyzing the segment's growth. Major automotive manufacturers are establishing dedicated battery manufacturing facilities and forming strategic partnerships to secure their battery supply chains, indicating strong future growth potential.

Remaining Segments in North America Lithium-ion Battery Market
The consumer electronics battery segment continues to maintain a stable presence in the market, driven by the increasing adoption of smartphones, laptops, tablets, and other portable electronic devices. The industrial battery segment serves critical applications in telecom, UPS, and energy storage systems, playing a vital role in ensuring power reliability and grid stability. The segment is witnessing growing demand due to the expansion of data centers, telecom infrastructure, and renewable energy integration. Other applications, including power tools, defense, and medical devices, represent a smaller but significant portion of the market, with steady growth driven by technological advancements and increasing automation across various industries. These segments collectively contribute to the market's diversification and demonstrate the versatility of lithium-ion battery technology across different applications.
North America Lithium-ion Battery Market Geography Segment Analysis
Lithium-ion Battery Market in the United States
The United States dominates the North American lithium-ion battery market, commanding approximately 85% of the total market share in 2024. The country's leadership position is underpinned by robust government initiatives and substantial investments in domestic battery manufacturing capabilities. The Biden administration's commitment to having 50% of all new vehicle sales be electric by 2030 has catalyzed significant developments in the lithium-ion battery manufacturing ecosystem. The country has witnessed an unprecedented surge in battery cell gigafactory developments, with thirteen new facilities expected to come online by 2025. These manufacturing expansions are complemented by strategic investments in critical mineral supply chains and battery recycling infrastructure. The Department of Energy's Advanced Materials and Manufacturing Technologies Office (AMMTO) continues to drive innovation through various funding programs and research initiatives. The country's strong focus on energy storage systems and grid modernization further amplifies the demand for lithium-ion batteries across multiple applications.
Lithium-ion Battery Market in Mexico
Mexico is emerging as the fastest-growing market for lithium-ion batteries in North America, with a projected CAGR of approximately 41% from 2024 to 2029. The country's strategic geographical position and integration into the North American automotive supply chain have attracted significant investments from major battery manufacturing and automotive companies. The government's ambitious target of having electric vehicles account for half of all cars sold domestically by 2030 has created a strong foundation for market growth. The country is rapidly developing its battery manufacturing infrastructure, with several international companies establishing production facilities. The industrial sector's growing adoption of energy storage batteries solutions, coupled with increasing renewable energy integration, is creating diverse applications for lithium-ion batteries. Mexico's commitment to clean energy transition and industrial modernization continues to drive market expansion across various sectors.
Lithium-ion Battery Market in Canada
Canada has established itself as a crucial player in the North American lithium-ion battery ecosystem, leveraging its rich natural resources and advanced manufacturing capabilities. The country's comprehensive approach to developing a domestic battery supply chain encompasses everything from mineral extraction to cell manufacturing and recycling. Canadian authorities have implemented robust support mechanisms, including manufacturing tax credits and direct investments, to attract major battery manufacturing companies. The country's ambitious goal of achieving 100% zero-emission vehicle sales by 2035 has spurred significant investments in battery manufacturing infrastructure. The integration of renewable energy sources and the growing demand for grid-scale industrial battery systems have created additional market opportunities. Canada's strategic focus on developing a sustainable and technologically advanced battery industry continues to attract international partnerships and investments.
Lithium-ion Battery Market in Other Countries
The broader North American lithium-ion battery market encompasses various other territories and regions beyond the major markets. These areas are experiencing varying degrees of market development, influenced by local energy policies, industrial development, and renewable energy adoption rates. The integration of these markets into the larger North American supply chain creates opportunities for regional collaboration and technology transfer. Local initiatives focusing on grid modernization and power battery solutions are driving market growth in these regions. The increasing adoption of electric vehicles and renewable energy systems continues to create new opportunities for market expansion. These markets benefit from the technological advancements and infrastructure developments in the larger markets while developing their unique applications and use cases for lithium-ion batteries.
North America Lithium-ion Battery Industry Overview
Top Companies in North America Lithium-ion Battery Market
The North American lithium-ion battery market is characterized by intense innovation and strategic developments among key players, including Tesla, LG Energy Solution, Contemporary Amperex Technology (CATL), Panasonic, and Samsung SDI. Companies are focusing on developing advanced battery technologies with improved energy density, faster charging capabilities, and enhanced safety features to maintain their competitive edge. Operational agility is demonstrated through vertical integration efforts, with many players establishing control over their supply chains from raw material sourcing to final production. Strategic partnerships and collaborations, particularly between automotive manufacturers and battery producers, have become increasingly common to secure supply and develop specialized solutions. Geographic expansion through new manufacturing facilities and gigafactories across the United States and Canada reflects the industry's response to growing regional demand and government initiatives promoting domestic battery production.
Dynamic Market Structure Drives Industry Evolution
The North American lithium-ion battery market exhibits a mixed competitive structure with both global conglomerates and specialized battery manufacturers vying for market share. Global players leverage their extensive research capabilities, established supply chains, and financial resources to maintain dominant positions, while specialized firms carve out niches through focused innovation and customized solutions. The market shows moderate consolidation, with major players continuously strengthening their positions through strategic acquisitions and joint ventures, particularly in emerging technology segments and regional markets. The presence of Asian manufacturers, especially from South Korea, Japan, and China, has significantly influenced market dynamics, leading to increased competition and technological advancement.
Recent years have witnessed accelerated merger and acquisition activity, driven by the need to secure critical raw materials, expand manufacturing capacity, and acquire innovative technologies. Companies are increasingly pursuing vertical integration strategies, either through acquisitions or strategic partnerships, to gain greater control over the supply chain and reduce dependence on external suppliers. This trend is particularly evident in the electric vehicle segment, where automotive manufacturers are establishing dedicated battery cell production facilities through joint ventures with established battery manufacturers.
Innovation and Integration Key to Success
Success in the North American lithium-ion battery market increasingly depends on companies' ability to innovate while maintaining cost competitiveness and supply chain resilience. Incumbent players must focus on continuous technological advancement, particularly in areas such as solid-state batteries and advanced cathode materials, while simultaneously expanding production capacity to meet growing demand. Strategic partnerships with raw material suppliers and investment in recycling capabilities have become crucial for maintaining competitive advantage. The market also demands significant attention to sustainability and environmental compliance, with companies needing to demonstrate commitment to reducing carbon footprint and implementing circular economy principles.
For new entrants and smaller players, success lies in identifying and exploiting specific market niches while building strong partnerships across the value chain. The high concentration of end-users in sectors such as automotive and energy storage presents both opportunities and challenges, requiring focused strategies and long-term commitment to relationship building. Regulatory developments, particularly those related to domestic content requirements and environmental standards, continue to shape competitive dynamics. The risk of substitution from emerging battery technologies necessitates ongoing investment in research and development, while also creating opportunities for innovative companies to challenge established players through breakthrough technologies.
North America Lithium-ion Battery Market Leaders
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Panasonic Corporation
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Duracell Inc.
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Samsung SDI Co. Ltd
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LG Chem Ltd
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Tesla Inc.
- *Disclaimer: Major Players sorted in no particular order

North America Lithium-ion Battery Market News
- November 2023: The Office of the Assistant Secretary for Industrial Base Policy agreed with Albemarle Corporation to increase domestic mining and production of lithium to increase the manufacturing of lithium-ion batteries. The agreement, worth USD 90 million, will help support Albemarle's planned re-opening of their Kings Mountain, N.C. lithium mine. The development will increase domestic production of lithium for the nation's battery supply chain.
- November 2023: BASF, a global battery materials producer, agreed with SK On Co., Ltd., a global electric vehicle battery cell manufacturer, to explore collaboration opportunities in the global lithium-ion battery market, which is focused on North America and Asia-Pacific. As per the agreement, both companies will collaborate on their business and product development capabilities to develop industry-leading battery materials.
North America Lithium-ion Battery Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, till 2029
- 4.3 Global Lithium-ion Battery Price Trend Analysis, till 2029
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.1.1 Declining Lithium-Ion Battery Prices
- 4.6.1.2 Increasing Adoption Of Electric Vehicles
- 4.6.2 Restraints
- 4.6.2.1 Safety Concerns Related To Lithium-Ion Battery
- 4.7 Supply Chain Analysis
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4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitute Products and Services
- 4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Application
- 5.1.1 Consumer Electronics
- 5.1.2 Automotive
- 5.1.3 Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.))
- 5.1.4 Other Applications (Power Tools, Defense, Medical Devices, etc.)
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5.2 Geography Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}
- 5.2.1 United States
- 5.2.2 Canada
- 5.2.3 Rest of North America
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 BYD Company Ltd
- 6.3.2 Contemporary Amperex Technology Co. Limited
- 6.3.3 EnerSys
- 6.3.4 Duracell Inc.
- 6.3.5 Clarios (Formerly Johnson Controls International PLC)
- 6.3.6 LG Chem Ltd.
- 6.3.7 Panasonic Corporation
- 6.3.8 VARTA AG
- 6.3.9 Samsung SDI Co. Ltd.
- 6.3.10 Sony Corporation
- 6.3.11 Tesla Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Improvement In Efficiency And Maintenance Requirements
North America Lithium-ion Battery Industry Segmentation
A lithium-ion (Li-ion) battery is an advanced technology that uses lithium ions as a critical component of its electrochemistry. Li-ion batteries can use a number of different materials as electrodes. Lithium cobalt oxide (cathode) and graphite (anode) are the most common combinations.
The North American lithium-ion battery market is segmented by application and geography. It is segmented by application into consumer electronics, automotive, energy storage (UPS, renewables, and industrial), and other applications (power tools, defense, medical devices, etc.). The report also covers the market size and forecasts across major countries. It offers the market size and forecasts for the North American lithium-ion battery market in revenue (USD) for all the above segments.
Application | Consumer Electronics |
Automotive | |
Industrial Batteries (Motive, Stationary (Telecom, UPS, Energy Storage Systems (ESS), etc.)) | |
Other Applications (Power Tools, Defense, Medical Devices, etc.) | |
Geography Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)} | United States |
Canada | |
Rest of North America |
North America Lithium-ion Battery Market Research Faqs
How big is the North America Lithium-ion Battery Market?
The North America Lithium-ion Battery Market size is expected to reach USD 21.54 billion in 2025 and grow at a CAGR of 33.77% to reach USD 92.25 billion by 2030.
What is the current North America Lithium-ion Battery Market size?
In 2025, the North America Lithium-ion Battery Market size is expected to reach USD 21.54 billion.
Who are the key players in North America Lithium-ion Battery Market?
Panasonic Corporation, Duracell Inc., Samsung SDI Co. Ltd, LG Chem Ltd and Tesla Inc. are the major companies operating in the North America Lithium-ion Battery Market.
What years does this North America Lithium-ion Battery Market cover, and what was the market size in 2024?
In 2024, the North America Lithium-ion Battery Market size was estimated at USD 14.27 billion. The report covers the North America Lithium-ion Battery Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America Lithium-ion Battery Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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North America Lithium-ion Battery Market Research
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