North America Battery Market Size, Share & Industry Analysis, By Type (Lithium-ion Battery, Lead-acid Battery, Nickel–cadmium Battery, Nickel-metal Hydride Battery, and Others), By State (Primary and Secondary), By Application (Electric Mobility, Energy Storage, Consumer Electronics, and Others), and Forecast, 2025-2032

The North America battery market size was worth USD 18.61 billion in 2024 and is estimated to grow from USD 19.83 billion in 2025 to USD 37.17 billion in 2032. The market is projected to grow at a CAGR of 9.39% during the forecast period.

The North American battery market continues to expand largely owing to the accelerating adoption of electric vehicles, the development of renewable energy projects with energy storage components, an increasing presence of government incentives and mandates for clean technology, and enhancements to battery performance linked to economies of scale and energy efficiency improvements with new technologies.

In July 2025, BHP signed a Memorandum of Understanding (MOU) with battery electrification pioneer FinDreams Battery Co., Ltd (FDB), a fully owned subsidiary of BYD Group. BHP and FDB will collectively explore powertrain battery solutions for heavy mining equipment and locomotives, along with their neighbouring flash-charging infrastructure, in addition to evaluating BYD commercial vehicles and light vehicles for use in mining applications to enable diesel displacement journey & clean energy transition. These key market trends are anticipated to boost battery demand in the coming years.

North America Battery Market Trends

Growing Demand for Electric Vehicles to Drive Market Share

The increasing demand for electric vehicles evs is fueling the North America battery market growth, given that EVs depend on high-capacity lithium-ion batteries and the transition to cleaner transportation requires manufacturers to produce more battery-powered models. Government incentives, stricter emission regulations, and the growing charging infrastructure are driving the adoption of EVs, which drives further demand for advanced and cost-effective batteries.

The rise in battery demand was primarily driven by growth in EV sales, resulting in demand for EV batteries exceeding 950 GWh - 25% greater than in 2023, when demand exceeded 750 GWh. Electric cars continue to be the main source of EV battery demand, at over 85%.

North America Battery Market Growth Factors

Development in Renewable Energy and Energy Storage to Boost Market Growth

Renewable energy outputs vary with sunlight and wind. Batteries allow extra energy to be stored during peak generation and to be discharged when needed, when there is a chance for supply to exceed demand, which can help stabilize the grid and rightsize long gaps in energy supply. To meet the substantial supply from large-scale renewable output, a battery system is essential to manage the grid.

In March 2025, Canadian Solar Inc. disclosed that e-STORAGE, part of the Company's majority-owned subsidiary CSI Solar Co., Ltd. (CSI Solar), has entered into Battery Supply Agreements and Long-Term Service Agreements (LTSA) for two large-scale battery energy storage projects in the U.S., developed by Aypa Power.

North America Battery Market Restraints

High Costs and Initial Investment Hurdles to Restrain Market Growth

The North America battery market encounters a major restraint with the capital costs associated with battery manufacturing, deployment, and associated infrastructure. Building large-scale manufacturing plants, deploying gigafactories, or deploying energy storage systems (ESS) or ancillary components all need a large upfront capital requirement, which can be a barrier for smaller intermediaries as the capex restraint slows the deployment of the project.

North America Battery Market Segmentation Analysis

By Type

Based on type, the market is divided into lithium-ion battery, lead-acid battery, nickel-cadmium battery, nickel-metal hydride, and others. Among these, the lithium-ion battery accounted for the highest North America battery market share and it is anticipated to show the fastest growth during the forecast period.

The dominance of lithium-ion battery in the North America battery market is due to its advantageous combination of high energy density, long cycle life, fast charging rates, and decreasing costs that make it ideal for a variety of applications ranging from electric vehicles to grid-scale energy storage. In July 2025, Panasonic Energy Co., Ltd., part of the Panasonic Group, officially opened a new factory producing cylindrical lithium-ion batteries for electric vehicles. This facility, situated in De Soto near Kansas City in the U.S., is now one of the largest automotive battery plants in North America.

Lead-acid battery demand is growing in the North America battery market primarily based on the cost, reliable technology, and even proper use for more specific backup and industrial applications, all the while competing with new chemistries such as lithium-ion.

By State

Based on state, the market is bifurcated into primary and secondary. Among these the secondary battery accounted for the highest market share and it is anticipated to grow at a faster rate during the forecast period. The increasing need for high-performance, long-life, but rechargeable energy storage in the transportation, consumer electronics, industrial applications, and renewable integration sectors fosters secondary batteries in North America’s growing battery market.

In July 2024, American Battery Technology Company (ABTC), operating in the critical sector of battery materials, has recently entered into a concrete contract for the wholesale purchase of recycled black mass inventory with a domestic strategic partner. This marks a significant move for ABTC in the efforts to commercialize its battery mining and recycling ancillary technologies. For ABTC, this marks a critical commercial milestone as the company advances in these technologies.

In the North American battery market, the primary battery segment is growing due to its long shelf life, reliability, and suitability for niche applications where rechargeable batteries are less practical.

By Application

Based on application, the market is segmented into electric mobility, energy storage, consumer electronics, and others. Among these, electric mobility accounted for the highest share and it is anticipated to show the fastest growth.

The Electric mobility is the largest segment of the battery market, as the rapid electrification of transport, combined with the diverse and immense fleet of internal combustion engine (ICE) vehicles, provides vast and consistent demand for batteries across electric and conventional vehicles. In April 2025, General Motors (GM) is going ahead to reshape battery production in the U.S. and make electric cars more competitive during the recent SAFE Summit in Washington, D.C.

The consumer electronics segment in the North America battery market is expanding due to the high penetration of portable devices and constant innovation surrounding gadgets that require long-lasting and efficient power.

By Country

Based on country, the market is segmented into the U.S. and Canada.

U.S.

The battery market in the U.S. is primarily influenced by rapid electrification in various industries, especially in transportation and the adoption of renewable energy. A significant factor driving this trend is the increasing push for electric vehicle (EV) adoption, along with government incentives and commitments from automakers. Furthermore, the growing need for energy storage systems arises from the necessity to stabilize the electrical grid, facilitate the integration of variable solar and wind energy, and enhance resilience against power outages.

Canada

In Canada, the battery market is influenced by the country's shift towards clean energy and its commitment to sustainable economic growth. With its rich natural resources, including essential minerals like nickel, cobalt, and lithium, Canada stands out as a key player in battery supply chains. Increasing demand for clean mobility options, supported by government subsidies and infrastructure improvements, is further driving market growth.

List of Key Companies in the North America Battery Market

Tesla is running large gigafactories in Nevada and Texas, producing both EVs and large-scale advanced lithium-ion batteries. Many automakers either use OEM batteries with proprietary battery technology in their electric vehicles (EVs), but Tesla designs its battery technology, collaborates with suppliers including Panasonic, and invests heavily in its advancements (e.g., 4680 battery cells) to give itself more control over cost and performance. The key players in the North American battery market include Tesla, Panasonic, LG Energy Solution, General Motors, and Envision AESC, driving growth in EV and energy storage systems through large-scale gigafactories and advanced lithium-ion technologies.

In February 2024, Tesla is looking to expand its Gigafactory in Nevada, but this expansion looks different from any previously planned expansions at the facility. Tesla will add production lines for LFP batteries and is taking the supply chain associated with LFP batteries back to the U.S. Tesla is going to take its partner and supplier, CATL, which is based in China, and purchase and of its idle equipment to build the line and then make the batteries with an initial capacity of 10GWh per year.

LIST OF KEY COMPANIES PROFILED

• CATL (China)
• LG Energy Solution (South Korea)
• EVE Energy Co., LTD (China)
• Toshiba Corporation (Japan)
• Exide Industries Ltd (India)
• Tesla, Inc. (U.S.)
• A123 Systems LLC (U.S.)
• EnerSys (U.S.)
• East Penn Manufacturing Co. (U.S.)
• Clarios (U.S.)

KEY INDUSTRY DEVELOPMENTS

• February 2025, Amprius Technologies, Inc., a leader in next-generation lithium-ion batteries with its Silicon Anode Platform, announced it has received a USD 15 million purchase order from an industry-leading Unmanned Aircraft System (“UAS”) manufacturer, for Amprius to manufacture its SiCoreTM cells for UAS applications. The volume purchase order follows successful field trials and qualification that resulted in Amprius’ battery being designed into the manufacturer’s fixed-wing UAS platform.
• December 2024: Stellantis and Zeta Energy have announced a partnership to develop lithium-sulfur EV batteries. The goal is to build a battery pack that is far lighter yet still has the same usable energy as current EV battery packs, infusing new energy range, handling, and performance benefits. This new technology has the potential to improve fast-charge speeds with a target of up to 50%, making charging an EV more convenient for today's consumers.

REPORT COVERAGE

The North America battery market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the growth in the battery market. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for the North America battery market.

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Report Scope & Segmentation