U.S. Battery Market Size, Share & 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 U.S. battery market size was worth USD 14.97 billion in 2024 and is estimated to grow from USD 16.04 billion in 2025 to USD 31.85 billion in 2032. The market is projected to grow at a CAGR of 10.30% during the forecast period.

The U.S. battery market is experiencing rapid growth due to increasing demand for clean energy, electric transportation, and grid reliability. The rise of renewable energy initiatives, particularly in solar and wind, is boosting the requirement for large-scale energy storage solutions to maintain power stability. Government programs, such as tax incentives outlined in the Inflation Reduction Act, are promoting investments in local battery manufacturing. The increase in electric vehicle usage and the transition to electrified public transit are contributing significantly to this demand.

The surge in battery share in the U.S. is largely driven by a rapid increase in electric vehicle (EV) adoption, with over 4.7 million plug-in vehicles currently on the road and 2023 sales hitting 1.4 million, representing a 9.1% market share. Since 2020, the charging infrastructure has more than doubled, with over 200,000 public and workplace chargers, attributed by annual growth rate of 25% in deployment. In addition, significant federal investment of USD 7.5 billion through the Infrastructure Investment and Jobs Act (IIJA) and additional tax credits from the Inflation Reduction Act (IRA) have led to an increase in the purchase of EVs and the expansion of charging networks, driving a notable growth & demand for batteries and components related to EVs.

U.S. Battery Market Trends

Increase in Battery Manufacturing Capacity Drives Battery Market Growth

In the U.S., the capacity for domestic battery manufacturing has increased twofold since 2022 as a result of tax incentives for producers, surpassing 200 GWh in 2024. Approximately 700 GWh of additional manufacturing capacity is currently being developed. About 40% of the existing capacity is managed or created by well-established battery manufacturers in close partnership with automotive companies. The U.S. has committed over USD 140 billion in public- and private-sector investments in battery and critical mineral supply chain capacity, manufacturing, and recycling since 2021.

In addition, rapid advancements in establishing domestic manufacturing capabilities for battery components have been slower, leading to a continued reliance on imports for the majority of anode and cathode demand. Demand for batteries in stationary applications has risen by over 60% annually in the past two years, creating a demand source beyond electric vehicles, although it is less significant in volume.

U.S. Battery Market Growth Factors

Rise in Renewable Energy Integration to Boost Market Growth

Renewable energy integration in the U.S. is accelerating, driving a parallel surge in battery demand for grid stability. According to the U.S. Energy Information Administration (EIA), renewable sources accounted for 23% of total U.S. electricity generation in 2022, led by wind (10%) and solar (4%). Solar is the fastest-growing, with over 40 GW of new capacity expected in 2024 alone, a record high. However, the variability of renewables necessitates large-scale storage solutions. Batteries help manage peak demand, provide backup during outages, and reduce reliance on fossil fuels, making them essential to achieving the U.S. target of 100% clean electricity by 2035.

• The U.S. added 8.7 GW (11.2 GWh) of battery storage capacity in 2023, nearly doubling the 2022 figure, and cumulative storage capacity is projected to exceed 30 GW by 2025.

U.S. Battery Market Restraints

High Costs & Supply Chain Disruptions to Limit Market Growth

One significant major restraint for the U.S. battery market growth is the elevated production costs owing to an increase in the cost of raw materials and complex manufacturing processes. The lithium ion batteries, which are significantly driving the market demand, depend substantially on essential minerals such as lithium, cobalt, nickel, and graphite, whose prices fluctuate due to restricted global availability and increasing demand from the electric vehicle and renewable energy industries. In addition, the supply chain issues, along with high input costs, hinder the affordability for end-users and impede the widespread adoption of electric vehicles evs and grid storage solutions.

• For instance, the price of lithium carbonate skyrocketed by over 400% from 2020 to 2022, leading to a notable rise in battery pack expenses. Furthermore, much of the processing of cathode and anode materials occurs in a limited number of countries, especially China, which introduces geopolitical and supply chain risks.

U.S. 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 U.S. battery market share, and it is anticipated to show the fastest growth during the forecast period. This growth is majorly attributed to the advancements in lithium-ion battery technology, which are swiftly enhancing their efficiency, affordability, and potential uses within the U.S. market. Growing emphasis on increasing energy density, with modern lithium-ion batteries achieving up to 300 Wh/kg, almost twice the capacity seen ten years ago, enables the electric vehicles to travel over 300–400 miles on a single charge. Also, the U.S. solid state batteries market is rapidly expanding, driven by federal funding and EV adoption, with commercialization expected to accelerate after 2025.

• For instance, the advancements in silicon-anode technology are expected to boost energy density by another 20–40%, while the integration of solid-state electrolytes promises improved safety, faster charging, and longer cycle life compared to conventional liquid electrolytes.

By State

Based on the 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 growth of secondary (rechargeable) batteries in the U.S. is being driven by the rapid adoption of consumer electronics, electric vehicles (EVs), and renewable energy integration. As of 2023, about 85% of the U.S. population owns smartphones, and millions of laptops and tablets depend on lithium-ion batteries, leading to consistent replacement needs.

• In 2024, the U.S. added 37.1 GWh of new battery storage, mostly in California and Texas (over 60% of total additions), driving massive procurement needs.

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.

In 2024, a historic 1.3 million electric vehicles were bought in the U.S., making up 8.1% of all new vehicle sales, a notable increase from 7.8% in 2023, which has led to a significant increase in battery production. When including hybrids, the overall share of “electrified” vehicles rose to 20% of new sales. In just December, electric vehicles represented 12% of light-duty vehicle sales, setting a new record with 154,000 EVs sold. This surge is driving an exponential increase in demand for lithium-ion batteries, as each EV needs a substantial battery pack (ranging from 40 kWh to over 100 kWh based on the model).

Consequently, the demand for batteries in the U.S. electric mobility sector has surged significantly, making EV adoption the key factor in the expansion of the country's battery market. Also, the U.S. Department of Energy has stated that the battery storage power capacity has more than doubled between 2020 and 2023, growing from 1,650 MW to over 16 GW. As of June 2025, about 19,716 plug in hybrid electric vehicles (PHEVs) were sold in the U.S. that month, out of 113,433 total plug-in vehicle sales. Thus, increased focus on clean energy transition has led to an increase in battery demand in recent years, which has positively impacted the battery supply chains.

List of Key Companies in U.S. Battery Market

LG Energy Solution and Panasonic are the prominent players in the U.S. Battery market. Trupanion is a dedicated battery player with policies that offer comprehensive coverage and features such as the VetDirect Pay option. LG Energy Solution is expanding its presence in the U.S. battery sector through significant investments and supply agreements. Its gigafactory in Arizona, which is expected to start operating in 2026, will contribute 53 GWh of annual capacity (with 36 GWh for electric vehicles and 17 GWh for energy storage systems).

Panasonic continues to be a key player in battery manufacturing in the U.S., with its facility in Nevada producing about 41 GWh annually of cylindrical lithium-ion cells for Tesla and other clients. In 2025, Panasonic inaugurated its second significant U.S. plant in Kansas (De Soto), a USD 4 billion gigafactory expected to add up to 32 GWh each year, raising the total U.S. production to approximately 73 GWh.

The other companies with a considerable presence in the market include Samsung SDI, SK Innovation, Exide, and other small & medium-sized market players. These companies are making strategic moves, such as expanding their battery manufacturing capacities, collaborating with automakers to boost annual production capacity, producing energy storage system battery packs, and others.

LIST OF KEY COMPANIES PROFILED

• Tesla, Inc. (U.S.)
• Panasonic (Japan)
• LG Energy Solution (South Korea)
• Samsung SDI (South Korea)
• SK Innovation (South Korea)
• A123 Systems LLC (U.S.)
• EnerSys (U.S.)
• East Penn Manufacturing Co. (U.S.)
• Clarios (U.S.)
• Toshiba Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS

• August 2025: LG Energy Solution has begun early mass production of lithium iron phosphate (LFP) batteries for energy storage systems at its Holland, Michigan, plant, aiming to enhance its presence in the U.S. market. As the first significant global battery manufacturer to launch a large-scale production of LFP batteries for ESS in the U.S., the company has established a competitive advantage by ensuring consistent supplies to local clients and providing on-site assistance.
• August 2025: Ford's partnership BlueOval SK has commenced production of electric vehicle batteries in the U.S. Kentucky Governor Andy Beshear hailed the BlueOval SK initiative as “the largest economic investment and employment announcement in Kentucky’s history.” The first EV battery has been produced at the Kentucky 1 facility to power the all-electric Ford F-150 Lightning.

REPORT COVERAGE

The U.S. 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 growing battery demand across various applications, battery penetration in major markets, and technological advancements. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for batteries.

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Report Scope & Segmentation