North America Lithium-ion Battery Market Size, Share & Trends Analysis Report By Product (Lithium Cobalt Oxide, Lithium Iron Phosphate, Lithium Nickel Cobalt Aluminum Oxide), By Application, By Country, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The North America lithium-ion battery market size was estimated at USD 14.8 billion in 2023 and is expected to grow at a CAGR of 20.9% from 2024 to 2030. This growth is attributed to the increased sales of electric vehicles and consumer goods sales. Furthermore, increasing demand for lithium-ion batteries in smartphones is anticipated to drive the market due to their extended shelf life and heightened efficiency. In addition, the increased consumer awareness towards reducing carbon emissions and preference towards electric vehicles is expected to fuel the market growth.

Due to the increased demand for non-residential construction projects like schools, colleges, and hospitals over the coming years, the construction industry in the North America market is anticipated to experience significant growth. Furthermore, the U.S. is expected to stimulate the constriction of hospitals, and other healthcare units owning to the implementation of the Affordable Care Act in the country. Positive trends in demographics such as increasing population are expected to heighten the construction of more schools, industrial plants, colleges, and commercial buildings, resulting in the increased demand for UPS in the construction sector. In addition, due to the regulations of the Environment Protection Agency (EPA) on environmental risks and lead contagion have resulted in a declined demand for lead-acid batteries and are expected to increase the demand for lithium-ion batteries in automobiles.

Increased automobile manufacturing in North America is expected to drive the demand for Lithium-Ion batteries, subsequently driving the market growth. There was a slowdown in the demand for lithium-ion batteries due to the restricted production during the pandemic. However, the market is expected to grow in demand post-pandemic.

Market Concentration & Characteristics

The North America lithium-ion battery market is marked by a high level of innovation owing to the constant innovation in terms of charging speed, safety features, and energy density. Companies significantly invest in research and development to augment the efficiency and performance of the lithium-ion battery. For instance, in 2023, Duracell announced the launch of their campaign BitterIsBetter to buy up parents and guardians to replace to swap out the lithium batteries as a safer substitute.

Within the North America market, the level of merger and acquisition activities has been moderate. While there have been some significant collaborations and acquisitions aimed at enhancing market share and extending market capabilities. Furthermore, for instance, in 2023 LG Energy and Toyota joined hands intending to drive the growth of battery EVs in the U.S.

In addition, the impact of regulation in the market tends to be high as regulation plays a crucial role in the lithium-ion battery market. Laws and regulatory norms related to environmental standards, and safety standards influence market growth. Compliance with the regulations implemented by the regulatory authorities is crucial for the players to extend the product demand and overall market growth.

Manufacturers and companies in North America continuously strive to expand and launch new products to offer and cater to the needs of the customers. This includes producing batteries for grid storage systems, Electric vehicles, etc., resulting in a high level of product expansion within the market.

Product Insights

Lithium nickel manganese Cobalt (NMC) accounted for the largest market share of 31.32% in 2023.  This growth is attributed to the overall performance, outshining specific energy, and high power that is offered by NMC. Furthermore, due to its high energy density, long life and low cost, NMC is used in electric powertrains, power tools, and e-bikes. In addition, the rising consciousness of the environmental impact of NMC has led to the development of more eco-friendly and sustainable options. Further, NMC batteries have developed as one of the chosen batteries for application in EVs, resulting in NMC batteries experiencing significant growth in the forecast period. Moreover, based on products, the Industry also includes Lithium Cobalt Oxide (LCO), Lithium Iron Phosphate (LFP), Lithium Nickel Cobalt Aluminum Oxide (NCA), Lithium Manganese Oxide (LMO), and Lithium Titanate as well.

Lithium Iron Phosphate (LiFePO4) is expected to register a significant market share in 2023. One of the main factors driving the growth of LiFePO4 is its enhanced safety performance as compared to other lithium-ion batteries such as Lithium nickel cobalt aluminum oxide (NCA) and Lithium cobalt (LCO). The manufacturers of LiFePO4 are exploring ways to enhance the energy density of their batteries to sustain competitiveness with other lithium-ion chemistries.

Application Insights

The Automobile segment led the market and held the largest revenue share of 42.81% in 2023. This growth is attributed to the rising awareness among the public related to the benefits of battery-powered vehicles and increasing fuel processes. EVs and hybrid vehicles are anticipated to be the key consumers of lithium-ion batteries in the coming years. The increased concerns related to the environment such as the negative impact of carbon emission from fuel-operated vehicles have surged the R&D activities for EVs that are equipped with lithium-ion batteries, resulting in the growth of the market in the automobile sector. In the U.S., the number of new light-duty plug-in electric vehicles sold, encompassing both all-electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) almost doubled from 308,000 in 2020 to 608,000 in 2021. In 2021, EVs made up 73% of all plug-in electric vehicle sales. There was an 85% increase in EV sales from 2020 to 2021, while PHEV sales more than doubled, with a 138% increase compared to the previous year. The impressive growth of plug-in electric vehicle sales from 2020 to 2021 is noteworthy given that overall light-duty vehicle sales rose by just 3% in the same timeframe.

Furthermore, the consumer electronics segment accounted for a significant revenue share in 2023. This growth is attributed to consumer electronic products and portable devices equipped with portable batteries. Moreover, the most extensively used portable batteries are Nickel-metal-hydride and lithium-ion batteries due to their high energy density and long life. These factors are anticipated to contribute to the development of the consumer electronics application segment of the lithium-ion battery market over the forecast period.

Country Insights

U.S. Lithium-ion Battery Market Trends

The Lithium-ion battery market in the U.S. held the largest market share of 74.97% in 2023. This growth is attributed to the increase in sales of electric vehicles in the country due to favorable federal legislation and the presence of market players in the industry. One such legislation is the American Recovery and Reinvestment Act of 2009, which offers tax credits to consumers purchasing electric vehicles. In addition, the new corporate average fuel economy (CAFE) standard that controls the fuel efficacy of passenger cars and light commercial vehicles on U.S. roads has resulted in a surge in the adoption of electric vehicles in the country and driving market growth.

Canada Lithium-ion Battery Market Trends

The Canada Lithium-ion battery market accounted for a significant market share in 2023. This growth is attributed to Growing demand for vehicle charging infrastructure and installation of renewable energy systems. In addition, increasing demand for telecommunication towers together with constant innovations towards reducing the cost of lithium-ion batteries is anticipated to boost the growth. Moreover, increased installation in the solar industry has resulted in a sharp decline in equipment costs and is projected to continue over the forecast period. These aspects are expected to increase the market growth in the country over the forecast period.

Mexico Lithium-ion Battery Market Trends

The lithium-ion battery market in Mexico held a significant market share in 2023 owing to the increased auto production in the country, driving the growth of the lithium-ion battery market.  Investing in Mexico has become a noteworthy focus for the global auto industry. The country is anticipated to witness growth in the solar PV market, as consumers become more environmentally conscious and seek sustainable energy solutions. Technological advancements are also contributing to the growth of the market by increasing the electricity generation efficiency of modules and lowering installation costs through subsidies. These factors are expected to fuel the growth of the solar PV market in Mexico while reducing carbon emissions.

Key North America Lithium-ion Battery Company Insights

The North American lithium-ion battery market is moderately fragmented. Key players in the market include Tesla Inc., Panasonic Corporation, Duracell Inc., and A123 Systems LLC among others.

• Duracell Inc. is a subsidiary of Berkshire Hathaway, a manufacturer of alkaline batteries, rechargeable batteries, and specialty cells. The company was established in the early 1940s and has since become a widely recognized brand for reliable and long-lasting personal power products.

• A123 Systems LLC, which is a subsidiary of Wanxiang Group Holdings from China, specializes in developing and manufacturing energy storage systems and lithium iron phosphate batteries. The company's main focus is on batteries and their corresponding control systems. It holds a global patent for super Nano lithium iron phosphate and is the leader in high safety, high power, and long-lasting lithium iron phosphate battery technology worldwide.

Saft America; CANBAT Technologies Inc. and Corvus Energy are some other participants in the North America lithium-ion Battery market.

• CANBAT Technologies is a Canadian dealer of sealed lead-acid batteries, lithium iron, and lead-carbon batteries. The company offers a varied range of batteries and exports its products worldwide.

Recent Developments

• In July 2023, Saft America with Stellantis’ engineers revealed an innovative prototype of an energy storage battery that assimilates the inverter and charger functions. A more efficient battery is created by integrating the inverter and charger functions enhancing the battery electric vehicle range and making it more dependable and cost-effective. This collaborative research project is known as the Intelligent Battery Integrated System (IBIS). With IBIS, the electronic conversion boards that perform the power inverter and charger functions are straddling as close as possible to the lithium-ion battery cells. This refined control system allows the current of the electric motor to be directly produced from the battery.

• In December 2022, Panasonic Energy Co., Ltd., a Panasonic Group company, and Lucid Group, Inc. announced a multi-year agreement to supply batteries to Lucid's award-winning luxury electric vehicle, Lucid Air, the fastest-charging and longest-range EV on the market, as well as Lucid's upcoming Gravity SUV. The agreement is another milestone in Panasonic's plan to expand production of lithium-ion EV batteries beyond Japan and into the U.S. Production will come from both a facility in Japan and an expected future battery production facility in De Soto, Kansas.

North America Lithium-ion Battery Market Report Scope

North America Lithium-ion Battery Market Report Segmentation

This report forecasts revenue growth at regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the North America lithium-ion battery market report based on product, application, and country.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Lithium Cobalt Oxide (LCO)

  • Lithium Iron Phosphate (LiFePO4)

  • Lithium Nickel Cobalt Aluminum Oxide (NCA)

  • Lithium Manganese Oxide (LMO)

  • Lithium Titanate (LTO)

  • Lithium Nickel Manganese Cobalt (NMC)

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Consumer Electronics

  • Automobile

  • Energy Storage

  • Industrial

  • Medical Devices

• Country Outlook (Revenue, USD Million, 2018 - 2030)

  • U.S.

  • Canada

  • Mexico