North America Lithium-Ion Battery Market - Growth, Trends, And Forecasts (2023 - 2028)
The North American lithium-ion battery market is expected to register a CAGR of more than 25% during the forecast period. COVID-19 negatively impacted the market in 2020. Presently the market is likely to reach pre-pandemic levels.
New York, March 20, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "North America Lithium-Ion Battery Market - Growth, Trends, And Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06431223/?utm_source=GNW
The North American lithium-ion battery market is expected to register a CAGR of more than 25% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently the market is likely to reach pre-pandemic levels.
*Key Highlights*
Over the long term, increasing consumer demand for electric and hybrid vehicles, and icreasing demand from energy storage systems is expected to drive the market.
On the other hand, the demand-supply mismatch of raw materials is expected to hinder the market growth during the study period.
Nevertheless, the automotive batteries segment is expected to be one of the major applications for lithium-ion batteries, owing to the increased adoption of electric vehicles during the forecast period.
The United States is expected to dominate the market due to the government’s increasing investments in Electric vehicle segments in the forecast period, esulting in increased demand for battery-based energy storage systems, primarily led by lithium-ion batteries.
North America Lithium-ion Battery Market Trends
Automotive Batteries Expected to be the Fastest-growing Segment
The automotive sector is expected to be one of the major end-user segments for lithium-ion batteries over the coming years. The penetration of electric vehicles is anticipated to provide a massive impetus for the industry’s growth in North America.
A range of different vehicle types is available, featuring an increasing degree of hybridization and electrification. There are various types of vehicles, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles, and electric vehicles (EVs).
The adoption of electric vehicles is increasing at a high rate. The United States is already among the countries leading in global EV sales, along with other economies like Canada, which has already begun transforming its public transportation infrastructure to electric.
The United States is one of the region’s largest electric vehicle (EV) markets. According to the International Energy Agency (IEA), the total number of EV vehicle (EV cars) sales in the United States was about 6,30,000 units in 2021, which more than doubled compared to the previous year.
Moreover, the country is expected to witness an influx of several leading EV models, such as Audi’s e-tron and Q4 e-tron, BMW’s i4, iNext, and iX3, Ford’s F-150 electric, Mustang Mach-E, and several other models. Such developments offer excellent growth opportunities for global lithium-ion battery manufacturers. Hence, the growing EV manufacturing industry is expected to create demand for lithium-ion batteries.
In August 2022, Honda Motor Company announced the development of a lithium-ion battery plant for electric vehicles in the United States with Korean battery supplier LG Energy Solution Ltd with a USD 4.4 billion investment. As part of the partnership, the companies aim to produce approximately 40 GWh of batteries annually for use exclusively in North America’s Honda and Acura electric vehicles.s.
Therefore, falling lithium-ion battery prices and improving technology are expected to bring price-competitive electric vehicles to the market, creating demand for lithium-ion battery technologies in the near future.
The United States Expected to Dominate the Market
The United States is one of the pioneers in research and innovation in the global battery market. The region also remains one of the largest consumers of batteries, i.e., both primary and secondary battery types, owing to increased electric vehicle deployment, increased spending on consumer electronics, and increased consumer and manufacturing activities.
Until 2015, the United States accounted for the largest share of the global electric car stock. In 2016, China overcame the country with the largest electric car stock, accounting for about one-third of the worldwide total. As the gap between emissions from electric vehicles (EVs) and conventional cars widens, and in a bid to take advantage of future electricity supplies that include more renewable sources, electric vehicle sales are expected to increase in the United States during the forecast period significantly.
In 2021, the Department of Energy (DOE) announced a new set of policies aimed at regaining the market share from China, Japan, and South Korea in manufacturing the key components of advanced lithium-ion batteries.
The new policies mandate that projects receiving federal support, including from the USD 200 million in the agency’s 2022 budget to support battery technology, must manufacture their products within the United States. It is also applicable for the USD 17 billion issued by the lending authority under DOE’s Advanced Technology Vehicles Manufacturing Loan Program.
Further, the EV manufacturers in the country are undertaking further initiatives to cater to the rising demand in the country. Thirteen new battery cell giga-factories are expected to come online in the United States by 2025. All these giga-factories are being developed by various automobile manufacturers, like Ford Motor Company and General Motors Company, to support their electric vehicle manufacturing and sales.
Therefore, the country is likely to be the dominant player in the North American lithium-ion battery market, supported by increasing urbanization and consumer spending, which are expected to ramp up the demand for technically advanced devices and vehicles due to the benefits provided by the same. Consecutively, this is expected to boost the usage of batteries.
North America Lithium-ion Battery Market Competitor Analysis
The North American lithium-ion battery market is moderately fragmented. Some of the key players in the market (in no particular order) include Tesla Inc., LG Chem Ltd, Panasonic Corporation, Duracell Inc., and Samsung SDI Co. Ltd, among others.
*Additional Benefits:*
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06431223/?utm_source=GNW
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