U.S. Lithium-Ion Battery Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Name: U.S. Lithium-Ion Battery Market Size, and Growth Report, 2032
Creator: P&S Intelligence
License: https://www.psmarketresearch.com/privacy-policy

This Report Provides In-Depth Analysis of the U.S. Lithium-Ion Battery Market Report Prepared by P&S Intelligence, Segmented by Type (Lithium-Nickle-Manganese-Cobalt, Lithium-Iron Phosphate, Lithium-Cobalt Oxide, Lithium-Manganese Oxide, Lithium-Nickle-Cobalt-Aluminum Oxide), Capacity (0-3000 mAh, 3001-10000 mAh, 10001-60000 mAh, More Than 60000 mAh), Application (Consumer Electronics, Automotive, Aerospace and Defense, Healthcare, Telecom, Industrial), and Geographical Outlook for the Period of 2019 to 2032

Report Code: 13405
Pages: 190

U.S. Lithium-Ion Battery Market Revenue Scope

View Global Report

Market Statistics

Study Period	2019 - 2032
2024 Market Size	USD 15.3 Billion
2025 Market Size	USD 18.0 Billion
2032 Forecast	USD 65.1 Billion
Growth Rate (CAGR)	20.1%
Largest Region	West
Fastest Growing Region	South
Nature of the Market	Fragmented
Largest Application Category	Automotive

Growth Forecast

U.S. Lithium-Ion Battery Market Growth Forecast

Key Players

U.S. Lithium-Ion Battery Market Companies

Key Report Highlights

Market Size and Forecast
Industry Trend
Regulatory Landscape
Demand Trend Analysis
Companies Recent Strategical Developments
Key Stakeholders
Voice of Industry Experts/KOLs
Future Opportunity

Explore the market potential with our data-driven report

U.S. Lithium-Ion Battery Market Future Outlook

The U.S. lithium-ion battery market valued at USD 15.3 billion in 2024, and it is expected to grow at a CAGR of 20.3% during 2025–2032, reaching USD 65.1 billion in 2032. This is the result of the increasing demand for electric vehicles, the rising importance of renewable energy storage, the growing sustainability concerns, and the burgeoning sale of consumer electronics, such as smartphones and laptops.

One of the major drivers of this market is the development and enlargement of the EV sector in the transition away from internal combustible engines. This shift is the consequence of the deteriorating climate due to the pollution emitted from gasoline- and diesel-powered vehicles. In 2022, countrywide emissions stood at 6.343 billion tCO₂e, placing the country second in the world, behind China. Hence, the government is promoting the manufacturing of electric vehicles and encouraging citizens to buy them by providing considerable subsidies.

Lithium-ion batteries are also used in consumer electronic products, such as smartphones, and laptops, which continue to increase its demand around the country. The rechargeable nature and long-lasting properties of these battery's energy storage systems make them perfect for use in phones and laptops. With people becoming more dependent on these devices, the demand for lithium-ion batteries will keep surging.

U.S. Lithium-Ion Battery Market Dynamics

Technological Advancements Are Major Trends

Traditional batteries are prone to catching fire, and they also take a lot of time to charge.
South 8 is developing LiGas batteries, using a liquified gas electrolyte reduces these risks, allowing for fast charging, and saving costs.
These new batteries are also becoming popular because of their low production cost, as they reduce the dependence on expensive metals, such as cobalt and nickel.
The expected life of a battery lithium-ion battery lithium-ion battery is 5 years or 2,000 charging cycles, but batteries can operate for even 3,000 cycles if utilized properly.

Increasing Adoption of EVs Is the Biggest Driver for the Market.

With the rising environmental awareness, consumers are opting for sustainable transportation solutions, as major EVs.
The IEA noted a 40% EV sales increase in the U.S. in 2023 from 2022.
As per an article by CNBC, EVs made up a record 20% of total automobile sales in the country in 2024.
As the demand for EVs rises, so does the need for Li-ion batteries, which are the core component.
The U.S. government provides substantial subsidies for buying electric vehicles instead of conventional combustible engine-powered vehicles.
The country aims to register 100% ZEV sales by 2035 and achieve net-zero emissions across sectors by 2045.

Renewable Energy Storage Systems Offer Lucrative Market Opportunities

As renewable energy solutions, such as solar and wind become more popular, the need for batteries to store electricity is increasing.
Lithium-ion batteries provide a solution for grid-scale energy storage systems to collect surplus renewable energy, which can be released in times of heightened electricity demand.
As per the Department of Energy, renewables held a 21.4% share in the country’s energy mix in 2023, generating 894 billion kilowatt-hours (kWh) of electricity.
By 2025, 75% more solar energy and 11% more wind power are expected to be produced in the U.S.
In 2024, the LCoE of the solar PV technology was USD 61 per Megawatt-hour (MWh), while for wind energy, it was USD 50 per MWh, compared to USD 118 per MWh for coal, USD 76 per MWh for combined-cycle gas plants, and USD 169 per MWh for gas peaking plants.

U.S. Lithium-Ion Battery Market Segmentation and Category Analysis

Type Analysis

The largest category is lithium−cobalt oxide (LCO) in the market. This is because LCO batteries are widely used in portable devices, such as smartphones and laptops, on account of their high energy density.

Lithium–iron phosphate is the fastest-growing category, with 21% CAGR, as they are widely used in the EV sector because of their longer cycles and low costs. Moreover, these batteries have lower fire risks, making them popular across industries.

Types analyzed in the report:

Lithium−Nickle−Manganese−Cobalt
Lithium-iron phosphate (Fastest-Growing Category)
Lithium−Cobalt Oxide (Largest Category)
Lithium−Manganese Oxide
Lithium−Nickle−Cobalt−Aluminum Oxide

Capacity Insights

More than 60,000 mAh is the largest category with 45% share. As they are best for storing large amounts of energy, they are widely used in the EV sector. This enables longer driving distances, more power, and higher speeds, the lack of which has prevented EVs from realizing their complete potential over ICE vehicles. Additionally, are used in grid-scale solar and wind systems plants to store excess energy. By releasing this energy when the demand for electricity rises, the grid can be stabilized, and power cuts due to overloading prevented.

The fastest-growing category, with 23% CAGR, is 10,001–60000 mAh as they are widely used as a power source in electric bikes and other medium-duty applications, such as drones and battery-powered tools. They are smaller in size and offer a balance between capacity and portability.

U.S. Lithium-Ion Battery Market Segmentation Analysis

Capacity levels studied in the report:

0−3,000 mAh
3,001−10,000 mAh
10,001−60,000 mAh (Fastest-Growing Category)
More than 60,000 mAh (Largest Category)

Application Analyses

The automotive category is the largest and fastest-growing category with 40% share in 2024 and 24% CAGR in the forecast period, respectively. This is because of the increasing adoption of electric vehicles under the influence of government incentives, tightening environmental regulations, and surging fuel rates. Automobile companies are boosting their EV manufacturing operations to meet this rising demand. Moreover, researchers are developing better battery technologies that enhances energy capabilities, lowers expenses, and reduces charging times.

Applications analyzed in the report are:

Consumer Electronics
- Smartphones
- Uninterruptible power supply Systems
- Laptops
- Others
Automotive (Largest and Fastest-Growing Category)
- Battery electric vehicle
- Plug-in hybrid electric vehicle
- Hybrid electric vehicle
Aerospace and Defense
Healthcare
Telecom
Industrial
Others

Drive strategic growth with comprehensive market analysis

U.S. Lithium-Ion Battery Market Geographical Analysis

The West is the largest region with 45% share because of the huge investments to boost the production of electric vehicles, especially in California. The government is also providing for both the production of batteries and the purchase of electric vehicles.

The South is the fastest-growing region, with 25% CAGR, because of the increasing integration of battery storage with the power grid and the increasing production of renewable electricity from solar and wind plants. The huge population also propels the demand for EVs, consumer electronics, and UPSs for commercial, residential, and industrial facilities.

Regions covered during the study:

Northeast
Midwest
West (Largest Category)
South (Fastest-Growing Category)

U.S. Lithium-Ion Battery Market Share Analysis

The market is fragmented, especially in the low- and mid-capacity segments.
The user base for these batteries is diverse, from smartphones to medical devices, driving the need for varying capacities.
Since low-capacity Li-ion batteries have been around for a long time, many companies develop and sell these.
The market for high-capacity batteries is less fragmented as manufacturing them requires high capital investments in infrastructure.
Moreover, these batteries are majorly used by utilities and automotive OEMs, which only trusted established companies.

U.S. Lithium-Ion Battery Companies:

Panasonic Corporation
LG Chem Ltd. (LG Energy Solution)
Samsung SDI Co., Ltd.
Tesla Inc.
Clarios
General Motors Holdings LLC
Saft Group S.A.
A123 Systems LLC
Hitachi Ltd.
Microvast Holdings, Inc.
Duracell
Automotive Energy Supply Corporation

U.S. Lithium-Ion Battery Market Developments

In December 2024, Samsung SDI received approval from the U.S. Department of Energy to construct two EV battery plants in Kokomo, Indiana, through a potential USD 7.54 billion loan backed by Stellantis. The project will produce batteries with a capacity of 67 GWh annually, which will support the production of 670,000 EVs.
In January 2024, Panasonic Holdings Corporation announced plans to build a net-zero battery plant in Kansas to support the U.S. electric vehicle market.