Report

The North America EV Battery Pack Market size is estimated at 15.76 billion USD in 2025, and is expected to reach 33.94 billion USD by 2029, growing at a CAGR of 21.13% during the forecast period (2025-2029).

Battery manufacturing plants are expected to fuel the growth of the North American electric vehicle industry


- From 2017 to 2023, there has been a significant increase in the production and adoption of electric vehicles in North America. In 2017, the total number of electric vehicles produced in North America was approximately 200,000, which increased to over 400,000 in 2022. This growth can be attributed to various factors, including government incentives, lower battery prices, and increased consumer awareness. Research and development efforts in the electric vehicle industry have also been increasing in recent years.
- The electric vehicle battery pack market in North America is experiencing significant growth, largely driven by government subsidies and incentive programs. In recent years, there has been a marked increase in the adoption of electric vehicles due to these programs, which aim to promote the use of environmentally friendly transportation. For instance, the US government has introduced tax credits of up to USD 7,500 for the purchase of electric vehicles, making them more affordable and accessible to a wider audience.
- Further, the development of battery manufacturing plants is critical to the growth of the EV market in North America. Currently, most EV batteries are manufactured in Asia, primarily in China and South Korea. However, there are plans to build more battery manufacturing plants in North America, which will help to reduce the region's reliance on imported batteries and support the growth of the local EV industry. According to a report by Bloomberg New Energy Finance, North America is expected to invest USD 360 billion in EV infrastructure by 2040 as the region seeks to reduce its carbon emissions and transition to cleaner transportation. Overall, the future of electric vehicles and battery packs in North America is promising.

Government support and investments driving electric vehicle adoption in the United States and Canada


- The North American electric vehicle (EV) battery pack market has witnessed robust growth in recent years, with both the United States and Canada seeing a surge in EV adoption. This uptick can be attributed to several factors, including government incentives, tightening emission regulations, growing environmental consciousness among consumers, and advancements in charging infrastructure.
- At various levels, governments across North America have been rolling out policies and incentives to spur EV adoption. These initiatives encompass tax credits, grants, rebates, and investments in charging infrastructure. Such support has bolstered consumer interest in EVs, thereby driving the demand for battery packs. Notably, major automakers and battery manufacturers are ramping up their production capacities for EV battery packs in the regional market. Tesla, for instance, operates its gigafactory in Nevada, United States, which is solely dedicated to battery production. Other industry giants like General Motors, Ford, and Volkswagen have also unveiled plans to establish their own domestic battery production facilities.
- Continued R&D endeavors in battery technology are focused on enhancing energy density, cost reduction, and extending the range of EVs. Innovations like solid-state batteries, rapid-charging capabilities, and prolonged battery life are poised to propel the market further. Additionally, the availability of key battery materials is a crucial factor. North America boasts substantial reserves of vital materials like lithium, nickel, and cobalt, which can bolster localized production and supply chain activities over the coming years.


North America EV Battery Pack Market Trends



The major players in the North American electric vehicle market include Tesla, Toyota, Ford, Hyundai, and Honda


- The North American electric vehicle market is majorly driven by the five major players, accounting for more than 70% of the market in 2023. These prominent players include Tesla, Toyota Group, Ford Group, Hyundai, and Honda. Tesla is the highest seller of electric vehicles in the various North American countries, accounting for around 33% of the market. The company focuses on strong innovation technologies and has strong strategic partnerships with various EV components (such as a battery) manufacturers. Being a US-based company, it has a strong customer base with great product and service offerings in major countries like the United States and Canada across North America.
- Toyota Group is the second largest seller of electric vehicles, accounting for around 30.8% market share across North America. The company has a strong supply chain and distribution network. Toyota has a reliable brand image among its customers. It ranks third in EV sales across various countries in North America. Ford Group acquired it with around 9.9% of the market share. The company has a large customer base in North American countries due to its strong brand image and diverse offerings.
- Hyundai is the fourth largest player, acquiring around 5.48% of the market share in EV sales across North America. The company has a strong production and supply chain network, with wide innovative and diverse products offered for various types of customers looking from reasonable to premium pricing. The fifth-largest player operating in the EV market is Honda, maintaining its market share at around 5.22%. Some of the other players selling EVS in North America include Jeep, Chevrolet, BMW, and Volvo.


The United States was the largest market with huge EV demand and captured more than 60% of the battery pack market across the region in 2023


- In 2023, the demand for batteries surged as the number of electric vehicles steadily climbed across several North American countries. Many other brands and models are sold in the region, but the top five models in 2023, the Tesla Model Y, Tesla Model 3, Toyota Rav 4, Toyota Sienna, and Honda CRV, acquired a significant portion of the market. With 247,344 units sold in the United States in 2023, the Tesla Model Y maintained its top spot. The Model Y is very well-liked because of its long range, strong seating capacity, and huge luggage capacity.
- The Tesla Model 3 took second place with 215,500 sales in the United States in 2023. The rear-wheel drive and performance versions of the vehicle are available. Due to its strong performance characteristics, Model 3 is drawing customers. The Toyota Rav4 took third position in electric car sales, with sales of 149,938 in the United States and throughout North America. The vehicle has plug-in hybrid technology and several ADAS features, including Toyota Safety Sense.
- The Toyota Sienna has acquired fourth place in the electric vehicle models' sales, with 69,720 in the United States. The car comes with the option of a 2.5 l engine with a hybrid powertrain. Consumers with big families looking for seven-seater cars have positively responded to the Toyota Sienna. The fifth place was acquired by the Honda CRV, selling 69,720 units in 2023 in the United States. Other top-selling models include Toyota Highlander, Jeep Wrangler, Toyota Camry, Honda Accord, and Ford Mustang Mach-E.


North America EV Battery Pack Industry Overview

The North America EV Battery Pack Market is fairly consolidated, with the top five companies occupying 85.66%. The major players in this market are Contemporary Amperex Technology Co. Ltd. (CATL), Envision AESC Japan Co. Ltd., LG Energy Solution Ltd., Panasonic Holdings Corporation and SK Innovation Co. Ltd. (sorted alphabetically).

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