U.S. Rechargeable Battery Market Poised For Strong Growth Through 2035, Driven By EV Adoption, Energy Storage Demand And Clean-Tech Investment
Dublin, Sept. 17, 2026 (GLOBE NEWSWIRE) -- "United States Rechargeable Battery Market Size and Share - Growth Analysis Report and Forecast Trends (2026-2035)" has been added to ResearchAndMarkets.com's offering.
United States Rechargeable Battery Market Forecast to Reach USD 68.0 Billion by 2035
The United States rechargeable battery market was valued at USD 28.0 billion in 2025 and is projected to reach USD 68.0 billion by 2035, expanding at a compound annual growth rate of 11.7%. Market growth is being driven by rising electric vehicle adoption, record investment in domestic battery manufacturing, rapid deployment of grid-scale battery energy storage systems, and sustained demand from consumer electronics and industrial applications.
Lithium-ion batteries account for approximately 75% of the US rechargeable battery market by value. Nickel manganese cobalt, nickel cobalt aluminum, and lithium iron phosphate chemistries serve electric vehicles, stationary energy storage, portable electronics, and industrial systems. Lead-acid batteries retain an estimated 15% market share, primarily across automotive starting, uninterruptible power supply, and backup power applications, while nickel-metal hydride batteries continue to support hybrid vehicle demand.
Electric Vehicle Battery Demand Accelerates
Electric vehicles represent the largest end-use segment, accounting for approximately 45% of total US rechargeable battery market value. US electric vehicle sales reached approximately 2.1 million units in 2023, compared with about 300,000 units in 2020. This expansion has substantially increased demand for battery cells, modules, packs, materials, and related manufacturing infrastructure.
Federal incentives are supporting continued market development. Consumer tax credits of up to USD 7,500 for qualifying electric vehicles encourage adoption while reinforcing North American assembly and domestic battery-content requirements. Tesla, Ford, General Motors, Rivian, and other manufacturers are expanding US production capacity, strengthening demand for localized battery supply chains.
Lithium iron phosphate batteries are gaining market share because of their competitive cost, cycle life, and thermal performance. LFP represented approximately 35% of US electric vehicle battery deployments in 2024, up from about 20% in 2022. Adoption by Tesla, Ford, and General Motors is expected to support further growth across both electric vehicles and stationary storage.
IRA Incentives Reshape Domestic Battery Manufacturing
More than USD 130 billion in US battery gigafactory investments have been announced, supported by the Inflation Reduction Act and its Section 45X Advanced Manufacturing Production Credit. The program provides credits of USD 35 per kilowatt-hour for qualifying domestically manufactured battery cells and USD 10 per kilowatt-hour for qualifying battery modules.
Major projects include LG Energy Solution facilities in Michigan and Arizona, Samsung SDI manufacturing in Indiana, SK On operations in Georgia, Panasonic's Kansas gigafactory, and additional investments from AESC and other market participants. These projects are expanding domestic cell production, reducing reliance on imported batteries, and increasing supply-chain resilience for automotive and energy storage customers.
Grid-Scale Battery Energy Storage Leads Application Growth
Energy storage systems represent approximately 20% of the United States rechargeable battery market and are projected to be the fastest-growing application segment, with an estimated compound annual growth rate of approximately 25%. More than 35 GWh of new US battery energy storage capacity was deployed in 2024, compared with approximately 10 GWh in 2022.
Deployment is being supported by federal investment tax credits, renewable energy integration requirements, utility resource adequacy programs, and rising electricity demand. California, Texas, and Arizona remain leading markets for utility-scale installations. Tesla Megapack, Fluence, and CATL are among the prominent suppliers competing for US battery energy storage system projects.
Residential solar-plus-storage is also expanding, supported by the 30% residential clean energy credit and declining system costs. The segment is projected to grow at approximately 18% annually, particularly in states with high electricity prices, time-of-use rates, and resilience requirements.
Next-Generation Battery Commercialization Advances
Solid-state battery development continues to progress toward pilot production and potential commercial deployment after 2027. Toyota has committed significant investment to solid-state technology, while QuantumScape and Solid Power are advancing automotive validation programs with Volkswagen, BMW, and Ford. QuantumScape reported customer deliveries of lithium-metal battery cells for extended testing in 2024, including performance exceeding 1,000 charging cycles with less than 5% capacity degradation.
Panasonic also advanced US production of large-format cylindrical cells at its Kansas facility, while LG Energy Solution continued development of its Arizona gigafactory, which is targeting annual capacity of 36 GWh. These investments reflect growing competition in advanced cell formats, manufacturing efficiency, energy density, and domestic production eligibility.
Competitive Landscape
The US rechargeable battery market features strong participation from Panasonic Energy, LG Energy Solution, Samsung SDI, and SK On. Panasonic maintains a significant position through its relationship with Tesla, while LG Energy Solution supplies General Motors, Honda, and Stellantis. Samsung SDI is expanding prismatic-cell production for automotive partners, and SK On is investing more than USD 11 billion in US manufacturing, including its BlueOval SK partnership with Ford.
US-based companies are also expanding their roles across battery energy storage, silicon-anode technology, and solid-state development. Tesla Energy, Enovix, QuantumScape, and Solid Power address specialized segments within the broader rechargeable battery ecosystem.
Key United States Rechargeable Battery Market Highlights
- The market is projected to increase from USD 28.0 billion in 2025 to USD 68.0 billion by 2035. Lithium-ion batteries account for approximately 75% of total market value. Electric vehicles represent approximately 45% of market value and remain the largest end-use segment. More than USD 130 billion in domestic battery manufacturing investments have been announced. Grid-scale battery energy storage is projected to grow at approximately 25% annually. LFP chemistry reached approximately 35% of US electric vehicle battery deployments in 2024. Solid-state battery programs are advancing toward anticipated commercialization in 2027 and 2028.
Supported by electric vehicle production, renewable energy integration, federal manufacturing incentives, and next-generation battery technologies, the United States rechargeable battery market is positioned for sustained expansion through 2035. Domestic manufacturing growth and continued investment in battery innovation are expected to strengthen the country's role in the global energy storage supply chain.
Key Topics Covered:
United States Rechargeable Battery Market
- Executive Summary Market Size 2025-2026 Market Growth 2026(F)-2033(F) Key Demand Drivers Key Players and Competitive Structure Industry Best Practices Recent Trends and Developments Industry Outlook Market Overview and Stakeholder Insights Market Trends Key Verticals Key Regions Supplier Power Buyer Power Key Market Opportunities and Risks Key Initiatives by Stakeholders Economic Summary GDP Outlook GDP Per Capita Growth Inflation Trends Democracy Index Gross Public Debt Ratios Balance of Payment (BoP) Position Population Outlook Urbanisation Trends Country Risk Profiles Country Risk Business Climate North America Rechargeable Battery Market Market Analysis Key Industry Highlights Rechargeable Battery Market Historical Market (2018-2025) Rechargeable Battery Market Market Forecast (2026-2033) United States Rechargeable Battery Market Market Analysis Key Industry Highlights United States Rechargeable Battery Market Historical Market (2018-2025) United States Rechargeable Battery Market Market Forecast (2026-2033)
United States Rechargeable Battery Market Market by Battery Chemistry/Technology
- Lithium-Ion Historical Trend (2018-2025) Forecast Trend (2026-2033) Lead-Acid Historical Trend (2018-2025) Forecast Trend (2026-2033) NiMH (Nickel-Metal Hydride) Historical Trend (2018-2025) Forecast Trend (2026-2033) Solid-State Historical Trend (2018-2025) Forecast Trend (2026-2033) Others
United States Rechargeable Battery Market Market by Application Segment
- Automobiles/EVs Historical Trend (2018-2025) Forecast Trend (2026-2033) Industrial Batteries Historical Trend (2018-2025) Forecast Trend (2026-2033) Portable Electronics Historical Trend (2018-2025) Forecast Trend (2026-2033) Energy Storage Systems Historical Trend (2018-2025) Forecast Trend (2026-2033) Others
United States Rechargeable Battery Market Market by End-Use Sector
- Electric Vehicle Historical Trend (2018-2025) Forecast Trend (2026-2033) Renewable Energy Storage Historical Trend (2018-2025) Forecast Trend (2026-2033) Backup Power Historical Trend (2018-2025) Forecast Trend (2026-2033) Consumer Electronics Historical Trend (2018-2025) Forecast Trend (2026-2033) Others
United States Rechargeable Battery Market Market by Region
- Northeast Historical Trend (2018-2025) Forecast Trend (2026-2033) Midwest Historical Trend (2018-2025) Forecast Trend (2026-2033) South Historical Trend (2018-2025) Forecast Trend (2026-2033) West Historical Trend (2018-2025) Forecast Trend (2026-2033)
Market Dynamics
- SWOT Analysis Strengths Weaknesses Opportunities Threats Porter's Five Forces Analysis Supplier's Power Buyer's Power Threat of New Entrants Degree of Rivalry Threat of Substitutes Key Indicators of Demand Key Indicators of Price
Competitive Landscape
- Supplier Selection Key United States Players Key Regional Players Key Player Strategies Company Profile BYD Co. Ltd. (China) Company Overview Product Portfolio Demographic Reach and Achievements Certifications Contemporary Amperex Technology Co. Ltd. (CATL) (China) Company Overview Product Portfolio Demographic Reach and Achievements Certifications Panasonic Corporation (Japan) Company Overview Product Portfolio Demographic Reach and Achievements Certifications LG Energy Solution (South Korea) Company Overview Product Portfolio Demographic Reach and Achievements Certifications Samsung SDI (South Korea) Company Overview Product Portfolio Demographic Reach and Achievements Certifications Exide Industries (India) Company Overview Product Portfolio Demographic Reach and Achievements Certifications GS Yuasa Corporation (Japan) Company Overview Product Portfolio Demographic Reach and Achievements Certifications Tesla Energy (United States) Company Overview Product Portfolio Demographic Reach and Achievements Certifications EnerSys (United States) Company Overview Product Portfolio Demographic Reach and Achievements Certifications Others
List of Key Figures and Tables
- North America United States Rechargeable Battery Market: Key Industry Highlights, 2018 and 2033 United States Rechargeable Battery Market: Key Industry Highlights, 2018 and 2033 United States Rechargeable Battery Historical Market: Breakup by Battery Chemistry/Technology (USD USD Billion), 2018-2025 United States Rechargeable Battery Market Forecast: Breakup by Battery Chemistry/Technology (USD USD Billion), 2026-2033 United States Rechargeable Battery Historical Market: Breakup by Application Segment (USD USD Billion), 2018-2025 United States Rechargeable Battery Market Forecast: Breakup by Application Segment (USD USD Billion), 2026-2033 United States Rechargeable Battery Historical Market: Breakup by End-Use Sector (USD USD Billion), 2018-2025 United States Rechargeable Battery Market Forecast: Breakup by End-Use Sector (USD USD Billion), 2026-2033 United States Rechargeable Battery Historical Market: Breakup by Region (USD USD Billion), 2018-2025 United States Rechargeable Battery Market Forecast: Breakup by Region (USD USD Billion), 2026-2033 United States Rechargeable Battery Market Supplier Selection United States Rechargeable Battery Market Supplier Strategies
Companies Featured
- BYD Co. Ltd. (China) Contemporary Amperex Technology Co. Ltd. (CATL) (China) Panasonic Corporation (Japan) LG Energy Solution (South Korea) Samsung SDI (South Korea) Exide Industries (India) GS Yuasa Corporation (Japan) Tesla Energy (United States) EnerSys (United States)
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