North America Consumer Battery Industry

North America Consumer Battery Market Analysis

The North America Consumer Battery Market is expected to register a CAGR of greater than 9.79% during the forecast period.

• Major factors driving the market include declining lithium-ion battery prices and increasing sales of consumer electronics. Moreover, North America remains a pioneer in research and innovation in the global consumer battery market and is also one of the largest consumers of batteries.
• On the other hand, the demand-supply mismatch of raw materials is likely to hinder the domestic manufacturing market growth during the forecast period.
• The plans to establish strong domestic manufacturing for li-ion batteries in the United States are expected to provide significant opportunities for the players involved in the market in the near future.
• The United States is expected to dominate the market during the forecast period, owing to the increasing sales of consumer electronics in the country.

North America Consumer Battery Market Trends

Lithium-ion Batteries to Witness Significant Growth

• Advancements in technology and mass production or economies of scale have led to a significant fall in lithium-ion battery prices. Furthermore, it is forecasted that lithium-ion battery prices will keep decreasing. This, in turn, is expected to drive the li-ion battery segment further.
• The sale of consumer electronics, which use lithium-ion batteries, has been increasing hand-in-hand with the region's economic growth, positively impacting the consumer battery market.
• Due to its high electrode potential, high charge, and power-to-weight ratio, lithium is among the critical components for battery electrolytes and electrodes.
• Additionally, lithium-ion batteries are rechargeable and have a high energy density. The demand for this type of battery has been driven primarily by the proliferation of personal technology products, including smartphones, tablets, and laptops.
• The GDP growth rate in the region is expected to increase at a moderate pace during the forecast period. When supported by the expected increase in demand for electronic devices due to the increasing population, consumer battery demand is also expected to go up.
• Therefore, the above-mentioned factors are expected to drive the li-ion consumer battery market in the North American region during the forecast period.

The United States to Dominate the Market

• The United States is one of the largest markets for consumer batteries, mainly due to the high demand for consumer goods and military equipment.
• The United States portable medical equipment market is growing significantly, in turn, driving the consumer battery demand for portable medical equipment in the country during the forecast period.
• 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 is expected to ramp up the demand for technically advanced devices due to the benefits provided by the same. Consecutively, this is expected to result in a growth in demand for consumer batteries.
• The United States has been focusing on developing a domestic mineral supply to strengthen the lithium-ion battery supply chain, reducing the dependence on imports. In order to mitigate this, in February 2021, the President of the United States, Joe Biden, issued an executive order which included a directive for the Secretary of Energy requesting a report identifying risks in the supply chain for high-capacity batteries, including electric-vehicle batteries, and policy recommendations to address the said risks. Prior to this, in September 2020, with an acquisition of a 10,000-acre lithium deposit, Tesla had already secured rights to extract lithium in Nevada for its own use in the manufacturing of batteries.
• Therefore, the above-mentioned factors are expected to drive the consumer battery market in the United States during the forecast period.

North America Consumer Battery Industry Overview

The North American consumer battery market is moderately fragmented. Some of the key players in this market (in no particular order) include PolyPlus Battery Company Inc, Samsung SDI Co. Ltd, LG Chem Ltd, Panasonic Corporation, and Duracell Inc.

North America Consumer Battery Market Leaders

North America Consumer Battery Market News

• October 2022: The U.S. Department of Energy (DOE) announced the first set of projects funded by the President's Bipartisan Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles (EVs) and the electrical grid and for materials and components currently imported from other countries. The 20 companies will receive a combined USD 2.8 billion to build and expand commercial-scale facilities in 12 states to extract and process lithium, graphite, and other battery materials.
• November 2022: The Minister of Innovation, Science and Industry announced a USD 27 million contribution to E3 Lithium Ltd. through the Strategic Innovation Fund's Net Zero Accelerator initiative. This investment will support E3 Lithium's USD 87 million projects for the construction of a demonstration plant specializing in lithium production.