The United States lithium-ion battery market is poised for remarkable growth, expected to reach $33.61 billion by 2028, up from $9.98 billion in 2023. This growth, at a compound annual growth rate (CAGR) of 22.6% during 2023-2028, is driven by the increasing demand for electric vehicles (EVs) and renewable energy storage solutions.
Technological Advancements and Government Support
Advancements in technology, such as the transition from lead acid to lithium-ion batteries, have made EVs more attractive to consumers by reducing weight, enhancing performance, and extending range. Government incentives and policies also play a pivotal role in this growth. The Energy Storage Tax Credit program, initiated in 2016, is one such policy designed to boost the demand for lithium-ion battery storage.
Role of U.S. Companies
Prominent U.S. companies like Tesla Inc. and Boeing are significantly contributing to the market by manufacturing advanced batteries and fuel cell technologies. These companies are capitalizing on the rising demand for energy storage solutions and EVs.
American Innovation and Manufacturing Act
In a significant move to further propel the industry, the United States government announced the American Innovation and Manufacturing Act of 2021. This legislation provides incentives for companies involved in lithium-ion battery manufacturing, offering tax credits for clean energy technology investments and aiming to create jobs in the energy sector.