Battery Market Outlook:
Battery Market size was valued at USD 157.4 billion in 2025 and is projected to reach USD 631.8 billion by the end of 2035, rising at a CAGR of 16.7% during the forecast period, i.e., 2026-2035. In 2026, the industry size of battery is estimated at USD 183.6 billion.
The battery market is representing continued expansion owing to the rising demand for energy storage across sectors such as transportation, grid, and industrial applications. Also, supply chains in this market are increasingly focused on domestic sourcing and vertical integration to address geopolitical and logistical risks, whereas manufacturers are investing in advanced production techniques and materials processing to enhance both efficiency and performance. The article published by the U.S. Department of Energy in February 2022 disclosed that the global grid energy storage sector was projected to expand rapidly, with lithium-ion batteries identified as the dominant technology, comprising over 95% of short-duration storage deployments. It also stated that China held a commanding position with nearly 80% of the world's lithium-ion cell manufacturing capacity, positively contributing to the sector’s expansion.
Furthermore, the Congress article published in July 2025 reported that there has been a significant growth in the U.S. battery sector, wherein the domestic exports of lithium-ion energy storage batteries increased from negligible levels in 2012 to nearly USD 8 billion in 2024, whereas the imports of such batteries grew even more substantially, reaching over USD 25 billion in the same year. Simultaneously, China is dominating this import sector, supplying 69% of finished lithium-ion batteries and 33% of non-lead-acid battery parts. The report also underscored that domestically, the shipment value of U.S.-produced non-lead-acid batteries surpassed USD 16.6 billion in 2022, and employment in battery manufacturing reached 54,400 in 2024, indicating a strong battery market potential in the upcoming years.
U.S. Battery Supply Chain: Data and Trends
|
Category |
Key Fact |
Figure / Trend |
|
Imports |
Lithium-ion Battery Imports (Share) |
Increased from 17% (2009) to 84% (2024) of all battery imports. |
|
Top Import Source (China) |
Supplied 69% of finished lithium-ion batteries in 2024. |
|
|
Domestic Production |
U.S. Factory Output (2020-2023) |
Grew by 57.6%. |
|
U.S. Battery Jobs (2024) |
54,400 (a record high). |
|
|
Supply Chain |
Projected U.S. Battery Cell Supply |
Expected to meet future demand. |
|
Projected U.S. Component Supply (e.g., separators, foil) |
Projected to be insufficient for future cell production. |
|
|
Prices |
U.S. vs. China Battery Cost (2024) |
U.S. cells were ~90% more expensive before subsidies/tariffs. |
Source: Congress.gov
