Battery Manufacturers NAICS 335910

Mar 24, 2026 - Dependence on Foreign Materials an Industry Challenge

• The US battery industry faces significant vulnerabilities due to its deep dependence on foreign lithium sources, particularly China, which dominates global refining and battery production. According to Jeremy Furr, senior vice president of strategic sourcing for Stryten Energy, this reliance exposes critical American industries - from electric vehicles to healthcare and logistics - to geopolitical risks, supply disruptions, and price volatility. To secure its battery future, the US must build an end-to-end domestic supply chain encompassing mining, refining, manufacturing, and recycling. The lead battery industry mode is a near-perfect closed-loop recycling system demonstrating how a self-sustaining, economically valuable supply chain can be achieved with lithium as well. Vertical integration - through partnerships, long-term supply agreements, and joint ventures - will be essential for improving quality control, transparency, and supply chain resilience. Combined with targeted federal incentives and cross-sector collaboration, these efforts could help the US battery industry achieve genuine energy independence.
• AI-hungry data centers are transforming the battery industry, turning batteries from sleepy backup gear into frontline power tools. As AI workloads send GPU power demand surging and swinging by the second, grids and diesel generators can’t react fast enough. That’s pushing data centers to lean on large battery systems to smooth out spikes, shave peaks, and keep operations stable. The catch: today’s lithium-ion batteries weren’t built for constant cycling, so frequent deep discharges are accelerating wear and forcing a rethink of battery design. Safer, longer-lasting chemistries like LFP are gaining ground, along with external battery installations to reduce fire risk. Smarter battery management software is also stepping in, using predictive analytics to stay ahead of demand. The result is a battery sector that’s suddenly central to powering the AI boom, not just backing it up.

• The Southeastern US has become a hotbed for EV and battery manufacturing with Georgia, North Carolina, and Tennessee among the top growth states in the sector. (Over $20 billion in projects and more than 16,000 jobs are planned for North Carolina alone.) But there’s growing concern that shifting federal policies under the Trump administration could slow the region’s momentum. Federal repeals of clean-energy tax credits and delays or freezes in programs like the National Electric Vehicle Infrastructure (NEVI) Formula Program, which supports building charging infrastructure, threaten demand and incentive structures for EV purchases nationwide. As a result, some battery plants in the region have been cancelled (such as the scrapped $1.4 billion Natron Energy plant in Kingsboro, NC) due to funding, capital constraints, or policy uncertainty. Industry leaders warn that without consistent incentives and policy support, the Southeast’s recent gains in battery and EV manufacturing might flatten out.
• With electric vehicle (EV) mandates being rescinded and demand for EVs falling, manufacturers who revved up battery production as a result have found themselves in search of different markets for their products. The large-scale battery storage industry - used by utilities, giant data storage centers, and wind and solar power providers - is quickly becoming the target for battery makers rather than carmakers. A rush of battery plant construction over the last five years in the American South and Midwest have left the properties underused or delayed altogether. Tesla’s revenue from battery storage systems grew a massive 67% last year to $4 billion. General Motors plans to supply new and used batteries to energy storage startups. These energy storage systems are designed to provide back-up power in case of emergency, a market that has tripled from 2021-24 and is expected to grow 35% in 2025, according to consulting firm Wood Mackenzie.