Battery Manufacturers NAICS 33591

Mar 13, 2025 - US Electric Vehicle Battery Manufacturing Poised to Jump in 2025

• The US electric vehicle (EV) battery manufacturing capacity could jump 90% by the end of 2025 if current factory construction is completed, according to UK research firm Benchmark Mineral Intelligence. Ten new US-based EV battery factories are planned to open in 2025 by such companies as electronics maker Panasonic and Samsung, as well as auto makers Ford, Hyundai, and Stellantis, among others. If they all go online, US EV capacity could hit 421.5 gigawatt-hours per year (enough power to operate 105,000 electric vehicles a year). Headwinds loom, though, in the form of the Trump administration reversing Biden-era EV climate goals, whipsawing tariff threats and levies on North American trading partners, and the unknown of any future regulatory changes. Despite these challenges, and if the government turns even more hostile towards EVs, Benchmark notes that closing any of the factories is unlikely given the projects are almost complete.
• Battery manufacturers should anticipate challenges securing certain battery raw materials by 2030 as a result of fast-growing demand for batteries, according to a new report by McKinsey in Engineering News. The “Toward Security in Sustainable Battery Raw Material Supply” report notes that demand for battery raw materials is expected to outpace the base-case supply due to battery demand from the automotive and energy sectors. McKinsey says battery producers currently use 80% of all lithium mined, a share expected to increase to 95% by 2030. Battery manufacturers and raw materials producers will need to further invest in supply growth and manage price volatility and fear of shortages. One investment expected to grow supply is the adoption of direct lithium extraction technology, which can unlock large, previously inaccessible deposits. Per the report, “With technological advancements shifting in favour of lithium-heavy batteries, lithium mining will need to increase substantially to meet 2030 demand.”

• Producer prices for battery manufacturers increased 0.5% in November 2024 compared to a year ago, according to the latest data from the Bureau of Labor Statistics (BLS). Employment by battery manufacturers declined 1.2% in October 2024 compared to a year ago, while wages at electrical equipment and components manufacturers grew by 3.1% during the period, per the BLS. US manufacturing activity contracted in December 2024, marking the ninth consecutive month of contraction for the Manufacturing PMI, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.3% in December, up 0.9 percentage points from the 48.4% recorded in November. A reading above 50% indicates manufacturing expansion.
• According to a report in EE Power, battery manufacturers are expanding capacity worldwide to meet the rising demand for data center power applications, energy storage, and electric vehicle charging capacity. Recent projects include two gigafactories in the US and Europe, a battery innovation center in the US, and a cobalt sulfate refinery in Canada. Natron Energy is planning a $1.4 billion, 1.2 million-square-foot gigafactory for sodium-ion batteries in eastern North Carolina, aimed at meeting increasing demand for EV charging, grid storage systems, and data center backup power. Morrow Batteries recently opened Europe’s first gigawatt-scale lithium iron phosphate battery plant in Norway, manufacturing batteries for energy storage and heavy-duty mobility applications. Chemours has opened a battery innovation complex in Newark, Delaware, to test next-generation lithium-ion battery technologies. Canada-based Electra Battery Materials is building a hydrometallurgical cobalt sulfate production plant in Ontario, which will be North America’s first refinery for cobalt sulfate, the active ingredient in lithium-ion batteries.