Battery Manufacturers

The 240 battery manufacturers in the US produce power sources for household, commercial, and industrial use. Major types of products include storage batteries, primary batteries, and parts for storage batteries. Firms may sell related products, such as battery chargers, power equipment, lights, and battery accessories.

Variable Raw Material Cost and Supply

The cost and supply of raw materials can vary and affect profitability for battery manufacturers.

Keeping Up with Advances in Technology

Battery technology moves forward, even as manufacturers expand existing capacity to keep up with growing demand for lithium-ion products.

Jul 28, 2026 - LFP Batteries Gain Ground in US Manufacturing

• Battery manufacturers are increasing production of lithium iron phosphate (LFP) batteries as automakers and energy storage developers look for lower-cost alternatives to traditional nickel- and cobalt-based lithium-ion batteries. LFP batteries are less expensive to produce, last longer, and use more abundant raw materials, though they typically provide shorter driving range. The Federal Reserve Bank of Dallas says manufacturers including Ford and LG Energy Solution have revised US battery plant plans to add LFP production, reflecting growing demand for the chemistry. The shift could reduce manufacturers' exposure to volatile critical mineral prices while lowering production costs. It also positions battery makers to serve both the expanding energy storage market and the growing share of affordable electric vehicles.
• The US battery industry has expanded rapidly in recent years, with domestic battery production rising nearly 140% between 2020 and 2025, according to the Center for Strategic and International Studies (CSIS). During that time, more than 180 battery component facilities opened across 38 states. The report says growth has been strongest in downstream cell and pack manufacturing, while midstream components and upstream mineral processing continue to lag. CSIS also notes that the US remains heavily dependent on global supply chains, particularly China, which controls roughly 70-90% of much of the global lithium-ion battery value chain and supplied nearly 70% of US non-lead-acid battery imports in 2024. At the same time, allied partners, especially Korean and Japanese firms, have become major investors and operators in expanding US battery manufacturing capacity.
• 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.

Industry size & Structure

The average battery manufacturer employs 130 workers and generates $61 million annually.

• The battery manufacturing industry consists of about 240 firms that employ about 31,445 workers and generate $14.75 billion annually.

• The industry is highly concentrated; the top 50 companies account for about 96% of industry revenue.

• Large firms with primary battery manufacturing capacity include Energizer, Enersys, and Duracell (Berkshire Hathaway). Large global firms with storage battery manufacturing capabilities include LG Chem, CATL, BYD, Panasonic, and TESLA. Domestic firms, which include EastPenn Manufacturing, Clarios (Brookfield Business Partners), and Exide Technologies, typically have international operations.

• Many lithium-ion battery manufacturers are subsidiaries of larger companies, including auto and consumer electronics manufacturers.