Battery Manufacturers NAICS 33591

May 13, 2025 - Battery Industry Asks Feds to Partner on $100 Billion Grid Project

• The lithium-ion battery industry in the US is asking the federal government for policy and monetary support to build an American-made self-sufficient battery grid by 2030. Grid batteries are massive, large-scale energy storage systems that can be directly plugged into utilities. “Within five years, and with $100 billion in investment, we can satisfy 100% of U.S. demand for battery storage,” said Jason Grumet, CEO of the trade group American Clean Power Association. The 2022 Inflation Reduction Act offered tax incentives for domestic clean energy production, and the legislation helped the US close the gap with China, the world’s largest producer of lithium-ion batteries. The Trump administration, however, wants to eliminate those tax credits and its tariff policies are already hampering domestic battery production with manufacturers lowering forecasts and delaying clean energy projects. About 70% of US batteries needed for grid projects came from China last year.
• 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.