Battery Manufacturing in the US: Market Size, Businesses & Forecast 2026

The Battery Manufacturing industry in the US encompasses the production of primary (non-rechargeable) and secondary (rechargeable) batteries used across automotive, industrial, and consumer applications. Driven by massive investments in clean energy infrastructure and electric vehicles, the sector is experiencing significant capacity expansions nationwide. Domestic factories reached a milestone capacity to manufacture 69.4 gigawatt-hours (GWh) of battery energy storage systems in 2025 (Solar Energy Industries Association). The industry continues on a rapid upward trajectory, with domestic module and system manufacturing projected to climb to 164 gigawatt-hours (GWh) by 2027 (U.S. Energy Stor

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What does the Battery Manufacturing in the US industry cover?

The industry involves the processing of raw materials and chemical components into functional battery cells, modules, and multi-cell packs. It incorporates both non-rechargeable units like standard alkaline cells and rechargeable advanced chemistries like lithium-ion and lead-acid. The scope extends from smaller portable electronics batteries to massive multi-megawatt utility-scale grid storage installations.

• •Covers primary battery production under specialized sub-classifications for civilian and military procurement.
• •Includes secondary batteries which dominate the market due to automotive electrification and grid-tied systems.
• •Encompasses downstream packaging operations where purchased cells are integrated into proprietary electronic housings.

Who operates in the industry and how is it structured?

The domestic manufacturing landscape is characterized by a mix of traditional lead-acid producers and a rapidly expanding cohort of multinational lithium-ion joint ventures. Large automotive conglomerates and electronics firms partner with dedicated cell manufacturers to build highly automated gigafactories. Production is increasingly concentrated in regional hubs across the South and Midwest, often referred to as the 'Battery Belt'.

• •Small Business Administration standards cap small-entity classification at a maximum of 1,000 employees for NAICS 33591.
• •The market features complex joint venture agreements bridging foreign technology providers with domestic automotive assembly plants.
• •Establishments require highly specialized chemical processing infrastructure and strict environmental monitoring controls.

What drives demand in the industry?

Demand is heavily dictated by utility-scale electric grid updates, electric vehicle (EV) production targets, and commercial backup infrastructure. The integration of renewable energy sources requires substantial stationary storage buffers to maintain grid frequency and manage peak loads. Additionally, the proliferation of large-scale artificial intelligence data centers is generating severe demands on reliable standby power architectures.

• •Grid developers plan to add 24 gigawatts (GW) of utility-scale battery storage to the US power grid in 2026 (U.S. Energy Information Administration).
• •Utility-scale storage installations reached a record-shattering 57.6 gigawatt-hours (GWh) of new capacity in 2025 (Solar Energy Industries Association).
• •Texas is poised to eclipse California in 2026 as the single largest regional market for grid-integrated battery arrays.

Who are the notable companies in the industry?

The domestic competitive landscape is high-stakes and capital-intensive, featuring veteran battery manufacturers and massive multi-national technology corporations. These major entities compete aggressively on chemical energy density, supply chain localization, and manufacturing throughput. Companies are currently racing to deploy localized domestic supply loops to secure raw material access.

• •Tesla, Inc. operates major production lines and a dedicated lithium refining facility in Corpus Christi designed to support 30 GWh of annual output.
• •LG Energy Solution, Ltd. is actively expanding its footprint, targeting approximately 50 GWh of North American energy storage cell capacity in 2026.
• •Energizer Holdings, Inc. and EnerSys remain prominent legacy operators maintaining extensive domestic manufacturing assets.
• •Samsung SDI Co., Ltd. continues to scale up its presence through dedicated American factory commitments.

What are the recent trends and outlook?

A prominent recent trend is the conscious pivot of battery cell manufacturers from purely automotive electric vehicle supplies toward dedicated stationary energy storage production. Factories are converting active lines and updating long-term blueprints to capture the booming utility market. Supply chains are also shifting toward alternative chemistries like lithium iron phosphate (LFP) due to cost benefits.

• •Domestic manufacturing capacity for stationary storage systems grew from 7.5 GWh in 2023 to 69 GWh by the end of 2025.
• •Lithium-ion battery cell manufacturing specifically dedicated to stationary electricity storage reached over 21 GWh as of 2025.
• •American factories are on track to eclipse total domestic project demand by the end of 2026 with a projected capacity of 96 GWh.

How is the industry regulated?

Operators face comprehensive compliance frameworks governing hazardous material transport, workspace safety, and toxic waste disposal. Federal programs provide extensive financial incentives for localized production while levying strict sourcing limitations on foreign entities of concern. Local zoning and environmental permits strictly monitor the storage, usage, and disposal of heavy metals and chemical solvents.

• •Manufacturers must align with strict EPA guidelines regarding lead, nickel, and organic solvent emissions.
• •Federal sourcing mandates require increasing thresholds of domestic mineral extraction and processing to qualify for energy credits.
• •The Department of Transportation strictly regulates the packaging and logistical transit of large-format lithium battery packs.

Government, statistical and trade sources used for this Claight analysis.

• Solar Energy Industries Association 2026 ·
• U.S. Energy Information Administration 2026 ·
• U.S. Energy Storage Coalition 2026 ·
• U.S. Bureau of Labor Statistics 2026 ·
• U.S. Census Bureau 2024