U.S. Lead Acid Battery Market Size, Share & COVID-19 Impact Analysis, By Type (Flooded and VRLA), By Application (SLI, Stationary, E-Bikes, Low Speed EVS, and Others), and Country Forecast, 2023-2030

The U.S. lead acid battery market size was worth USD 7.10 billion in 2022 and is expected to grow at a CAGR of 5.33% during the forecast period.

Lead acid batteries are commonly used automotive sector driven by the increasing adaptation of ther EVs.  Moreover, there are challenges to overcome for lead acid batteries as it not eco-friendly owing to the toxic elements it contains. The U.S. market for lead acid batteries is set to rise due to increasing demand for these batteries in energy storage devices used in the automobile and electronic industries and also in data centers. Comparing to the competition, these batteries holds the maximum share in the market driven by multiple factors.

The COVID-19 pandemic led to a stagnant the growth of the U.S. lead acid battery market. Manufacturers closed down their operations due to the pandemic, leading to disruptions in supply and procurement. The automotive sector, especially, faced supply chain delays that had adverse effects on the production of automotive and electronic equipment, including essential hardware components for lead-acid batteries. However, this is further predicted to positively impact electronics equipment & automotive manufacturing, comprising hardware parts of automotive lead acid batteries.

U.S. Lead Acid Battery Market Trends

High Recycling Rate of Lead Acid Battery is the Key Trends in the Market

A new study reveals that Battery Council International (BCI), the leading trade association representing the global battery manufacturing and recycling industry, is pleased to announce that the U.S. lead battery industry continues to demonstrate an outstanding 99% recycling rate, the highest among any U.S. consumer product.  Battery recycling is one of the leading trends for lead-acid batteries. This achievement underscores its commitment to sustainable practices. In addition, the lead acid sector makes a substantial contribution to the U.S. economy, with an annual economic impact of USD 26.3 billion.  This economic influence extends across 18 states, covering every region of the country (As per the data of World Trade Organization).

For instance, in December 2022, Glen Core signed a long-term agreement with recycling technology company ACE Green Recycling. As part of the agreement, Glencore would receive up to 100% of ACE’s products from four proposed lead-acid and lithium-ion battery recycling parks in the U.S., India, and Thailand.

U.S. Lead Acid Battery Market Growth Factors

Automotive Industry Expansion to Drive the Market Growth

The rising demand for vehicles such as forklifts, golf carts, and railroads, is likely to drive market growth. Lead acid batteries play a crucial role in powering these vehicles. The expanding material handling industry, along with the growth of e-commerce and warehousing in the U.S., is expected to increase the demand for forklifts and their associated batteries, such as lead acid batteries.

For instance, in August 2023, the Census Bureau of the Department of Commerce reported that U.S. retail e-commerce sales for the second quarter of 2023 were around USD 277.6 billion. This marked a 2.1% (±0.9%) increase from the first quarter of 2023.

RESTRAINING FACTORS

Low Energy Density of Lead Acid Battery Might Hinder the Market Growth

U.S. lead acid battery market growth might get negatively affected due to its small energy storage capacity. Unlike other batteries, these batteries are not widely used in numerous applications due to several factors that could decrease its demand in recent years. In addition, As per EIA, lead acid accounted for less than 1% of large-scale battery storage power capacity installed by the end of 2019 in the U.S. Their limited use on a large scale is attributed to their their relatively low energy density and short cycle life.

U.S. Lead Acid Battery Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into flooded and valve-regulated lead acid (VRLA), where VRLA is sub-segmented into AGM and GEL.

The flooded segment held the largest market share in 2022 due to its relatively low cost compared to other types of batteries. In addition, these batteries are known for their reliability, are experiencing an increased demand, supported by their longevity with proper maintenance.

• According to Stryten Energy 2022, a renowned U.S. battery manufacturer, reported significant development in “EV start-stop technology. They indicated that the average capacity output of EFB (Enhanced Flooded Batteries) was 50% greater than AGM for equally-sized batteries. As a result, these batteries will dominate the U.S. automotive industry in the forecast years.

By Application Analysis

Based on application, the market is segmented into SLI, stationary, E-Bikes, low-speed EVs, and others.

The SLI segment held the largest market share owing to the growing SLI applications in the automotive and commercial sectors and continues growth. It currently leads the transportation industry as they are used within all types of vehicles such as internal trucks, boats, and other internal combustion motorized vehicles, meeting the rising demand for lead acid batteries and lithium-ion batteries.

For instance, in April 2023, Li-Cycle Holdings Corp inked a definitive agreement for a long-term recycling relationship. According to the agreement, Li-Cycle would become VinES' strategic and preferred recycling partner for VinES battery materials sourced from Vietnam starting in 2024.

List of Key U.S. Lead Acid Battery Market Companies

In terms of the competitive landscape, the U.S. lead acid battery market share represents the presence of established and emerging lead acid battery manufacturing companies. East Pen Manufacturing, Exide Technologies, and B.B. Battery Co., Ltd. dominated the U.S. market in 2022. East Pen Manufacturing has been a longstanding leader in the battery industry, also ranking among the largest providers of SLI batteries in North America. In addition, the company is capturing continues growth in market by delivering solutions for multiple applications in the market, including transportation and marine.

Some of the other companies with a significant presence in the U.S. market include Johnson Controls and EnerSys. For instance, in July 2020, EnerSys collaborated with Blink Charging Company, one of the Electric Vehicle charging equipment providers. The partnership was aimed to develop high-power wireless DC fast charging solutions deployed in integrated battery storage for transportation applications.

LIST OF KEY COMPANIES PROFILED:

• EnerSys (U.S)


• East Pen Manufacturing (U.S.)


• C&D Technologies Inc. (U.S.)


• Crown Battery (U.S.)


• Hitachi Chemical Co. Ltd. (U.S.)


• Johnson Controls (U.S.)


• Exide Technologies (U.S.)


• B.B. Battery Co., Ltd. (U.S.)


• Panasonic Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• March 2023 – Panasonic Holdings Corp’s battery manufacturing unit is reportedly in discussions to supply electric vehicle batteries to Subaru Corp.


• December 2022– The U.S. state of Nevada announced the acquisition of a second facility in the Tahoe-Reno Industrial Center. This ready-to-use facility, which previously housed a large-scale recycling operation for lead-acid batteries, possessed a permit for similar operations and included necessary infrastructure equipment, according to ABTC.


• December 2022 – Battery recycling pioneer, ACE Green Recycling, secured a long-term offtake agreement with Glencore PLC to supply recycled battery materials.

REPORT COVERAGE

The U.S. lead acid battery market report provides a detailed analysis of the market. It focuses on key aspects such as an overview of the technological advancements and the trend of the market in the U.S. Additionally, it includes key findings for lead acid battery, new product launches, key industry developments such as mergers, partnerships, acquisitions, and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation