US Electric Vehicle Components Market Report, Size, Share, Opportunities, and Trends Segmented By Component Type, Vehicle Type, Technology, and End User – Forecasts from 2025 to 2030

Description

US Electric Vehicle Components Market Size:

The US Electric Vehicle Components Market is expected to witness robust growth over the forecast period.

US Electric Vehicle Components Market Key Highlights

• The Inflation Reduction Act (IRA) battery sourcing requirements create an immediate, non-negotiable demand signal for North American-produced battery components, including cathodes and anodes.
• Total announced investment in US EV battery and component manufacturing has exceeded $123 billion, demonstrating a massive capital commitment to localize the supply chain.
• Battery Electric Vehicles (BEVs) are the primary growth catalyst, accounting for over 70% of the electric car stock in 2023 and driving the market for high-energy density component architectures.
• Localization imperatives are expanding beyond battery cells to include electric motors and power electronics, evidenced by significant federal R&D funding for advanced materials and high-efficiency designs.

The US electric vehicle components sector is navigating an accelerated, policy-led market expansion, pivoting sharply toward domestic production following the passage of major federal legislation. This legislative environment leverages consumer incentives to mandate regionalized sourcing, thereby creating unprecedented demand pressure on the domestic component manufacturing base. The transition from internal combustion engine (ICE) to electric vehicle (EV) platforms requires a complete re-tooling of the automotive supply chain, with the battery pack, electric motor, and power electronics emerging as the highest-value and most strategically critical components. This mandates that industry players rapidly scale capacity and establish resilient, continentally integrated supply chains to capture the significant, now-localized demand.

US Electric Vehicle Components Market Analysis

• Growth Drivers

The market’s primary expansion is driven by legislative mandates and escalating vehicle electrification targets, which directly increase component demand.

The Inflation Reduction Act (IRA) Domestic Content Mandates: The IRA mandates that a specific percentage of battery component value must be manufactured or assembled in North America for an EV to qualify for the full consumer tax credit. This regulatory imperative directly creates demand for US and North American-sourced battery packs, separators, and cathode/anode materials, bypassing global supply chains to secure eligibility for the incentive.

Accelerated Light-Duty Vehicle Electrification: US electric car registrations totalled 1.4 million in 2023, increasing by over 40% compared to the prior year. This substantial volume growth in the passenger car segment drives high-volume demand for standardized components like DC-DC converters, on-board chargers, and thermal management systems, necessitating new domestic assembly and production lines.

Commercial Vehicle ZEV Targets and TCO Parity: State regulations like the Advanced Clean Trucks rule, adopted by multiple states, require increasing shares of zero-emission vehicles (ZEVs) in the heavy-duty sector. As the total cost of ownership (TCO) for electric commercial vehicles reaches parity, this regulatory push and economic viability rapidly increase demand for high-power components, specifically heavy-duty electric motors and robust, modular battery packs.

Challenges and Opportunities

The market faces immediate constraints related to raw material security and component scale-up, which simultaneously present new domestic investment opportunities.

• Challenges: Raw Material Constraints: Dependence on foreign sources for critical minerals—such as lithium, nickel, and cobalt—presents a severe bottleneck. This constraint limits the speed at which US battery cell and cathode manufacturers can scale up, directly creating a demand-side risk if cell production cannot meet the pace of vehicle assembly capacity expansion.
• Opportunities: Domestic Manufacturing Incentives: Federal programs, including the Advanced Manufacturing Production Tax Credit (45X) within the IRA, provide direct financial incentives for the domestic production of battery components, critical minerals, and EV components. This tax credit directly lowers the cost of local production, accelerating investment and increasing the supply capacity necessary to meet the policy-driven component demand.

Raw Material and Pricing Analysis

As a market centered on physical products, the components sector is highly sensitive to critical mineral supply chains. The price volatility of key raw materials like lithium, a primary input for cathodes and electrolytes, directly impacts the final pricing and gross margins for battery pack manufacturers. The IRA has catalyzed over $150 billion in announced battery manufacturing investments, driving intense competition for secured, long-term supply agreements for refined materials processed in North America or free-trade partner countries, thereby creating a regionalized premium on these materials. The need to source from non-Foreign Entities of Concern has effectively fragmented the global material supply chain for US-bound components, raising initial costs but driving unprecedented investment in domestic critical mineral processing capabilities.

Supply Chain Analysis

The US EV component supply chain is highly capital-intensive and globally dependent, characterized by a rapid, yet challenging, regionalization effort. The supply chain for the most critical component, the battery pack, begins with the global extraction and processing of critical minerals, heavily concentrated in regions outside of North America. Midstream processing, including refining and cathode active material (CAM) production, is the current focus of onshoring efforts. Downstream, the US has built a pipeline of over 1,100 GWh per year of announced battery cell manufacturing capacity by 2027. This localization effort is driven by the policy imperative for North American final assembly, creating a logistical challenge for components like power electronics and electric motors, which still often rely on global production hubs for complex sub-components and semiconductor fabrication. This creates a reliance on resilient logistics to move high-value, high-mass components across the continent to support large-scale vehicle production plants.

Government Regulations

In-Depth Segment Analysis

• By Component Type: Battery Pack

The battery pack segment is the single largest growth driver in the US EV component market. This market is not merely volumetric but structural, dictated by the IRA’s strict battery component sourcing requirements. As battery electric vehicles (BEVs) increase their sales share, the need for fully assembled battery packs and their constituent components—cells, modules, thermal management materials, and Battery Management Systems (BMS)—escalates. Specifically, the mandate to avoid "Foreign Entities of Concern" drives investment in domestic cell manufacturing, which, in turn, generates a massive, captive demand for US-processed cathode active materials. The rising average range and performance of new EV models also pushes demand toward higher-energy-density cells and more sophisticated thermal management systems, creating a technical pull for innovative component architectures.

By End-User: OEMs

Original Equipment Manufacturers (OEMs) represent the dominant demand channel, as they integrate EV components directly into new vehicle production. The strategic shift by legacy automakers, alongside sustained high-volume production from pure-play EV companies, is the primary factor dictating component demand volume. OEMs are now vertically integrating or forming dedicated joint ventures for component sourcing, particularly for battery packs and electric motors, to mitigate supply chain risk and secure IRA compliance. This OEM-centric demand is focused on large, multi-year volume contracts that prioritize domestic supply certainty, performance consistency, and scale-out capabilities. These dynamic forces component suppliers to commit large-scale capital to new North American manufacturing facilities to lock in long-term OEM partnerships.

Competitive Environment and Analysis

The competitive landscape is defined by the strategic pivot of major multinational component suppliers and joint ventures between global battery manufacturers and US automakers, all racing to establish a North American footprint. Competition centers on securing IRA-compliant supply chains and achieving economies of scale for high-volume, high-power components.

• LG Energy Solution (LGES): This company has secured a significant position through strategic joint ventures (JVs) with major US automakers. Its strategy focuses on establishing multiple US-based gigafactories to supply a guaranteed pipeline of battery cells and modules for passenger and commercial vehicle platforms, directly addressing the IRA's domestic manufacturing imperative.
• Panasonic Energy Co., Ltd.: Panasonic maintains its positioning as a key technology partner, particularly through its long-standing relationship with a leading US EV manufacturer. Its competitive advantage is rooted in advanced cell technology, focusing on high-density cells, and its commitment to US production expansion to secure its domestic market share for battery components.
• SK On: Leveraging multiple planned and operational US facilities, SK On employs an aggressive capacity expansion strategy, often through JVs, to serve a diversified portfolio of major US and European automakers. Its positioning is built on securing vast production capacity within North America to become a central supplier of next-generation battery components.

Recent Market Developments

• January 2025: U.S. Department of Energy (DOE) Funding: The DOE announced nearly $13 million to incentivize smart manufacturing at small- and medium-sized facilities, which is a key capacity-building effort supporting US component production scaling.
• February 2024: Hyundai-Kia Production Start: Hyundai-Kia announced plans to begin manufacturing operations at a new Georgia-based factory in 2024, a move designed to qualify its vehicles for IRA benefits by securing a North American final assembly point and thus boosting demand for locally sourced components.
• August 2022: Inflation Reduction Act Enacted: The enactment of the IRA provided $369 billion for climate and clean energy policies, directly linking consumer tax credits to North American battery component and assembly requirements, fundamentally reorienting the US supply chain strategy.

US Electric Vehicle Components Market Segmentation

BY COMPONENT TYPE

• Battery Pack
• Electric Motor
• Power Electronics
• Inverter
• Converter (DC-DC)
• On-Board Charger
• Thermal Management System
• Body & Chassis
• Other Components

BY VEHICLE TYPE

• Passenger Cars
• Commercial Vehicles
• Two-Wheelers & Three-Wheelers

BY TECHNOLOGY

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)
• Fuel Cell Electric Vehicle (FCEV)

BY END-USER

• OEMS
• Aftermarket

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK 

5.  UNITED STATES ELECTRIC VEHICLE COMPONENTS MARKET BY COMPONENT TYPE  

5.1. Introduction

5.2. Battery Pack

5.3. Electric Motor

5.4. Power Electronics

5.5. Inverter

5.6. Converter (DC-DC)

5.7. On-Board Charger

5.8. Thermal Management System

5.9. Body & Chassis

5.10. Other Components

6.  UNITED STATES ELECTRIC VEHICLE COMPONENTS MARKET BY VEHICLE TYPE  

6.1. Introduction

6.2. Passenger Cars

6.3. Commercial Vehicles

6.4. Two-Wheelers & Three-Wheelers

7.  UNITED STATES ELECTRIC VEHICLE COMPONENTS MARKET BY TECHNOLOGY  

7.1. Introduction

7.2. Battery Electric Vehicle (BEV)

7.3. Plug-in Hybrid Electric Vehicle (PHEV)

7.4. Hybrid Electric Vehicle (HEV)

7.5. Fuel Cell Electric Vehicle (FCEV)

8.   UNITED STATES ELECTRIC VEHICLE COMPONENTS MARKET BY END-USER   

8.1. Introduction

8.2. OEMS

8.3. Aftermarket

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Robert Bosch GmbH 

10.2. Contemporary Amperex Technology Co., Ltd. 

10.3. Proterra 

10.4. Tesla 

10.5. Ultium Cells LLC 

10.6. BorgWarner 

10.7. A123 Systems 

10.8. Imperium3 New York 

10.9. Panasonic Corporation 

10.10. Denso Corporation 

10.11. MAHLE GmbH 

11. APPENDIX

11.1. Currency 

11.2. Assumptions

11.3. Base and Forecast Years Timeline

11.4. Key benefits for the stakeholders

11.5. Research Methodology 

11.6. Abbreviations 

Companies Profiled

Robert Bosch GmbH 

Contemporary Amperex Technology Co., Ltd. 

Proterra 

Tesla 

Ultium Cells LLC 

BorgWarner 

A123 Systems 

Imperium3 New York 

Panasonic Corporation 

Denso Corporation 

MAHLE GmbH 

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