Battery Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 208 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.
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 for electric vehicles (EV).
Variable Raw Material Cost and Supply
The cost and supply of raw materials can vary and affect profitability for battery manufacturers.
Industry size & Structure
The average primary battery manufacturer employs fewer than 100 workers and generates $32 million annually, while the average storage battery manufacturer employs fewer than 50 workers and generates $60 million annually.
- The battery manufacturing industry consists of about 208 firms that employ about 51,000 workers and generate $10 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.
Industry Forecast
Battery Manufacturers Industry Growth
Recent Developments
Jan 11, 2025 - Challenges in Raw Materials Availability
- 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.
- Battery manufacturers are monitoring the possibility of higher import tariffs and the uncertain fate of the Inflation Reduction Act under proposals from US president-elect Donald Trump, according to Utility Dive. While President Joe Biden’s $750 billion Inflation Reduction Act has supported domestic production of wind, solar, and battery technologies, Trump has criticized the Inflation Reduction Act and said he would terminate it upon taking office. In addition, Trump has proposed a universal 10-20% tariff on imports from all countries and an additional tax on imports from China of up to 60%. Currently, the Biden administration has a 25% tariff on Chinese-made battery materials and components set to phase in through 2026.
- According to a report in EE Power, battery manufacturers are expanding capacity worldwide to meet the rising demand for data center power applications, energy storage, and electric vehicle charging capacity. Recent projects include two gigafactories in the US and Europe, a battery innovation center in the US, and a cobalt sulfate refinery in Canada. Natron Energy is planning a $1.4 billion, 1.2 million-square-foot gigafactory for sodium-ion batteries in eastern North Carolina, aimed at meeting increasing demand for EV charging, grid storage systems, and data center backup power. Morrow Batteries recently opened Europe’s first gigawatt-scale lithium iron phosphate battery plant in Norway, manufacturing batteries for energy storage and heavy-duty mobility applications. Chemours has opened a battery innovation complex in Newark, Delaware, to test next-generation lithium-ion battery technologies. Canada-based Electra Battery Materials is building a hydrometallurgical cobalt sulfate production plant in Ontario, which will be North America’s first refinery for cobalt sulfate, the active ingredient in lithium-ion batteries.
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