Battery Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 190 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 battery manufacturer employs 160 workers and generates $51 million annually.

    • The primary battery manufacturing industry consists of about 60 firms that employ about 5,300 workers and generate $2 billion annually. The storage or secondary battery industry consists of about 130 firms that employ 24,500 workers and generate $7.5 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, Exide Technologies, and New Power, 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
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 29, 2022 - Surge in Battery Installations
                                    • US developers of large-scale energy storage stations installed more batteries in 2021 than ever before — a trend that appears poised to continue, according to S&P Global Market Intelligence. Developers added 1,335 MW of new power storage capacity in the fourth quarter, exceeding the previous two years combined, and energized more than 3,000 MW in 2021. That surge pushed cumulative installed nonhydroelectric storage capacity to 5,410 MW entering 2022 and marked the start of a multi-gigawatt annual market. About 25 GW is planned to come online through 2023, including 9.4 GW in 2022 and 15.6 GW in 2023. California and Texas led the nation in energy storage with nearly 3 GW of power storage capacity online entering 2022 and about another 20 GW planned, according to S&P.
                                    • President Biden in March 2022 invoked the Defense Production Act (DPA) in support of the processing of minerals and materials needed to build batteries for electric vehicles, defense systems, and other technologies. The action was taken to secure US supply chains and bring new mines and mineral processing online. The DPA gives the government more avenues to provide support for the mining, processing, and recycling of critical materials such as lithium. The secretary of defense will conduct a survey of the domestic industrial base for critical minerals for submission to the President and Congress.
                                    • Battery manufacturers are closely watching the collaboration and efforts by the Departments of Energy and Labor on an initiative to train Americans for jobs in the battery manufacturing industry. In March 2022, the agencies announced their lithium-battery workforce initiative, which has a budget of $5 million and will support up to five pilot programs. The goals of the initiative are to strengthen the domestic economy, make the US more competitive in battery manufacturing, and build the nation’s clean energy supply chain.
                                    • US investment in energy transition, which includes battery storage, reached $114 billion in 2021, up 17% from a year earlier, according to Bloomberg NEF. The US investment was second only to China at $266 billion. The transition is away from fossil fuels, like oil and coal, and toward clean energy with net-zero emissions, like solar and wind power.
                                    • Lithium producers in China and South Africa are hesitant to ramp up operations because of the ongoing logistical challenges, according to energy research and business intelligence company Rystad Energy. “Producers appear reluctant to sell significant volumes on the spot market, as supply constraints and the ongoing logistical issues caused by the pandemic create bottlenecks in the trading market for lithium salts,” a January 2022 report from the company says. This is likely to affect the price of EV battery packs. According to Bloomberg NEF, lithium-ion battery pack prices could rise to $135 per kilowatt-hour in 2022 from $132 in 2021.
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