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
Jul 12, 2024 - Prices Fall, Wages Up
- Producer prices for battery manufacturers fell 1% in May 2024 compared to a year ago, according to the latest data from the Bureau of Labor Statistics (BLS). While trending down in late spring, prices have grown 16.7% overall since 2019. Employment by battery manufacturers fell 2.5% in May 2024 year over year, marking the third consecutive month of declines year over year. Wages at other electrical equipment and components manufacturers rose 5.6% in May 2024, reaching $25.36 per hour.
- US manufacturing activity contracted in June 2024 for the third consecutive month after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 48.5% in June, down 0.2 percentage points from the 48.7% recorded in May. A reading above 50% indicates manufacturing expansion. Prior to the uptick in March, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. June’s New Orders Index was in the contraction zone at 49.3%. The June Production Index was 48.5%, a decrease from May’s 50.2%. Eight manufacturing industries tracked by the ISM reported growth in June: Printing & Related Support Activities; Petroleum & Coal Products; Primary Metals; Furniture & Related Products; Paper Products; Chemical Products; Miscellaneous Manufacturing; and Nonmetallic Mineral Products. The industries reporting contraction in June were Textile Mills; Machinery; Fabricated Metal Products; Wood Products; Transportation Equipment; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; and Computer & Electronic Products.
- The US battery manufacturers industry is projected to grow at a CAGR of 2.4% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy's anticipated growth. Factors that continue to limit consumer spending are higher price levels and interest rates, though both are expected to improve in 2024. The battery industry is expected to benefit from the $750 billion Inflation Reduction Act, which supports domestic production of wind, solar, and battery technologies. The forecast noted that investment in manufacturing structures reached an all-time high in 2023, with recent spending more than double the average recorded between 2011 and 2021. Consumer confidence levels are expected to improve in the forecast window, which bodes well for durable manufacturing industries. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
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