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 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

                                    Recent Developments

                                    Mar 8, 2023 - Battery Metal Prices Fall
                                    • Battery makers are seeing lower prices for mineral supplies, due to rising availability and weaker demand, according to the Wall Street Journal. Prices for cobalt in February 2023 were down 61% from January 2022, per Benchmark Mineral Intelligence. Cobalt demand is being affected by multiple factors, including a growing use of lower-cost nickel-rich batteries and a slump in demand for consumer electronics that use cobalt in their batteries. Lithium carbonate prices have seen a price correction of 21% since November, after increasing most of 2022. A December end to the electric vehicle subsidy in China also has had an impact on lithium demand, which was 52% below its three-month moving average, per Goldman Sachs.
                                    • US manufacturing activity contracted in February 2023, falling below the baseline for growth for the fourth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.7 in February, a slight change from the 47.4 recorded in January. A reading above 50% indicates manufacturing expansion. In February, the ISM’s Purchasing Managers Index (PMI) fell to 47.4%, down from 48.4% in January. February’s New Orders Index remained in the contraction zone at 47%. The February Production Index decreased slightly to 47.3%. Of the manufacturing industries tracked by the ISM, four reported growth in February: Apparel, Leather & Allied Products; Transportation Equipment; Petroleum & Coal Products; and Electrical Equipment, Appliances & Components. Fourteen sectors reported contraction, including Computer & Electronic Products, Fabricated Metal Products, Nonmetallic Mineral Products, Plastics & Rubber Products, Primary Metals, Textile Mills, and Wood Products.
                                    • A new “battery passport” concept was introduced by the Global Battery Alliance to track all of the materials used in a battery, according to Electrek. The Global Battery Alliance (GBA) is an industry organization consisting of more than 100 companies in the EV battery supply chain, including mining companies, battery cell makers, and automakers. The GBA aims to establish a sustainable battery value chain by 2030, and the passport is expected to help track the various battery materials. Tesla and Audi were the first two automakers to participate in the battery passport proof-of-concept. The passport will allow consumers to compare the sustainability history of their EV batteries.
                                    • The US Department of Energy (DOE) has announced $42 million in funding to a dozen projects that are expected to strengthen the domestic supply chain for advanced batteries that power electric vehicles through the agency’s “Electric Vehicles for American Low-Carbon Living (EVs4ALL) Program.” The program, which is managed by DOE’s Advanced Research Projects Agency-Energy (ARPA-E), selected the projects from solutions offered by universities, the private sector, and national laboratories. Projects will focus on developing EV batteries that last longer, charge faster, perform better in freezing temperatures, and have better range retention. Per US Secretary of Energy Jennifer M. Granholm, “Electric vehicle sales in America have tripled since the start of this Administration and by addressing battery efficiency, resiliency and affordability, the projects announced today will make EVs attractive to even more drivers.”
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