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

                                    Dec 5, 2022 - Accelerated BEV Growth
                                    • Electric vehicles are expected to make up about 30% of new car sales in the United States by 2030, with EVs making up nearly 10% of the of cars and light trucks expected on US roads in 2030, according to the 2022 Joint EV Trends and Outlook Forecast commissioned by the Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association. Notably, the forecast shows that the battery electric vehicles (BEVs) share of vehicles in operation is growing faster than expected and the purchase price of BEVs is expected to reach parity with vehicles powered by internal combustion engines (ICE) as soon as 2024. By 2030, as battery prices continue to drop, the total cost of ownership for BEVs is expected to be more consumer friendly relative to ICE vehicles.
                                    • Energy storage costs in the United States grew 13% from Q1 2021 to Q1 2022, a new cost benchmarking analysis from the National Renewable Energy Laboratory (NREL) found. For standalone energy storage, NREL said that the costs benchmark grew 2% year over year for residential systems to $1,503 per kilowatt-hour (kWh) and 13% for utility-scale to $446/kWh. For solar-plus-storage, the modeled market price (MMP) benchmark for residential systems grew 6% year over year to $38,295, while utility-scale costs grew 11% to a benchmark of $195 million. Commercial was $1.44 million. Within solar-plus-storage, the MMP benchmark is 13-15% higher than the MSP for all three segments, according to NREL’s US Solar Photovoltaic System and Energy Storage Cost Benchmarks, With Minimum Sustainable Price Analysis: Q1 2022‘ report.
                                    • In the first major test for some solar-powered communities in hurricane-prone Florida, some neighborhoods near Fort Myers and Tampa kept their lights on when Hurricane Ian smashed into the state in September 2022, The Wall Street Journal reported. At least three neighborhoods powered by solar panels with backup batteries weathered the Category 4 storm, utilities and developers told WSJ, keeping the lights on throughout Ian while millions of others lost power. Some of the communities also had hardened electrical infrastructure, including buried power lines and stronger utility poles, that helped them keep the power on. While no power system is stormproof, in recent years, some solar infrastructure has weathered hurricanes unscathed while others sustained damage – a continuing area of study for the National Renewable Energy Laboratory.
                                    • Some 5 gigawatt hours (GWh) of utility-scale battery energy storage was deployed in the United States in the first half of 2022, up one third, while wind and solar fell 50-70%, according to American Clean Power (ACP). ACP said that 14 new storage projects were installed in the second quarter totaling 992MW/2,468MWh of new battery storage capacity, up 13% year-on-year. The largest project by power installed in Q2 was Vistra’s DeCordova Energy Storage Facility in Texas, a one-hour 260MW system that is the state’s largest, while the largest by capacity was the 800MWh Diablo Energy Storage developed by LS Power in California, according to Energy Stores News. These installations mean that by the end of June, the US’s cumulative utility-scale battery storage deployments totaled 6,471MW of power and 16,792MWh of energy capacity. While battery storage deployments grew over the first half of the year, overall clean power deployments fell by 25%, ACP said, the largest drop in installations over a six-month period since 2018.
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