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 194 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 194 firms that employ about 28,700 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
Mar 6, 2024 - Producer Prices, Wages Higher
- Producer prices for battery manufacturers increased slightly around midyear in 2023 and remained consistent throughout the second half of the year, according to the Bureau of Labor Statistics (BLS). Overall, producer prices were slightly higher in December 2023 than the previous year and 18% higher in 2023 compared to 2019. Employment in the industry rose in the summer of 2023 but then fell slightly in Q4. Wages have increased in a tight labor market, reaching an average of $27 an hour in Q4 2023, per the BLS. Wages have grown 23% from December 2019 to December 2023.
- US manufacturing activity contracted in February 2024, falling below the baseline for growth for the sixteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.8% in February, down 1.3 percentage points from the 49.1% recorded in January. A reading above 50% indicates manufacturing expansion. February’s New Orders Index was in the contraction zone at 40.2%. The February Production Index was 48.4%, a decrease from January’s 50.4%. Eight manufacturing industries tracked by the ISM reported growth in February: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; and Transportation Equipment. The industries reporting contraction in February were Furniture & Related Products; Machinery; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; and Electrical Equipment, Appliances & Components.
- Battery manufacturers will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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