Battery Manufacturing

Battery Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture primary (disposable) batteries and storage (rechargeable) batteries for consumer, automotive, and industrial use. Major US companies include East Penn Manufacturing, Energizer, EnerSys, and Exide Technologies; leading companies based outside the US include Foxlink (Taiwan), GP Batteries (Hong Kong), GS Yuasa (Japan), and Johnson Controls (Ireland).

COMPETITIVE LANDSCAPE

Demand depends primarily on the level of activity in the automotive and electronic sectors of the economy.?Personal income?drives new battery purchases in consumer goods, and consumer usage levels drive demand for replacement batteries. Large companies have?economies of scale?in purchasing. Smaller producers compete by focusing on?specialized products?and?customer service. The US industry is highly concentrated: the 50 largest firms account for more than 95% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories are storage batteries (about 60% of industry revenue) and primary batteries (about 30%). Other products include battery parts, larger batteries including communication and standby emergency, and power wires and cables, which account for about 10% of revenue. Storage batteries (also called secondary batteries) are?rechargeable;?primary batteries are discarded after the initial stored energy is consumed. Examples of storage batteries are automotive and laptop computer batteries. Primary batteries include standard dry cell batteries (AA, AAA, C, D, and 9-volt) used in flashlights, radios, remote controls, and a variety of specialty applications, such as hearing aids and implantable medical devices.