Battery Manufacturing
Description
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).
The global battery market is expected to reach about $700 billion by 2034, with a compound annual growth rate (CAGR) of 16.63% from 2025 to 2034, according to Precedence Research. An increase in the use of consumer electronics powered by rechargeable batteries, as well as demand for electric vehicles, is expected to drive revenue growth.
The US battery manufacturing industry includes about 230 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
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 45% of industry revenue) and primary batteries (about 20%). Other products include motive-power type lead acid storage (about 10%), parts for all storage batteries, and other nonferrous metals and alloys. 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.
Raw materials include heavy metals such as lead, nickel, and zinc. These materials are bought new or from battery recycling centers and other collection and processing centers. While the shape, size, and materials of batteries may vary, they all use the same basic electrochemical process. Dissimilar metals act as negative and positive poles in the presence of an electrolyte, creating a reaction where electrons gather on the poles. These electrons are released in the form of electrical current when they contact an external conduit such as a wire.
Common battery types are lead-acid (automotive); alkaline (common dry cell); zinc-carbon (common AA, C, or D); nickel-cadmium (premium AA, C, or D); lithium-ion (laptops and cell phones); metal-chloride (electric vehicles such as golf carts and forklifts); and nickel-metal hydride (hybrid autos). The terms "dry cell" or "wet cell" refer to whether the electrolyte is solid or liquid. Voltages and currents are controlled by the materials used and the configuration of individual cells within a battery.
Battery manufacturing is quite varied depending on the configuration, raw materials, and intended end use, but generally follows a similar process. One of the most popular batteries is the alkaline dry cell battery. To manufacture alkaline-manganese dry cell batteries, a steel can that functions as the cathode (positive electrode) is first cleaned and degreased. A conductive film is then sprayed on the inside surface to ensure good electrical conductivity. Next, a mixture of manganese dioxide and carbon is inserted as a solid ring with a center opening into the can to complete the cathode. A cylindrical separator made of plastic is then inserted and the center opening filled with an electrolyte. A gel of zinc particles and an alkaline solution are inserted in the center as the material for the anode (negative electrode). A cap, known as the current collector, is put in place and functions as the anode terminal.
After assembly, the battery is sealed to prevent leakage and drying, then labeled and inspected for proper voltage, current, and appearance. Most batteries are standard products and are built to stock. However, some specialty applications, such as a power system for an urban rapid transit system, may be a one-of-a-kind design and can be very large and expensive.
The global battery market is expected to reach about $700 billion by 2034, with a compound annual growth rate (CAGR) of 16.63% from 2025 to 2034, according to Precedence Research. An increase in the use of consumer electronics powered by rechargeable batteries, as well as demand for electric vehicles, is expected to drive revenue growth.
The US battery manufacturing industry includes about 230 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
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 45% of industry revenue) and primary batteries (about 20%). Other products include motive-power type lead acid storage (about 10%), parts for all storage batteries, and other nonferrous metals and alloys. 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.
Raw materials include heavy metals such as lead, nickel, and zinc. These materials are bought new or from battery recycling centers and other collection and processing centers. While the shape, size, and materials of batteries may vary, they all use the same basic electrochemical process. Dissimilar metals act as negative and positive poles in the presence of an electrolyte, creating a reaction where electrons gather on the poles. These electrons are released in the form of electrical current when they contact an external conduit such as a wire.
Common battery types are lead-acid (automotive); alkaline (common dry cell); zinc-carbon (common AA, C, or D); nickel-cadmium (premium AA, C, or D); lithium-ion (laptops and cell phones); metal-chloride (electric vehicles such as golf carts and forklifts); and nickel-metal hydride (hybrid autos). The terms "dry cell" or "wet cell" refer to whether the electrolyte is solid or liquid. Voltages and currents are controlled by the materials used and the configuration of individual cells within a battery.
Battery manufacturing is quite varied depending on the configuration, raw materials, and intended end use, but generally follows a similar process. One of the most popular batteries is the alkaline dry cell battery. To manufacture alkaline-manganese dry cell batteries, a steel can that functions as the cathode (positive electrode) is first cleaned and degreased. A conductive film is then sprayed on the inside surface to ensure good electrical conductivity. Next, a mixture of manganese dioxide and carbon is inserted as a solid ring with a center opening into the can to complete the cathode. A cylindrical separator made of plastic is then inserted and the center opening filled with an electrolyte. A gel of zinc particles and an alkaline solution are inserted in the center as the material for the anode (negative electrode). A cap, known as the current collector, is put in place and functions as the anode terminal.
After assembly, the battery is sealed to prevent leakage and drying, then labeled and inspected for proper voltage, current, and appearance. Most batteries are standard products and are built to stock. However, some specialty applications, such as a power system for an urban rapid transit system, may be a one-of-a-kind design and can be very large and expensive.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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