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Battery Manufacturing
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US battery manufacturing industry includes about 125 companies with combined annual revenue of about $8 billion. Major companies targeting the consumer sector include Energizer Holdings, Procter & Gamble (Duracell), and Spectrum Brands (Rayovac); Enersys, Exide Technologies, and the battery division of Johnson Controls are among the leaders in the automotive and industrial sector. The industry is highly concentrated: the largest eight companies account for about 75 percent of revenue and the largest 50 account for more than 95 percent.
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.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are storage batteries (65 percent) and primary batteries (35 percent). 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...
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