SIC 3691 Storage Batteries

SIC 3691

This category is comprised of establishments primarily engaged in manufacturing storage batteries, including alkaline cell storage batteries, rechargeable batteries, lead acid storage batteries, nickel cadmium storage batteries, and other types of storage batteries.

NAICS CODE(S)

335911

Storage Battery Manufacturing

INDUSTRY SNAPSHOT

The storage battery industry is driven by industry needs for small, long-lasting, cost-effective storage, or rechargeable, batteries. Batteries have been named as the limiting factor in the design of products ranging from laptop computers to electric automobiles. They are important in supplying starting and lighting power for conventionally fueled vehicles; supplying emergency power for various applications; for load-leveling or supplying additional power during peak demand as part of electrical utility systems; and as a supplement to solar, wave, or wind power. By the mid-2000s they also were being widely used for handheld electronic products such as digital cameras. Uninterruptible power supply systems, usually designed to combat drops in power for personal computers (PCs), have created a new market for storage batteries.

In all of these applications, the main feature of the storage battery is that it can retain energy supplied from an external electrical charge, whereas the electrochemical reaction within primary batteries cannot be reversed. The total value of storage battery industry shipments was $3.24 billion in 2003. The market was being driven by the need for batteries to power high-drain electronic devices, such as digital cameras.

ORGANIZATION AND STRUCTURE

Approximately 130 major U.S. establishments competed in the storage battery industry in the mid-2000s. Of those, the 35 percent of establishments that employed more than 250 employees accounted for 70 percent of the industry's revenues. The overall market was dominated by large manufacturers such as Duracell International and Rayovac Corp., and by companies specializing in SLI (starting, lighting, and ignition) and industrial storage batteries, such as Exide Corp. and Gates Energy Products. These latter companies gained market share through acquisitions of related manufacturers since the earliest days of the industry.

BACKGROUND AND DEVELOPMENT

Credit for the invention of the first true storage battery has been given to Gaston Plant, for a lead-acid battery he developed in 1859. It was made of two coiled lead strips separated by a cloth. However, his storage battery required charging by primary cells, a process taking months to years. The introduction of the French "Faure Electric Accumulator" two decades later generated excitement in Europe, Great Britain, and the United States. It was conceived that the devices would be delivered to homes and businesses daily, like milk deliveries. Demand for electric, rather than gas, streetlights was strong from the beginning, and electrical lighting in the home gradually became a status symbol. However, similar designs of batteries patented by Faure, a Frenchman, and American Charles Brush resulted in patent litigation, which paralyzed American storage battery manufacturers for four years.

Electricity was not readily available on a large scale until the 1880s. This gave impetus to the development of storage batteries, used for over 35 years while alternating current systems were being developed and perfected. The batteries used were large enough to power more than 2 million homes for an hour. Although AC power began to carry more of the load, storage batteries continued to be used in the operation of electrical switches in power networks. The appearance of "horseless carriages" in the 1890s also fueled demand for storage batteries.

In the early days of the automobile, storage batteries were seriously considered as an alternative to horses and internal combustion engines. Storage batteries powered racing horseless carriages and electric cabs. However, the batteries could not compete in long distance travel and use declined...

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