Lithium Battery Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Heavy investments in research and development will foster industry growth. For this reason, industry research firm IBISWorld has added a report on the Lithium Battery Manufacturing industry to its growing industry report collection.

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As technology improves, industry demand and production will continue to rise

The Lithium Battery Manufacturing industry is expected to more than double in size over the five years to 2015. Prior to the five-year period, US lithium and lithium-ion production comprised battery manufacturers catering to niche markets, such as defense contractors building advanced electronics and weaponry. Government incentives and improving technology, however, have spurred automobile manufacturers to begin producing lithium-ion batteries domestically. As a result, industry revenue is expected to grow an annualized 16.4%, reaching $3.1 billion during the period.

Lithium and lithium-ion batteries compete with batteries composed of alternative compounds. While lithium-ion batteries have become the defacto choice for electric automobile manufacturers due to its superior energy performance, the high price of lithium-ion batteries has limited demand and electric vehicle production. To expand the potential market for lithium-ion batteries, government organizations and industry players have invested heavily in research and development. These initiatives have decreased production costs and, as a result, electric car sales have grown considerably over the past five years. In 2010, Nissan launched the Leaf as the first mass-produced car in the United States. Other automobile manufacturers have followed suit, more than doubling industry revenue over the period. Production is expected to continue rising through 2015, boosting revenue 16.7% during the year.

Industry demand and production will continue to rise over the five years to 2020, with revenue projected to rise an annualized 16.3% to $6.5 billion. As a growing industry with heavy government assistance, research and development is expected to continue reducing production costs, allowing companies to sell batteries at a lower price while maintaining profit. Lower battery prices are anticipated to translate to improved downstream demand and expansion into previously untapped markets. However, industry projections hinge on a number of potential threats and initiatives. China is investing heavily in lithium-ion battery production and, through heavy subsidies and grants, could potentially flood the market with an oversupply of lithium-ion batteries, forcing operators to lower their prices and reducing revenue. If Tesla's factory were completed by 2020, US lithium-ion production would exceed current global production levels and establish the United States as the world leader in lithium-ion battery production.

For more information, visit IBISWorld’s Visual Arts Schools in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures primary and secondary batteries that use lithium as an anode. Industry products are most commonly used in vehicles and electronic devices such as cell phones, cameras, laptops, pacemakers and toys.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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