Why Isn't Duracell or Energizer Producing Electric Car Batteries?
Duracell and Energizer, primarily known for their consumer batteries, have not ventured into the electric vehicle (EV) battery market for several reasons. This article explores the factors behind their lack of involvement in the EV battery sector and discusses the potential for future developments.
Focus on Consumer Batteries
Both Duracell and Energizer have historically focused on small batteries for consumer electronics, household devices, and similar applications. Their expertise and business models are centered around these markets rather than large-scale automotive applications.
High Capital Investment
Manufacturing electric vehicle batteries requires significant capital investment in research, development, and production facilities. Companies like Tesla, Panasonic, and CATL have made these investments, which can be a barrier to entry for companies not already in the automotive battery sector.
Technological Expertise
The technology and chemistry behind EV batteries, such as lithium-ion technology, differ significantly from the alkaline batteries that Duracell and Energizer produce. Entering the EV battery market would require substantial RD to develop competitive products.
Partnerships and Supply Chains
Many established automakers have formed partnerships with specialized battery manufacturers to secure their supply chains. This has created a competitive landscape where new entrants face challenges in establishing themselves.
Market Saturation and Competition
The EV battery market is becoming increasingly crowded with established players. Competing against companies that have years of experience in battery technology and manufacturing poses a significant challenge.
While Duracell and Energizer may not be producing EV batteries now, the landscape can change. They could potentially explore this market in the future if they see a strategic advantage or shift in their business focus.
Energetizer’s Spin-Off and Lithium-Ion Batteries
Energizer is just one of many brands of batteries that were formerly manufactured under its parent conglomerate Johnson Controls. In 2019, Johnson Controls’ Power Solutions spun off into a new company named Clarios, which continues to manufacture a wide array of batteries under many different brands. These batteries include lithium-ion cells used in several hybrid and electric vehicles.
Conclusion
Despite their current focus on consumer batteries, both Duracell and Energizer have the potential to enter the electric vehicle battery market, driven by technological advancements and strategic business decisions.