When many people hear about batteries today, they tend to think of the large, heavy batteries needed to power electric vehicles (EVs) or the small batteries used to power smartphones and other digital devices. In between, however, are the myriad types of low-voltage batteries that make our world run. The Wisconsin-based battery company Clarios, which produces such batteries, has just announced a $6 billion expansion of operations and investments over the next decade.
Clarios serves customers worldwide and has more than fifty facilities across the globe, staffed by over 18,000 employees. Sixteen of these facilities, and almost 6,000 employees, are in the United States and Canada, including at the headquarters in Glendale, Wisconsin. The name Clarios may not be widely known to consumers in the United States, but the company produces the popular The Battery Shop YouTube channel. This resources helps drivers with their battery issues, including how to replace the battery in many popular vehicle models like the Jeep Grand Cherokee and Ford Explorer.
Low-Voltage Batteries are Critical to Motor Vehicles, Solar
Half of all U.S. vehicle batteries are made and distributed by Clarios under the brand names DIeHard, Duralast, AC Delco, and several others. Similar batteries by the same companies are also used to start and power the systems of boats, recreational vehicles, airplanes, and even military equipment. Clarios has some fifty active U.S. Defense Department contracts to provide electrical components for military vehicles, establishing it as a major supplier of the nation’s armed forces. Worldwide, one in three vehicles uses a Clarios battery.
With more drivers turning to electric vehicles today, Clarios is likely to remain robust in the market because it also supplies EV batteries. The company also produces batteries specifically for hybrid vehicles, meaning it supplies the entire range of passenger vehicles with electrical systems. Therefore, Clarios is well-positioned to remain a top producer of vehicle electrical systems, as it can shift resources in whichever direction consumers are buying.
Improved Battery Recycling Reduces Need for Imported Minerals
The hefty investment by Clarios over the next 10 years includes almost $2 billion for improved battery recycling, which is both environmentally friendlier than producing new batteries and helps reduce America’s reliance on imported rare earth minerals. Clarios posits that its new investment will allow it to recover almost 100 percent of used battery materials, significantly reducing America’s reliance on foreign suppliers for batteries. This is considered a national security benefit, as a geopolitical conflict could cause battery shortages if foreign supply chains are disrupted.
With tariffs increasing between the United States and several trading partners, especially China, the cost of imported batteries will rise. China is a significant source of imported batteries, and allegedly even undercharges for them to push other battery producers out of the U.S. market. Tariffs may convince consumers of lithium-ion batteries to shift to domestic producers like Clarios, whose United States production is expanding. It has also recently expanded its production in western Europe, specifically in Germany, France, and Spain, which assists our key geopolitical allies.
Image credit: Milwaukee Business Journal
