Batteries and flashlights: Business is booming

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People around the world buy a lot of batteries. In fact, Fortune Business Insights estimates $37 billion worth of consumer batteries will be sold worldwide by the year 2029.

The battery market started growing in 2020, fueled by the pandemic. More workers stayed home, and with a shortage of skilled laborers like plumbers or woodworkers, people turned to DIY projects. Their laptops and power tools required batteries.

A Brief Battery History

So what is a battery, anyway? According to Phys.org, a battery is “essentially a device that stores chemical energy that is converted into electricity.”

National Today reports Benjamin Franklin coined the term “battery” in 1748 when he grouped Leyden jars together to produce electricity.

Alessandro Volta, an Italian physicist, created the first actual battery in 1800. He stacked discs of copper and zinc, each pair separated by cloth soaked in salty water. Wires connected to each end of the discs produced a stable current.

Technology has obviously advanced since then, and giant megawatt batteries now power solar farms and substations, while tiny button-sized batteries enable hearing aids.

Who Needs a Flashlight?

Flashlights are big business around the world. An Industry Research Biz report from LinkedIn estimates the global flashlight market will reach $529.9 million by 2027. Flashlights may be the most familiar item that requires batteries. Any time a disaster alert is issued, officials stress that those in the path of the storm or event should ensure they have a flashlight nearby and extra batteries. They’re also a must for emergency kits, where they can be used to signal for help or find one’s way.

The humble flashlight was first patented in 1899 and is now used in every industry on earth. Users employ flashlights to check for flaws, look for lost items, and add illumination to a dark project — name the industry, career, or lifestyle, and someone in it is using a flashlight for something.

Because flashlights are such a money-maker, it stands to reason that those who buy flashlights will also buy batteries. And with the different kinds of lights available, the range of batteries also runs the gamut. Many manufacturers now even include a first set of batteries in the flashlight package.

LEDs provide the light in most flashlights now. They don’t use the battery power like the old incandescent bulbs did, and they’re brighter for their size. Plus, a standard LED flashlight is inexpensive. They’re available in packs of two at the dollar store. At that price, most people can have one or two in their vehicles, tuck one into a student’s backpack, or even use them for a school science project.

Charging Batteries

Another innovation in battery technology is the advent of the rechargeable consumer battery. Rechargeable batteries have been around for a while. According to Battery University, rechargeable batteries were first invented by French physicist Gaston Planté in 1859.

Since then, rechargeable batteries have been designed and redesigned. The nickel-cadmium (Ni-Cd) rechargeable battery came on the market in 1989, followed by the lithium-ion (Li-ion) version in 1991. Both are commonly used in consumer electronics and other applications.

As with most tech advances, rechargeable batteries and their chargers have decreased in price since their introduction, and a charger that works for AA or AAA batteries, along with the batteries themselves, may cost about USD 30.

Battery chargers have a charging time of about two hours for standard NiCd or nickel-metal hydride (NiMh) batteries.

Even rechargeable batteries have a life cycle, but according to zBattery, most rechargeable batteries last about two to seven years with proper care. Users also need to consider the safety aspect of rechargeables. Some of the safety precautions zBattery recommends include never letting battery ends touch, not mixing the types of batteries in one device, removing batteries from chargers if they are not in use for more than a month, not carrying them loose in a pocket or bag, and not heating or incinerating them.

Making The Battery Industry Pay

With flashlight sales in the millions of dollars every year and consumers buying batteries to power them, are battery companies a good financial risk for ordinary investors?

Jonathan Bird, a Certified Financial Planner and wealth advisor for Farnam Financial, thinks so — but in a particular context. He says, “Solar and wind need energy storage for 24/7 usage which gives battery companies a critical role. As battery companies grow and become profitable, their inclusion in broad index funds is inevitable.”

He also says investors should be careful, “We recommend that investors own EV and battery companies … through their inclusion in broad index funds. Investors should be cautious buying individual stocks and should remember the iron law of capital allocation – what’s smart at one price is dumb at another.”

Prakash Kolli, founder of the blog Dividend Power, offered some thoughts on investing in battery companies, as well. “In the United States, household battery companies have consolidated. There are essentially two choices from an investment perspective: Berkshire Hathaway (BRK.A, BRK.B) and Energizer Holdings, Inc. (EBR). Warren Buffett’s company owns the Duracell business and brand, while Energizer owns its namesake, Eveready, and Ray-O-Vac brands. The two firms control much of the market in America and are leading global producers, too. Investors seeking to buy shares of a battery company will probably be attracted to Berkshire Hathaway because of Buffett, but Duracell is a small fraction of the overall company.”

New Batteries on The Horizon

Technology is ever-changing and moving forward. What’s next for batteries?

According to SAFT, a French battery manufacturer, the future of batteries will probably start with better Li-ion products. These next-generation batteries will be used in energy storage systems, like solar and wind farms, and for transportation, including marine and railway applications.

Saft reports another advancement in battery tech will be in lithium-sulfur batteries (Li-S). Researchers are looking at this battery type as a solid-state electrolyte unit with a much longer battery life. It might be used in aviation and the space industry.

Solid-state batteries are also at the forefront of research. One significant advantage of these batteries is they are not flammable when heated. They are also lighter in weight, making them a good choice for electric vehicles.

Responsible Battery Disposal

Many people simply throw batteries into their household garbage, but the U.S. Environmental Protection Agency (EPA) doesn’t recommend this. Instead the agency tells consumers to recycle their used batteries whenever possible. While standard alkaline batteries can be thrown away in the household trash, many local waste management agencies have a recycle/reclaim program where consumers can drop off their used batteries.

For coin batteries from watches or hearing aids, single-use lithium batteries, Li-ion, and rechargeable batteries; the EPA recommends taking them to the local household hazardous waste recycling facility or electronic device recycling center. Automotive batteries should always be returned to the battery retailer. Do not put them in the household recycling collection.

This article was produced by Media Decision and syndicated by Wealth of Geeks.