EnerSys is a leader in stored energy solutions. Based in Reading, Pennsylvania, this company makes batteries, chargers, and accessories for transportation, aerospace, and defense.

Credit: EnerSys

The company was founded in 1991 through a merger of Exide and Yuasa Corp. and has since made several strategic acquisitions to bolster its position in the energy storage industry. Notably, in 2000, Yuasa-Exide Inc. acquired the industrial division of GS Yuasa, and then changed its name to EnerSys. This was followed by a merger with the Hawker Group in 2002. Another significant acquisition was the Energy Storage Products Group of Invensys in 2002. Over the years, EnerSys has expanded its portfolio and global presence through various acquisitions, collaborations, and strategic decisions, solidifying its reputation as a leader in the energy storage domain. The name “EnerSys” signifies the company’s dedication to harnessing and storing energy, providing solutions that power various industries and applications worldwide.

Pioneering Breakthroughs in Stored Energy Solutions

One of the most notable technological innovations from EnerSys was the development of a Thin Plate Pure Lead (TPPL) technology. This battery technology has found applications across a myriad of sectors, including data centers, telecommunications, transportation, materials handling, and logistics. TPPL batteries, with their advanced design, offer unparalleled energy storage capabilities, making them a preferred choice for industries that demand efficient and reliable power solutions.The introduction of TPPL technology by EnerSys marked a significant shift in the energy storage landscape. Before this innovation, industries were often limited by the capabilities of traditional battery technologies, which could not meet the increasing demands for energy efficiency and longevity. With TPPL batteries, industries found a solution that not only offered longer life cycles but also ensured consistent performance under varying operational conditions.

From powering data centers that form the backbone of the digital world to ensuring uninterrupted operations in telecommunications, TPPL batteries have become synonymous with reliability. In the realm of transportation and logistics, these batteries aim to ensure that vehicles and equipment run efficiently, reducing downtime and operational costs. Furthermore, the versatility of TPPL technology has enabled EnerSys to cater to specific industry needs. For instance, in the telecommunications sector, where consistent power supply is crucial, TPPL batteries offer the resilience and reliability required to maintain network operations, even in challenging conditions.

Today, EnerSys boasts a diverse product portfolio tailored to meet the demands of various industries. Some of the firm’s prominent products include reserve power batteries, designed to provide power in the event of an outage. These are crucial for sectors like telecommunications, where consistent power is essential. Brands like PowerSafe®, DataSafe®, and Cyclon® are part of this category. Motive power batteries cater primarily to electric vehicles and industrial machinery, and these batteries provide the necessary power to keep operations running smoothly. Notable brands in this segment include Hawker®, NexSys®, and Ironclad®. In addition, EnerSys offers a range of chargers and accessories to ensure optimal performance and longevity of their products. Finally, EnerSys also produces batteries for specific applications, such as aerospace and defense, ensuring that even in the most critical situations, power remains uninterrupted. EnerSys is a dominant player in several product categories. Brands like PowerSafe® and Hawker® are industry frontrunners, known for their reliability and performance.

Truck iQ smart battery dashboard, credit: EnerSys

Research and Development

EnerSys’s approach to innovation is deeply rooted in its commitment to addressing the world’s growing energy demands. EnerSys products are not just energy storage solutions; they are sustainability products. In 2022 alone, the company produced more than 13 GWh of energy storage capacity, ensuring safe, affordable, and clean power for industries and people worldwide. This commitment to innovation is further evidenced by the company’s significant investment in R&D, with over $3.8 million allocated in 2022 to foster continuous improvement, enhance safety, and develop innovative new technologies. EnerSys’s Specialty Global segment engineers advanced, reliable energy storage solutions tailored to the unique needs of industries like long-haul trucking, aerospace, and climate resilience. These specialized solutions, powered by advanced lithium technologies and TPPL technology, underscore EnerSys’s commitment to pushing the boundaries of what’s possible in energy storage.

In the last five years, EnerSys has unveiled a series of groundbreaking products setting new standards for performance, efficiency, and sustainability. EnerSys expanded its NexSys® iON Lithium-ion battery line with the introduction of an 80 Volt model. This high-performance battery is designed for fast recharge, extended run times, and offers a high energy capacity in a compact design. It’s particularly beneficial for heavy-duty applications, especially for industries transitioning from LP- and diesel-fueled equipment to meet sustainability goals. In Jul of this year, EnerSys received full integration approval for its NexSys® TPPL battery technology across all equipment from the Hyster-Yale Group that comes equipped with Hyster Power Cellect™ or Yale Power Key™. This integration signifies the adaptability and compatibility of EnerSys’ products with leading industrial equipment. In June of this year, EnerSys and Verkor collaborated to explore the development of a Lithium-ion battery factory in the United States. This partnership underscores EnerSys’ commitment to expanding its lithium-ion battery production capabilities, catering to the growing demand for these batteries in various applications.

Commitment to a Sustainable Future

With over a century of experience in manufacturing energy storage and systems, EnerSys aims to be a global leader in the domain. EnerSys, through its products and ongoing research, aims to advance and accelerate the viability of a low-carbon economy. This Knowledge Leader’s energy storage solutions maximize the reliability of energy generated from renewable sources, even during peak demand. The firm actively supports global initiatives like RE100, which brings together influential businesses committed to 100% renewable energy.

Ironclad Deserthog, credit: EnerSys

Synergy for Success

EnerSys understands the importance of strategic partnerships in driving innovation and expanding its reach. The firm is engaged in some notable collaborations and partnerships. EnerSys achieved a significant milestone by receiving full integration approval for its NexSys® TPPL battery technology across all equipment from the Hyster-Yale Group equipped with Hyster Power Cellect™ or Yale Power Key™. This collaboration underscores the adaptability and compatibility of EnerSys’ products with leading industrial equipment manufacturers. EnerSys joined forces with Verkor to explore the development of a Lithium-ion battery factory in the United States. This partnership signifies EnerSys’ commitment to expanding its lithium-ion battery production capabilities, catering to the growing demand for these batteries in various applications. EnerSys expanded its motive power service offerings in the UK by acquiring Industrial Battery and Charger Services Limited. This acquisition not only strengthens EnerSys’ position in the UK market but also broadens its service capabilities, offering a more comprehensive range of solutions to its customers. EnerSys is actively supporting global initiatives like RE100, which brings together influential businesses committed to 100% renewable energy. By aligning with such initiatives, EnerSys is playing a role in promoting the use of renewable energy sources and ensuring a sustainable future.

This Knowledge Leader spotlight was generated using our AI engine with a series of prompts custom-developed by Knowledge Leaders Capital and designed to uncover the innovation strategies of companies we consider to be Knowledge Leaders. We have edited it for content, style, and length.

The following sources are examples of sources that may have been consulted in the preparation of this spotlight:

• EnerSys Official Website
• Macrotrends
• Wikipedia: EnerSys

 As of 6/30/23, none of the securities mentioned were held in the Knowledge Leaders Strategy.

The information contained in our “Spotlights” is provided for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the securities or products mentioned and is not intended to be investment advice. Knowledge Leaders Capital may deviate from the investments or strategies implementation as discussed in the “Spotlights” and the opinions expressed therein are subject to change at any time for any reason without notice. Knowledge Leaders Capital makes no representations that the contents are appropriate for use in all locations, or that the transactions, securities, products, instruments, or services discussed are available or appropriate for sale or use in all jurisdictions or countries, or by all investors or counterparties. The reader should not assume that companies identified and discussed were or will be profitable.

The Knowledge Leaders investment process uses a proprietary methodology based on academic research. To create an intangible-adjusted financial history, we capitalize intangible investments—including R&D, advertising, brand development and employee training expenses—treating them as a company would tangible investments. Using these intangible-adjusted financial histories, we run each company through a proprietary Knowledge Leader screen. Companies that pass through every level of the screen emerge as Knowledge Leaders.

Past performance or historical trends are not necessarily indicative of future results.

Companies are selected for “Spotlights” based on high levels of innovation activities in their respective industries and illustrate innovation being employed across all sectors and geographies. Spotlight selection is separate from stock selection by the investment team. Spotlights are not necessarily representative of investment opportunities and can be selected regardless of investment performance or inclusion as a KLC holding.