This is because the power tool market used to be mainly NiCd. NiCd is safe. So no one had to worry about the liability problems connected with a battery suddenly bursting into flames. Third party manufacturers were able to make a good replacement battery without worrying that they were covered for unforeseen injuries and damage - even if they were very careful. And since the power tool market was, and is, growing we needed the non-name brand market to fill the great demand for replacement batteries.
But nowadays almost every power tool is made to be used with a Li-Ion battery. And there is a good reason for this. Li-Ion batteries are lighter and have a higher voltage so they can deliver more power in a smaller lighter package. What's not to like?

But third party makers are a little skittish because they don't have a reputation with the courts. And they would rather not add insurance to the cost of their product because they are competing on cost. So non-name brand power tool battery manufacturers just aren't getting into the game.
Even re-builders are not as prevalent in the Li-Ion market. These are companies that put new cells into the cases of power tool batteries that have worn out. The equation is simple and the liability doesn't pay.
So what are we to do? We live with it. The name brand manufacturers are competing with each other, so that helps. The next possibility is to use LiFePO4 chemistry because it is safe. But I guess until Milwaukee/DeWalt/Ryobi/Rigid/Makita/Bosch/AEG have a "Note 7" event, it doesn't look like that will happen.
I'm going to guess that an improved capacity less expensive cell will come out of the lab and the power tool manufacturers will start to use it. And if it is as safe as NiCd, the off-brand market will recover.
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