Market for lithium batteries growing at impressive rates

Until 10 years ago, the U.S. battery market was considered mature, and nickel cadmium batteries dominated. Since then, improved lithium batteries have helped spark a dramatic revolution in performance and revenue.

According to a soon to be released study from Business Communications (www.bccresearch.com), the U.S. lithium battery material market is estimated at more than $1.9 billion in 2001. The study, “Lithium Batteries: Markets and Materials,” stated that this market is expected to total nearly $3 billion by 2006, growing at an average annual growth rate (AAGR) of 9% during the forecast period. A higher AAGR of 10% is anticipated between 2006 and 2010, thereby pushing the market across $4.8 billion by 2010. (See graph below.)

U.S. Lithium Battery Sales, 2001-2006

Other results of the study:

The market for non-rechargeable (primary) lithium batteries is estimated at $327 million in 2001 and is expected to grown at an AAGR of 2.5% to reach $370 million in 2006.

The largest and fastest growing market is that for rechargeable (secondary) lithium batteries. Currently estimated at $1.6 billion, this market is likely to reach nearly $2.6 billion in 2006 as it grows at an AAGR of 10.1%.

Because many lithium batteries currently are manufactured in Japan, most leading lithium material companies are concentrated in the Far East. As more U.S. companies begin to manufacture lithium batteries, they will have to develop domestic material sources. This shift from Far East to U.S. sources will accelerate as the value of the lithium battery market grows. This will be a significant opportunity for companies that now produce lithium battery chemicals for applications other than batteries.

The study added that there are now six commercial and developmental lithium battery types, nearly 30 commercialized electrode couples and more than 1,000 specific designs. Those designs include batteries for the handset, PDA and laptop market. Lithium is a great solution for handsets and PDAs because lithium is the lightest metal that exists, and according to Ultralife Batteries (www.ulbi.com), it has the greatest energy potential of any solid substance. Materials coated with lithium-based compounds can withstand extreme forces and temperatures. According to Tadiran Electronic Industries (www.tadiranbat.com), lithium also is the lightest nongaseous metal. So unlike lead or cadmium, the materials in lithium batteries are not a threat to the environment.

The full report on lithium batteries will be published in September and more information can be obtained at Business Communications’ Web site.