WORLD BATTERY MATERIALS to 2012 (Industry forecasts for 2012 & 2017)

Abstract

World demand for materials used in the production of batteries will increase 3.9 percent per year to $22.8 billion in 2012. Gains will be driven by strong growth in shipments of advanced rechargeable batteries such as lithium ion (Li-Ion) and nickel metal hydride (Ni-MH) types, which are increasingly being used in consumer electronics and motor vehicles. Additionally, rising income levels in the developed world will fuel demand for materials in alkaline and lithium consumer batteries. However, gains for battery materials will be limited by a less favorable outlook for more mature and outdated battery types, particularly zinccarbon cells, but also lead-acid and nickel-cadmium chemistries.

Metals will continue to be the leading battery material product type through 2012, comprising well over half of total demand. Metal prices spiked during the 2002-2007 period, spurring strong value gains for metal materials in batteries. However, advances through 2012 will be restrained by an expected moderation in metal prices, particularly in the large lead metal market, which accounted for the overwhelming majority of demand worldwide. Chemical materials will see the fastest gains, with robust demand for high-value lithium and nickel chemicals fueled by rising production of Li-Ion and Ni-MH batteries.

Among the major world regions, the most rapid growth in battery materials demand will be seen in the Asia/Pacific region. Most of the gains will be centered in China, which has grown to become the largest battery materials market in the world. India, Indonesia and South Korea are also expected to see above-average advances in materials demand. However, much of this growth will come at the expense of regional neighbor Japan, as battery production migrates out of the country, following the electronics industry to lower-cost locations elsewhere in Asia.

Demand for battery materials in North America and Western Europe will see much less favorable prospects through 2012, due to maturing local markets for batteries and an expected drop in the price of lead metal, a key material in the regions' markets. However, there are opportunities for growth in areas such as advanced rechargeable cells, as domestic production of batteries for hybrid/electric vehicles are beginning to be established in these regions. Gains for battery materials in the other world regions -- Latin America, Eastern Europe and the Africa/Mideast region -- will outpace the global average, though will remain largely focused on low-end zinc-carbon and lead-acid battery applications.

Study coverage

This new Freedonia industry study, World Battery Materials, presents historical demand data (1997, 2002, 2007) plus forecasts for 2012 and 2017 by battery material type (e.g., metals, chemicals), application (primary batteries, secondary batteries), world region (e.g. Asia/Pacific, North America, Western Europe) and for 19 major national markets. The study also considers market environment trends and indicators, assesses industry structure, evaluates company market share and profiles 38 battery material producers worldwide.