Batteries/Markets 031031


Batteries/Markets
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Microsoft Excel Chart Data for graph is from Frost & Sullivan. See www.powersupplies.frost.com +
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Microsoft Excel Chart Although primary AA size batteries still hold a big lead; sales of the disposables fell 8.21 percent last year while AA rechargeables, mainly Nickel-metal hydride, gained a healthy 20 percent.   (Data based on information from A.C. Neilson. ) +
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(Febuary2004)Portable Products at CES Point to Greater Battery Needs
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 (Oct. 2003) China Claims Dominant Share of World’s Primary Battery Market.

According to the China Industrial Association of Power Sources, mainland China is acknowledged as the leading producer to primary batteries with an annual output of 19 billion units.  There are 2,000 manufacturers with 300 of those manufacturers exporting to other countries.
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Alkalines were the top batteries to be exported, accounting for 52 percent of the total.  Although China is currently not the leading producer of rechargeable batteries, they are working to increase their manufacturing to surpass Japan and Korea.  This past year, 2002, their exports of Nickel-cadmium and Nickel-metal hydride batteries totaled US$1.2 billion.

(Information is from “Batteries: Supplier Capability in China,” by Global Sources, Ltd., October 2003. See Web Site:  http://www.globalsources.com)
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 (Oct. 2003) Global market for secondary batteries could almost double in this decade.
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 The above figures are based on projections by the Korean Ministry of Commerce, Industry and Energy.

Korea’s goals are to catch up with Japan in the next few years, and the country has a vision to  take the global market lead by 2010. Currently, Japan controls about 70 percent of the world’s production of the rechargeable compact batteries for IT mobile communication units.  

Last year (2002), Korea’s share of the global market was 15.8 percent.  Korea’s proportion of world production is forecast to  reach 20 percent this year and 30 percent  by 2005.  (Information is based on figures from the Korea Ministry and the Battery R&D Association of Korea.)  

The “Big Three” manufacturers, Samsung SDI, LG Chem and SKC are making sizeable investments to produce more rechargeables.  

Already Samsung SDI is the  third largest global manufacturer, following  Sony and Sanyo of Japan.  Samsung plans to raise production capacity to 18 million per month  by the close of 2003 and to 25 million cells by 2005.   Currently, Sanyo reports that their output is 36 million cells per month.

SKC recently announced that is will sell Lithium-ion polymer batteries to the U.S. Department of Defense, having earned quality certification in June.  SKI is also receiving US$1.1 million for development of the next-generation high-polymer batteries from the U.S. Defense department.   

LG Chem is projecting  to increase its investment in rechargeable and has a goal of producing  18-million-cells permonth  by the end of October.

(Data in chart is from the Korean government’s report on the  designated next-generation industries that are to propel Korea’s growth in the next decade.  Such data was noted  in “Rechargeable batteries to boost Korea’s growth” by Kim Mi-hui, Korean Herald, 10/23/03
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Microsoft Excel ChartU.S. demand for primary and secondary batteries is forecast to climb 5 percent annually through 2007 to $14 billion.  An ongoing shift in the product mix toward more expensive batteries that offer improved performance, including high-rate primary Alkaline and lithium types, will also support dollar gains.

Secondary battery demand is expected to outpace primary battery market gains through 2007, benefiting from strong growth in the use of high-drain portable electronic devices.  Lead-acid will account for over half of the demand for all rechargeables in 2007, although Lithium-ion, Lithium polymer, and Nickel-metal hydride batteries will record the strongest growth .

Consumer applications will continue to account for close to three-quarters of all primary battery sales in 2007.  Primary Lithium, Zinc-air and other advanced chemistries are expected to account for an increasingly larger share of total sales because of their superior energy density and longevity.   However, Alkaline batteries will remain the dominant type, accounting for more than two-thirds of all primary battery sales in 2007.

(Information is from “Batteries,” published 06/2003 by   The Freedonia Group.  For further details contact Corinne Gangloff by phone at 44-684-9600 or email [email protected]  The cost of the full report is $4,000.)
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Sprint PCS Rolls Out 3G. Should Investors Care?

While the industry hopes that the Sprint introduction of 3G, behind Verizon and AT&T will be a shot in the arm for cellular, analysts from Lehman Brothers don’t see the business generating free cash flow because of its $16 billion debt. Pricing of the service works out to about $1.50 per megabyte. (Ed note: Using Sprint 3G would make one hi-res download of BD’s next issue cost about $10.00.) Contrarily, USB Warburg thinks the $4/share Sprint can have growth to $17/share. (09-02BD78-15)

Barron’s Technology Week
August 9, 2002, p.1

BattCellular(09-02BD78-7-8)


Markets for Electronic Devices

Forecasts Fog(12-01 BD69-3-6)

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