Greater Energy Density Needed
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THE MAGAZINE DEVOTED TO NICKEL AND ITS APPLICATIONS |
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ELECTRIC BICYCLES contribute to the nickel battery market, which, in 2004, generated
US$1.8 billion. |
Nickel rechargeable batteries face stiff competition
By Virginia Heffernan
Nickel Magazine, July 2005 -- The future for nickel batteries lies with electric vehicles as well as other potential applications such as hobby batteries, telecommunications and electric bikes, says a new report on the global nickel battery market from Frost & Sullivan, a New York-based research service.
Traditionally, the industrial sector has been the main end-user of nickel batteries, including nickel-cadmium (NiCad) and nickel metal hydrides (NiMH). That's because the batteries have high discharge rates and are relatively inexpensive and resistant to harsh environments and fluctuations in temperature. Recent growth in portable devices, such as laptops and mobile phones, has diversified the market.
However, the report warns that unless nickel battery manufacturers make a significant investment in research and development, they risk losing more market share to newer battery chemistries that have enhanced features, such as longer run times, decreased weight, and compact size. These newer battery chemistries include lithium-ion (Li-ion), lithium ion polymer (Li-ion Poly) and lithium sulphur.
"With the threat of substitution by newer battery chemistries, there is an urgent need to incorporate
additional features such as miniaturization, portability and greater energy density," say the authors of
World Nickel Battery Markets.
"Further, rigorously finding new applications or geographical regions in order to ensure market expansion
remains the prime challenge for future growth."
For new geographic markets, the report suggests manufacturers target countries outside the declining nickel battery markets in Europe and North America. The Asia Pacific region, where inexpensive labour, excellent infrastructure and abundant raw materials ensure higher profit margins, is singled out for its potential for growth. Lower production costs give these countries particular leverage during the current high-commodity price environment.
The nickel battery market generated $1.77 billion in revenue in 2004. The researchers expect this number to decline to $1.69 billion by 2011 unless new markets are developed soon.
Virginia Heffernan is a Toronto-based science writer.
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