The future for nickel batteries lies with electric vehicles as well as other potential applications such as hobby batteries, telecom 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), because the batteries are relatively inexpensive, resistant to harsh environments and temperature flucuations and have high discharge rates. 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 sulpher.
“”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 sustainability.”
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 cheap 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.
Revenue in the nickel battery market was $1.77 billion in 2004. The researchers expect this number to decline to $1.69 billion by 2011 unless new markets are developed soon.