US Battery & Fuel Cell Materials Industry

US Battery & Fuel Cell Materials Industry

US demand for materials used in batteries and fuel cells is expected to decline slightly to $6.4 billion in 2013 largely as a result of a moderation in the prices of metals, particularly lead, which increased at double-digit rates during the 2003- 2008 period. In addition, prices for chemicals and polymers are expected to moderate through 2013, further limiting value gains. However, demand will be supported by expanding production of high-performance battery products such as lithium ion (Li-Ion) due to the enormous popularity of high-drain portable electronic devices. Demand will also benefit from rapid growth in fuel cell materials as fuel cells become more commercially available.

Metals will remain leading material type

Metals will continue to be the leading material type in batteries and fuel cells largely as a result of the enormity of the lead-acid motor vehicle battery market. Although metal prices spiked during the 2003-2008 period, spurring strong value gains for metals in batteries and fuel cells, prices are expected to moderate, holding back growth in value terms. Similarly, demand for chemicals will advance modestly, with slow growth due to a correction in chemical prices after sharp increases registered during the 2003-2008 period. Polymers demand will benefit from the widespread use of highvalue fluoropolymer membranes in fuel cells, while demand for carbon/graphite materials will be supported by healthy advances in production of lithium batteries, that incorporate carbon/graphite as part of the active material composition. Other materials, including glass fibers and silica, will post the most rapid gains based on increasing production of valveregulated lead-acid batteries, which utilize glass fibers in their construction.

Performance additives, catalysts to be fastest growing functions

Among functional categories for battery and fuel cell materials, the most rapid gains will be for performance additive and catalyst materials. Demand for these products will be driven by the ongoing need to improve battery performance and longevity, as well as by good prospects for the production of fuel cells, most of which incorporate costly precious metal catalysts such as platinum. Active materials and electrodes comprise the largest functional category for materials, accounting for more than half of demand in 2008. However, demand for active materials and electrodes, as well as for current collectors and battery containers, is expected to register declines through 2013 based on an expected moderation in metals pricing from the high levels of the 2003-2008 period.

Fuel cells, primary batteries to be fastest growing markets

Secondary batteries accounted for nearly 70 percent of battery and fuel cell material demand in 2008 due to the size of the lead-acid battery market. While secondary battery materials are forecast to post declines through 2013 due to moderating lead prices, primary battery materials are projected to register slight increases due to continued strong demand for primary lithium cells. Fuel cell materials are anticipated to advance at a double-digit pace through 2013 as a result of favorable prospects for fuel cell production as commercialization of these units continues.

Study coverage

It presents historical demand data (1998, 2003, 2008) as well as forecasts for 2013 and 2018 by type, function and application. The study also considers market environment factors, assesses the industry structure, evaluates company market share and profiles 35 competitors in the US industry including Doe Run, East Penn, Exide, Quexco, Sanders Lead and Thomas Steel.

TABLE OF CONTENTS

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Economic Environment 5
Durable Goods Manufacturing Outlook 10
Battery Industry Overview 12
Primary Batteries 14
Secondary Batteries 17
Fuel Cell Industry Overview 20
Technology Trends 22
Batteries 23
Basic Technology 24
Recent Developments 25
Fuel Cells 30
Basic Technology 31
Fuel Cell Chemistries 33
Battery & Fuel Cell Nanomaterials 34
Environmental & Regulatory Issues 37
Recycling 38
Health & Safety 39

III. BATTERY & FUEL CELL MATERIALS OVERVIEW 41

General 41
Demand by Type 42
Demand by Function 44
Demand by Application 46

IV. BATTERY MATERIALS 48

General 48
Demand by Type 49
Metals 51
Lead 52
Steel 55
Zinc 57
Other Metals 58
Chemicals 62
Metallic Chemicals 64
Other Chemicals 70
Polymers 73
Polyolefins 74
Fluoropolymers 75
Other Polymers 76
Carbon/Graphite 77
Other Materials 79
Silica 81
Glass Fibers 81
Ceramics 82
All Other Materials 82
Demand by Function 83
Active Materials 85
Current Collectors 87
Containers 89
Performance Additives 91
Separators 93
Electrolytes 96
Other Functions 97
Terminals 99
Gaskets & Seals 99
Catalysts 100
All Other Functions 101
Demand by Application 102
Primary Batteries 104
Alkaline 106
Primary Lithium 109
Zinc-Carbon 112
Zinc-Air 114
Other Primary 116
Secondary Batteries 118
Lead-Acid 121
Rechargeable Lithium 128
Nickel-Cadmium 130
Nickel-Metal Hydride 133
Other Secondary 136

V. FUEL CELL MATERIALS 139

General 139
Demand by Type 140
Metals 142
Platinum 143
Other Metals 144
Polymers 145
Fluoropolymers 146
Other Polymers 147
Ceramics 148
Carbon/Graphite 149
Chemicals & Other 151
Demand by Function 153
Catalysts 155
Electrodes 157
Electrolytes 159
Plates 160
Other Functions 162
Fuel Storage 164
All Other Functions 164
Demand by Application 165
Proton-Exchange Membrane 167
Molten Carbonate 169
Phosphoric Acid 170
Alkaline 171
Solid-Oxide 173
Direct Methanol 174
Other 176

VI. INDUSTRY STRUCTURE 178

General 178
Market Share 182
Exide Technologies 183
Doe Run Resources 183
RSR 184
East Penn Manufacturing 184
Other Companies 185
Manufacturing 186
Battery Materials 186
Fuel Cell Materials 187
Competitive Strategies 189
Marketing & Distribution 194
Company Profiles 195
Ames Goldsmith Corporation 196
AMETEK Incorporated 197
Asbury Carbons Incorporated 198
Ballard Power Systems Incorporated 199
BASF SE 201
Bulk Molding Compounds, see Citadel Plastics Holdings
Cabot Corporation 203
Celanese Corporation 205
Chemetall, see Rockwood Holdings
Citadel Plastics Holdings Incorporated 207
Companhia Vale do Rio Doce, see Vale
Corus Group, see Tata Steel
Delta plc 209
Doe Run Resources Corporation 210
DuPont (EI) de Nemours 212
East Penn Manufacturing Company Incorporated 214
Energizer Holdings Incorporated 215
Energy Conversion Devices Incorporated 216
Erachem Comilog, see Eramet
Eramet SA 218
Exide Technologies 220
Fabricated Products, see Doe Run Resources
FMC Corporation 221
Fortron Industries, see Celanese
Gopher Resource Corporation 223
GrafTech International Limited 224
Hammond Group Incorporated 225
Hollingsworth & Vose Company 226
Horsehead Holding Corporation 228
Inco Special Products, see Vale
INMETCO, see Vale
International Metals Reclamation, see Vale
Johnson Matthey plc 229
Manganese Metal Company, see Delta
Novamet Specialty Products, see Vale
Nyrstar, see Umicore
OM Group Incorporated 231
Ovonic Battery, see Energy Conversion Devices
Quexco Incorporated 232
Rare Earth Ovonic Inner Mongolia, see Energy Conversion
Devices
Rockwood Holdings Incorporated 233
RSR, see Quexco
Sanders Lead Company Incorporated 234
Societe Le Nickel, see Eramet
Starck (HC) GmbH & Company KG 235
Superior Graphite Company 236
Tata Steel Limited 237
3M Company 238
Ticona, see Celanese
Tronox Incorporated 240
Umicore sa 241
Vale SA 245
Xstrata plc 247
Other Companies Mentioned in Study 250

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 10
2 Durable Goods Shipments 11
3 Battery Supply & Demand 13
4 Primary Battery Supply & Demand 16
5 Secondary Battery Supply & Demand 19
6 Fuel Cell Shipments by Type 22
7 Nanomaterials Demand in Batteries & Fuel Cells 37

SECTION III -- BATTERY & FUEL CELL MATERIALS OVERVIEW

1 Battery & Fuel Cell Materials Demand by Type 43
2 Battery & Fuel Cell Materials Demand by Function 45
3 Battery & Fuel Cell Materials Demand by Application 47

SECTION IV -- BATTERY MATERIALS

1 Battery Materials Demand by Type 50
2 Metals Demand in Batteries 52
3 Lead Demand in Batteries 55
4 Steel Demand in Batteries 56
5 Zinc Demand in Batteries 58
6 Other Metals Demand in Batteries 59
7 Chemicals Demand in Batteries 63
8 Metallic Chemicals Demand in Batteries 65
9 Other Chemicals Demand in Batteries 71
10 Polymers Demand in Batteries 74
11 Carbon/Graphite Demand in Batteries 79
12 Other Materials Demand in Batteries 80
13 Battery Materials Demand by Function 84
14 Battery Active Materials Demand 87
15 Battery Current Collector Materials Demand 89
16 Battery Container Materials Demand 91
17 Battery Performance Additive Materials Demand 93
18 Battery Separator Materials Demand 95
19 Battery Electrolyte Materials Demand 97
20 Battery Materials Demand for Other Functions 98
21 Battery Materials Demand by Application 103
22 Primary Battery Materials Demand 105
23 Alkaline Battery Materials Demand 108
24 Primary Lithium Battery Materials Demand 111
25 Zinc-Carbon Battery Materials Demand 113
26 Zinc-Air Battery Materials Demand 116
27 Other Primary Battery Materials Demand 118
28 Secondary Battery Materials Demand 120
29 Lead-Acid Battery Materials Demand 123
30 Metals Demand in Lead-Aid Batteries 124
31 Chemicals Demand in Lead-Acid Batteries 125
32 Polymers Demand in Lead-Acid Batteries 126
33 Other Materials Demand in Lead-Acid Batteries 127
34 Rechargeable Lithium Battery Materials Demand 130
35 Nickel-Cadmium Battery Materials Demand 132
36 Nickel-Metal Hydride Battery Materials Demand 135
37 Other Secondary Battery Materials Demand 138

SECTION V -- FUEL CELL MATERIALS

1 Fuel Cell Materials Demand by Type 141
2 Metals Demand in Fuel Cells 143
3 Polymers Demand in Fuel Cells 146
4 Ceramics Demand in Fuel Cells 149
5 Carbon/Graphite Demand in Fuel Cells 151
6 Chemicals & Other Materials Demand in Fuel Cells 152
7 Fuel Cell Materials Demand by Function 154
8 Fuel Cell Catalyst Materials Demand 157
9 Fuel Cell Electrode Materials Demand 159
10 Fuel Cell Electrolyte Materials Demand 160
11 Fuel Cell Plate Materials Demand 162
12 Fuel Cell Materials Demand for Other Functions 164
13 Fuel Cell Materials Demand by Application 166

SECTION VI -- INDUSTRY STRUCTURE

1 US Battery & Fuel Cell Materials Sales by Company, 2008 180
2 Selected Cooperative Agreements 192

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Basic Battery Construction 25
2 Basic Fuel Cell Construction 33

SECTION III -- BATTERY & FUEL CELL MATERIALS OVERVIEW

1 Battery & Fuel Cell Materials Demand by Type, 2008 43
2 Battery & Fuel Cell Materials Demand by Function, 2008 45
3 Battery & Fuel Cell Materials Demand by Application,
1998-2018 47

SECTION IV -- BATTERY MATERIALS

1 Battery Materials Demand by Type, 2008 50
2 Battery Materials Demand by Function, 2008 84
3 Battery Materials Demand by Application, 2008 103

SECTION V -- FUEL CELL MATERIALS

1 Fuel Cell Materials Demand by Type, 2008 142
2 Fuel Cell Materials Demand by Function, 2008 154
3 Fuel Cell Materials Demand by Application, 2008 167

SECTION VI -- INDUSTRY STRUCTURE

1 US Battery & Fuel Cell Materials Market Share, 2008 182