Demand for batteries in China will grow 13.2 percent annually through 2010. Gains will be driven by the emergence of electric bicycles and strong domestic consumer demand for battery-powered products. Alkaline and lithium batteries will be the fastest growing primary type while rechargeable lithium batteries will pace the secondary battery segment.

This study analyzes the 59 billion Chinese battery industry. It presents historical demand data for 1995, 2000 and 2005 and forecasts to 2010 and 2015 by battery type (e.g., zinc-carbon/zinc-chloride, alkaline, primary lithium, lead-acid, rechargeable lithium, nickel-cadmium, nickel-metal hydride); and market (e.g., consumer, industrial, government, electric bicycles and motor vehicles, portable devices, motive power, backup power).

The study also considers market environment factors, details industry structure, evaluates company market share and profiles 39 leading competitors including BYD, Baoding Jin Fengfan, SCUD Fujian Electronic, Johnson Controls, Huanyu Power Source, Tianneng Power, Coslight Technology International, GS Yuasa, Matsushita, and China BAK.

TABLE OF CONTENTS
                                    
  
  SECTION                                                          PAGE
  
  
         INTRODUCTION                                                xi
  
   I.    EXECUTIVE SUMMARY                                            1
  
  II.    MARKET ENVIRONMENT                                           4
         General                                                      4
         Economic Overview                                            5
         Population Patterns                                          8
         Personal Income & Expenditure Trends                        10
         Industrialization & Manufacturing Trends                    12
         Currency Exchange Rates                                     14
         Government Spending & Investment Trends                     17
         Motor Vehicle Outlook                                       18
         Electrical/Electronics Sector Outlook                       22
         Environmental & Regulatory Considerations                   24
         The Five-Year Plan                                          26
         
 III.    TECHNOLOGY                                                  29
         General                                                     29
         Basic Electrical Properties                                 30
         Battery Construction & Operation                            32
         Conventional Battery Chemistries                            34
         Advanced Battery Chemistries                                37
         Fuel Cells & Other Alternative Sources of Power             44
         Smart Batteries                                             48
  
  IV.    BATTERIES OVERVIEW                                          51
         General                                                     51
         Pricing Patterns                                            53
         International Environment                                   56
           World Outlook                                             56
           Foreign Trade                                             60
              Primary Batteries                                      62
              Secondary Batteries                                    63
  
   V.    PRIMARY BATTERY PRODUCTS                                    65
         General                                                     65
         Zinc-Carbon/Zinc-Chloride Batteries                         68
         Alkaline Batteries                                          70
         Primary Lithium                                             73
         Other Primary Batteries                                     74
           Silver Oxide                                              76
           Zinc-Air                                                  78
           Specialty & All Other Primary Batteries                   80
           
  VI.    PRIMARY BATTERY MARKETS                                     83
         General                                                     83
         Consumer Primary Battery Market                             86
           Entertainment                                             87
           Toys & Games                                              88
           Photography                                               89
           Lighting                                                  90
           Other Consumer Markets                                    91
         Industrial Primary Battery Market                           92
         Government Primary Battery Market                           94
         Other Primary Battery Markets                               96
         
 VII.    SECONDARY BATTERY PRODUCTS                                  99
         General                                                     99
         Lead-Acid Batteries                                        102
           Starting/Lighting/Ignition                               104
           Non-SLI                                                  106
              Motive Power                                          107
              Stationary & Other Types                              108
         Rechargeable Lithium Batteries                             109
           Lithium Ion                                              112
           Lithium Polymer                                          114
         Nickel-Cadmium Batteries                                   115
         Nickel-Metal Hydride Batteries                             117
         Other Secondary Batteries                                  120
           Rechargeable Alkaline                                    122
           Rechargeable Zinc-Air                                    123
           Nickel-Hydrogen                                          123
           Sodium-Sulfur                                            124
           All Other                                                125
           
VIII.    SECONDARY BATTERY MARKETS                                  127
         General                                                    127
         Electric Bicycles, Motor Vehicles & Other Transportation   130
           Electric Bicycles                                        132
           Traditional Motor Vehicles                               134
           Farm Vehicles                                            135
           Motorcycles                                              137
           Hybrid-Electric Vehicles                                 138
         Portable Devices                                           140
           Personal Communications Devices                          142
           Portable Computers                                       144
           Power Tools                                              146
           Other Portable Devices                                   147
         Motive Power                                               149
           Industrial & Mining Vehicles                             150
           Recreational & Other Motive Power                        151
         Backup Power Supplies                                      152
           Industrial                                               154
           Telecommunications                                       155
           Utility-Related                                          156
         Government & Other                                         157
           Government                                               158
           Other                                                    159
  
  IX.    INDUSTRY STRUCTURE                                         160
         General                                                    160
         Industry Composition                                       161
         Market Share                                               165
           Primary Batteries                                        167
              Procter & Gamble                                      168
              Shandong Goldlo Industrial                            169
              Guangdong Chaoan Zhenglong                            169
              Xiamen Three Circles                                  169
              Guangzhou Tiger Head Battery                          170
           Lead-Acid Secondary Batteries                            170
              Baoding Jin Fengfan Storage Battery                   171
              Johnson Controls                                      172
              GS Yuasa                                              172
              Tianneng Power International                          172
              Coslight Technology International                     173
           Other Secondary Batteries                                173
              BYD                                                   174
              SCUD Fujian Electronic                                175
              Huanyu Power Source                                   175
              China BAK Battery                                     175
              Matsushita Electric Industrial                        175
         Research & Product Development                             176
         Manufacturing                                              177
         Marketing & Distribution                                   179
         Financial Requirements                                     180
         Mergers, Acquisitions & Industry Restructuring             182
         Cooperative Agreements                                     184
         Foreign Participation in China                             187
           Legal & Regulatory Issues                                187
           Wholly-Owned Foreign Enterprises                         189
           Joint Venture                                            190
           Representative Offices                                   192
         Company Profiles                                           193
           Aucma New Power Technology Company Limited               194
           Baoding Jin Fengfan Storage Battery Company Limited      195
           BYD Company Limited                                      196
           Chaozhou Xuntong Power Source Company, see EnerSys          
           China BAK Battery Incorporated                           197
           China Shoto PLC                                          199
           Coslight Technology International Group Limited          200
           CSIC Zibo Storage Battery Factory                        202
           Duracell, see Procter & Gamble Company                      
           Energizer Holdings Incorporated                          203
           EnerSys                                                  206
           Fujian Nanping Nanfu Battery Company, see 
              Procter & Gamble Company                                 
           Fujian Quanzhou Huaqiao Storage Battery Factory          208
           Gold Peak Industries Holdings Limited                    209
           GP Batteries International, see Gold Peak Industries 
              Holdings
           GS Yuasa Corporation                                     212
           Guangdong Chaoan Zhenglong Enterprise Company            214
           Guangxi Wuzhou Sunwatt Battery Company Limited           215
           Guangzhou Hi-Watt Battery Company, see Guangzhou Tiger
              Head Battery Group Compan and Hi-Watt Battery Industry
              Company
           Guangzhou Tiger Head Battery Group Company Limited       216
           Hi-Watt Battery Industry Company Limited                 217
           Huanyu Power Source Company Limited                      218
           Hubei Camel Storage Battery Company Limited              219
           Jiangsu HighStar Chemical Battery Company Limited        220
           Johnson Controls Incorporated                            221
           Matsushita Electric Industrial Company Limited           224
           Minhua Battery Company Limited                           226
           Narada Power Source Company Limited                      227
           Ningbo Baowang Battery Company, see Spectrum Brands
           Procter & Gamble Company                                 229
           SANIK Battery Company Limited                            232
           SANYO Electric Company Limited                           233
           SCUD Fujian Electronic Company Limited                   235
           Shandong Goldlo Industrial Group Company Limited236
           Shanghai White Elephant Swan Battery Company Limited     237
           Shenzhen Desay Battery Technology Company Limited        238
           Simplo Technology Company Limited                        239
           Spectrum Brands Incorporated                             240
           TCL Corporation                                          242
           Tianjin Lantian SANYO Energy Company, see 
              SANYO Electric Company 
           Tianjin Lishen Battery Joint-Stock Company Limited       243
           Tianjin Tong Yee Industrial Company, see GS Yuasa
           Tianneng Power International Group                       244
           Weihai Wenlong Power Supply Group Company Limited        245
           Xiamen Three Circles Company Limited                     246
           Xinxiang Taihang Power Source Group Company Limited      247
           Yuasa Battery Guangdong Company, see GS Yuasa
           Zhejiang Mustang Battery Company Limited                 248
           Zhongyin Ningbo Battery Company, see 
              Gold Peak Industries
           Other Companies Mentioned in Study                       249



                           LIST OF TABLES
                                   
    TABLE NUMBER                                                   PAGE
  
  
         SECTION I -- EXECUTIVE SUMMARY
         Summary Table                                                3
  
         SECTION II -- MARKET ENVIRONMENT
    1    Gross Domestic Product of China                              7
    2    Population of China                                          9
    3    Consumer Income & Expenditure Patterns in China             12
    4    Manufacturing Value Added in China                          14
    5    Chinese Currency Exchange Rates 1995-2005                   16
    6    Government Spending & Investment in China                   17
    7    Motor Vehicle Indicators in China                           18
    8    Electrical & Electronic Equipment Shipments in China        24
  
         SECTION III -- TECHNOLOGY
    1    Fuel Cell Demand in China                                   46
    2    Smart Battery Demand in China                               50
  
         SECTION IV -- BATTERIES OVERVIEW
    1    Battery Supply & Demand in China                            53
    2    Battery Pricing in China                                    55
    3    World Battery Demand                                        59
    4    Chinese Foreign Trade in Batteries                          62
    5    Chinese Foreign Trade in Primary Batteries                  63
    6    Chinese Foreign Trade in Secondary Batteries                64
  
         SECTION V -- PRIMARY BATTERY PRODUCTS
    1    Primary Battery Supply & Demand in China                    67
    2    Zinc-Carbon/Chloride Battery Supply & Demand in China       70
    3    Alkaline Battery Supply & Demand in China                   72
    4    Primary Lithium Battery Supply & Demand in China            74
    5    Other Primary Battery Supply & Demand in China              76
    6    Silver Oxide Battery Demand in China                        78
    7    Zinc-Air Battery Demand in China                            80
    8    Specialty & All Other Primary Battery Demand in China       82
  
         SECTION VI -- PRIMARY BATTERY MARKETS
    1    Primary Battery Demand in China by Market                   85
    2    Consumer Primary Battery Market in China                    87
    3    Industrial Primary Battery Market in China                  94
    4    Government Primary Battery Market in China                  96
    5    Other Primary Battery Market in China                       98
  
         SECTION VII -- SECONDARY BATTERY PRODUCTS
    1    Secondary Battery Supply & Demand in China                 101
    2    Lead-Acid Battery Supply & Demand                          104
    3    Starting/Lighting/Ignition Battery Demand in China         106
    4    Non-SLI Lead-Acid Battery Demand in China                  107
    5    Rechargeable Lithium Battery Supply & Demand in China      112
    6    Nickel-Cadmium Battery Supply & Demand in China            117
    7    Nickel-Metal Hydride Battery Supply & Demand in China      120
    8    Other Secondary Battery Supply & Demand in China           122
  
         SECTION VIII -- SECONDARY BATTERY MARKETS
    1    Secondary Battery Demand in China by Market                129
    2    Electric Bicycle, Motor Vehicle & Other Transportation 
           Equipment Secondary Battery Market in China              131
    3    Electric Bicycle Secondary Battery Market in China         133
    4    Traditional Motor Vehicle Secondary Battery Market in China135
    5    Farm Vehicle Secondary Battery Market in China             137
    6    Motorcycle Secondary Battery Market in China               138
    7    Hybrid-Electric Vehicle Secondary Battery Market in China  140
    8    Portable Devices Secondary Battery Market in China         142
    9    Personal Communications Device Battery Market in China     144
   10    Portable Computer Secondary Battery Market in China        145
   11    Power Tools Secondary Battery Market in China              147
   12    Other Portable Devices Secondary Battery Market in China   148
   13    Motive Power Secondary Battery Market in China             150
   14    Backup Power Supply Secondary Battery Market in China      154
   15    Government & Other Secondary Battery Market in China       158
  
         SECTION IX -- INDUSTRY STRUCTURE
    1    Revenue Data: Selected Battery Manufacturers, 2005         163
    2    Selected Acquisitions & Divestitures                       183
    3    Selected Cooperative Agreements                            185
         
    

                          LIST OF CHARTS
  
    CHART NUMBER                                                   PAGE
  
  
         SECTION II -- MARKET ENVIRONMENT
    1    Population of China by Age                                  10
    2    Chinese Currency Exchange Rates, 1995-2005                  16
  
         SECTION III -- TECHNOLOGY
    1    Basic Battery Construction                                  33
  
         SECTION IV -- BATTERIES OVERVIEW
    1    World Battery Demand by Region, 2005                        60
  
         SECTION V -- PRIMARY BATTERY PRODUCTS
    1    Primary Battery Demand in China by Chemistry, 2005          68
  
         SECTION VI -- PRIMARY BATTERY MARKETS
    1    Primary Battery Demand in China by Market, 2005             85
  
         SECTION VII -- SECONDARY BATTERY PRODUCTS
    1    Secondary Battery Demand in China by Chemistry, 2005 102
  
         SECTION VIII -- SECONDARY BATTERY MARKETS                     
    1    Secondary Battery Demand in China by Market, 2005          129
  
         SECTION IX -- INDUSTRY STRUCTURE
    1    Total Battery Market Share in China by Company, 2005       167
    2    Primary Battery Market Share in China by Company, 2005     168
    3    Lead-Acid Battery Market Share in China by Company, 2005   171
    4    Non-Lead-Acid Secondary Battery Market Share in China 
           by Company, 2005                                         174