TABLE OF CONTENTS
SECTION PAGE
INTRODUCTION xi
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
Economic Environment 5
Cyclical Trends 9
Long-Term Trends 12
Durable Goods Manufacturing Trends 13
Electrical & Electronic Sector Trends 14
Legal & Regulatory Environment 16
III. TECHNOLOGY 18
General 18
Basic Electrical Properties 19
Battery Construction & Operation 21
Conventional Battery Chemistries 23
Alkaline 23
Zinc-Carbon/Zinc-Chloride 24
Lead-Acid 25
Nickel-Cadmium 25
Others 26
Advanced Battery Chemistries 27
Lithium 27
Nickel-Metal Hydride 31
Zinc-Air 32
Rechargeable Alkaline 33
Others 33
Wireless Communications & Portable Computing 35
Hybrid-Electric Vehicles 38
Fuel Cells & Other Alternative Sources of Power 40
Fuel Cells 41
Other Sources of Power 43
Motor Vehicle Electrical Trends 46
Smart Batteries 47
IV. OVERVIEW 50
General 50
Pricing Patterns 52
International Environment 55
World Outlook 56
Foreign Trade 60
Primary Batteries 62
Secondary Batteries 65
V. PRIMARY BATTERY PRODUCTS 68
General 68
Alkaline Batteries 72
Primary Lithium 75
Other Primary Batteries 79
Zinc-Air 80
Zinc-Carbon/Zinc-Chloride 82
Silver Oxide 84
Specialty & All Other Primary Batteries 86
VI. PRIMARY BATTERY MARKETS 89
General 89
Consumer Market 92
Personal Income & Expenditure Trends 92
Consumer Primary Battery Demand 94
Entertainment 96
Lighting 98
Toys & Games 99
Photography 100
Other Consumer Markets 101
Industrial Market 102
Industrial Production & Investment Trends 103
Industrial Primary Battery Demand 106
Government Market 109
Government Spending & Investment Trends 109
Government Primary Battery Demand 110
Other Primary Battery Markets 113
VII. SECONDARY BATTERY PRODUCTS 115
General 115
Lead-Acid Batteries 118
Starting/Lighting/Ignition 120
Non-SLI 122
Motive Power 124
Stationary & Other Types 125
Rechargeable Lithium Batteries 126
Lithium-Ion 129
Lithium-Polymer 132
Nickel-Metal Hydride Batteries 134
Nickel-Cadmium Batteries 136
Other Secondary Batteries 139
Rechargeable Alkaline 141
Rechargeable Zinc-Air 142
Nickel-Hydrogen 143
Sodium-Sulfur 144
Exotic & All Other 145
VIII. SECONDARY BATTERY MARKETS 147
General 147
Motor Vehicle Market 150
Motor Vehicle Outlook 151
Motor Vehicle Secondary Battery Demand 154
Conventional OEM 155
Conventional Replacement 156
Hybrid-Electric Vehicles 158
Portable Devices Market 162
Portable Computers 164
Personal Communication Devices 167
Power Tools 168
Other Portable Devices 170
Motive Power Market 172
Industrial & Mining Vehicles 174
Recreational & Personal Mobility Vehicles 176
Other Motive Power 177
Backup Power Supplies Market 177
Telecommunications 179
Industrial 180
Utility-Related 181
Government & Other Secondary Battery Markets 183
Government 185
Motorcycles 186
All Other 187
IX. INDUSTRY STRUCTURE 189
General 189
Industry Composition 191
Market Share 193
Primary Batteries 194
Lead-Acid Secondary Batteries 196
Other Secondary Batteries 197
Research & Product Development 199
Manufacturing 202
Marketing 204
Cooperative Agreements 206
Distribution 215
Financial Requirements 217
Mergers, Acquisitions & Industry Restructuring 220
Company Profiles 223
ABLE New Energy, see Ultralife Batteries
Alliant Techsystems Incorporated 224
BYD Company Limited 225
C&D Technologies Incorporated 226
Cobasys LLC, see Energy Conversion Devices
Crown Battery Manufacturing Company 229
Delphi Corporation 231
Douglas Battery Manufacturing Company 233
Duracell, see Procter & Gamble
EaglePicher Corporation 234
East Penn Manufacturing Company Incorporated 238
Eastman Kodak Company 241
Ener-Tek International Incorporated 242
EnerDel, see Delphi
Energizer Holdings Incorporated 243
Energy Conversion Devices Incorporated 246
EnerSys 250
Exide Technologies 254
Gold Peak Industries Holdings Limited 259
GNB Industrial Power, see Exide Technologies
GP Batteries International, see Gold Peak Industries
Holdings
Greatbatch Incorporated 261
GS Yuasa Corporation 263
Hitachi Limited 265
Johnson Controls Incorporated 267
KCM Marketing, see East Penn Manufacturing
Lithion, see Ener-Tek International
MarathonNorco Aerospace, see TransDigm Group
Matsushita Electric Industrial Company Limited 271
Matsushita Ultra-Technologies Battery, see Eastman
Kodak and Matsushita Electric Industrial
Maxell Corporation of America, see Hitachi
MK Battery, see East Penn Manufacturing
Ningbo Baowang Battery, see Spectrum Brands
Ovonic Battery, see Energy Conversion Devices
Panasonic Corporation of North America, see Matsushita
Electric Industrial
Power Battery Company Incorporated 274
Power-Sonic Corporation 276
Procter & Gamble Company 278
Renata SA, see Swatch Group
Saft Groupe SA 281
Samsung SDI Company Limited 285
SANYO Electric Company Limited 287
Schneider Electric SA 290
Sony Corporation 291
Spectrum Brands Incorporated 293
Swatch Group Limited 295
Toshiba Corporation 297
TransDigm Group Incorporated 299
Trojan Battery Company 300
Tyco International Limited 302
Ultralife Batteries Incorporated 304
US Battery Manufacturing Company 306
Valence Technology Incorporated 307
Wilson Greatbatch Technologies, see Greatbatch
Yardney Technical Products, see Ener-Tek International
Yuasa Battery, see GS Yuasa
Other Companies Mentioned in Study 309
LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3
SECTION II -- MARKET ENVIRONMENT
1 Economic Indicators 9
2 Battery Cyclical Trends, 1996-2006 11
3 Durable Goods Shipments 14
4 Electrical & Electronic Equipment Shipments 16
SECTION III -- TECHNOLOGY
1 Wireless Communications & Portable Computing Device Demand 37
2 Hybrid-Electric Vehicle Demand 40
3 Demand for Fuel Cells, Flywheel-Based Micropower
Products, Microturbines & Ultracapacitors 41
4 Smart Battery Demand 49
SECTION IV -- OVERVIEW
1 Battery Supply & Demand 52
2 Battery Pricing Patterns 54
3 World Battery Demand 59
4 US Battery Foreign Trade 62
5 US Primary Battery Foreign Trade 63
6 US Secondary Battery Foreign Trade 66
SECTION V -- PRIMARY BATTERY PRODUCTS
1 Primary Battery Supply & Demand 71
2 Alkaline Battery Supply & Demand 75
3 Primary Lithium Battery Demand 78
4 Other Primary Battery Supply & Demand 80
5 Zinc-Air Battery Demand 82
6 Zinc-Carbon/Zinc-Chloride Battery Demand 84
7 Silver Oxide Battery Demand 86
8 Specialty & All Other Primary Battery Demand 88
SECTION VI -- PRIMARY BATTERY MARKETS
1 Primary Battery Demand by Market 91
2 Consumer Income & Expenditures 94
3 Consumer Primary Battery Market 96
4 Industrial Sector Indicators 106
5 Industrial Primary Battery Market 108
6 Government Spending & Investment 110
7 Government Primary Battery Market 112
8 Other Primary Battery Markets 114
SECTION VII -- SECONDARY BATTERY PRODUCTS
1 Secondary Battery Supply & Demand 117
2 Lead-Acid Battery Supply & Demand 120
3 Starting/Lighting/Ignition Battery Demand 122
4 Non-SLI Lead-acid Battery Demand 123
5 Rechargeable Lithium Battery Supply & Demand 129
6 Nickel-Metal Hydride Battery Supply & Demand 136
7 Nickel-Cadmium Battery Supply & Demand 139
8 Other Secondary Battery Supply & Demand 141
SECTION VIII -- SECONDARY BATTERY MARKETS
1 Secondary Battery Demand by Market 149
2 Motor Vehicle Indicators 153
3 Motor Vehicle Battery Market 155
4 Conventional OEM Motor Vehicle Battery Market 156
5 Conventional Replacement Motor Vehicle Battery Market 158
6 Hybrid-Electric Vehicle Battery Market 161
7 Portable Devices Secondary Battery Market 164
8 Portable Computers Battery Market 166
9 Personal Communications Devices Battery Market 168
10 Power Tools Battery Market 170
11 Other Portable Devices Battery Market 172
12 Motive Power Secondary Battery Market 174
13 Backup Power Supplies Secondary Battery Market 179
14 Government & Other Secondary Battery Markets 185
SECTION IX -- INDUSTRY STRUCTURE
1 Revenue Data: Selected Battery Product
Manufacturers, 2006 192
2 Research & Development Spending Patterns: Selected Battery
Manufacturers 201
3 Capital Spending Patterns: Selected Battery Manufacturers 204
4 Selected Cooperative Agreements 208
5 Composite Financial Ratios: Selected Battery
Producers, 2006 219
6 Selected Acquisitions & Divestitures 222
LIST OF CHARTS
CHART NUMBER PAGE
SECTION II -- MARKET ENVIRONMENT
1 Battery Cyclical Trends, 1997-2006 11
SECTION III -- TECHNOLOGY
1 Basic Battery Construction 22
SECTION IV -- OVERVIEW
1 Battery Pricing Patterns, 1996-2016 55
2 World Battery Demand by Region, 2006 60
3 US Primary Battery Exports by Region, 2006 64
4 US Primary Battery Imports by Region, 2006 64
5 US Secondary Battery Exports by Region, 2006 67
6 US Secondary Battery Imports by Region, 2006 67
SECTION V -- PRIMARY BATTERY PRODUCTS
1 Primary Battery Demand by Chemistry, 2006 72
SECTION VI -- PRIMARY BATTERY MARKETS
1 Primary Battery Demand by Market, 2006 91
SECTION VII -- SECONDARY BATTERY PRODUCTS
1 Secondary Battery Demand by Chemistry, 2006 118
SECTION VIII -- SECONDARY BATTERY MARKETS
1 Secondary Battery Demand by Market, 2006 150
SECTION IX -- INDUSTRY STRUCTURE
1 Total US Battery Market Share by Company, 2006 194
2 US Primary Battery Market Share by Company, 2006 196
3 US Lead-Acid Battery Market Share by Company, 2006 197
4 US Non-Lead-Acid Secondary Battery Market Share
by Company, 2006 198