Battery & Fuel Cell Materials

US demand for materials used in batteries and fuel cells is expected to decline to $4.3 billion in 2013, largely as a result of a moderation in raw material prices, particularly lead, which increased at double-digit rates during the 2003-2008 period. In particular, growth will be bolstered by an acceleration in lead-acid battery output as motor vehicle production recovers. The continued popularity of high-drain electronic devices will provide favorable opportunities for metals, chemicals and other materials. These and other trends are presented in Battery & Fuel Cell Materials, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

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. Demand for chemicals in volume terms will recover from the losses of the 2003-2008 period, aided by increases in demand for lead-acid and alkaline batteries. Polymers demand will benefit from the widespread use of high-value fluoropolymer membranes in fuel cells, while demand for carbon/graphite materials will be supported by healthy advances in production of lithium batteries. Among the functional categories for battery and fuel cell materials, the most rapid gains will be for performance additives and catalysts. Demand 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 comprised the largest functional category for materials in 2008, accounting for more than half of demand.

Secondary batteries accounted for 67 percent of battery and fuel cell material demand in 2008 due to the size of the lead-acid battery market. Materials demand for secondary batteries will be supported by a recovery in motor vehicle production, which will aid demand for items such as lead and sulfuric acid. Primary battery materials demand will be bolstered by continued healthy expansion of primary lithium battery production. Fuel cell materials will advance at a double-digit pace through 2013, driven by favorable prospects for fuel cell production as commercialization of these units contin