Battery Technologies for Automotive Applications Forces a Potential
Shift in Technology
January 19, 1999 19:05
LITTLE FALLS, N.J., Jan. 19 /PRNewswire/ -- The global automotive
battery industry may be on the cusp of large-scale change opening the
door for new competitors. This is due to the increasing amount of
high-profile announcements by leading automobile producers and their
plans for hybrid electric vehicles (HEVs) in the United States,
Europe, and Japan. Such major Japanese auto producers as Honda,
Toyota, and Nissan are planning to launch new HEV models in 1999,
while U.S. and European automobile producers have new products on the
horizon.
To make these new platforms attractive to consumers and commercially
viable, many of the automobile producers are utilizing such advanced
battery technologies as nickel metal hydride and lithium ion. The
implication of this to the automotive industry is that now the
leading rechargeable battery producers can apply new technologies and
chemistries to the automotive market, which has been dominated by
lead-acid rechargeable batteries.
The breadth of new technology choices includes nickel metal-hydride
(NiMH), nickel cadmium (NiCd), lithium ion, and lithium polymer. It
is apparent that many of the leading automotive original equipment
manufacturers (OEMs) are looking to nontraditional suppliers to meet
their future rechargeable battery requirements, as shown below:
Company Developmental efforts Partners
General Motors NiMH Ovonic
Lithium ion polymer Delphi/Valence
Technology
Nissan Lithium ion Sony
Toyota NiMH Matsushita Battery
USABC-a Lithium polymer (metal) 3M/Hydro Quebec
a - Includes Chrysler, Ford, and GM.
A parallel example of a rapid and dramatic change that may occur in
the automotive industry can be found by reviewing the recent
development and commercialization of advanced batteries in the
portable electronics industry. Before the explosion in growth of
portable electronics, nickel cadmium-based chemistry was the battery
technology of choice for small, portable devices. NiCd was developed
in the latter part of the 1940s and met the requirements of portable
equipment users up to the late 1980s.
However, with the rapid miniaturization of portable electronics, NiCd
no longer met electronic 0EMs' demands regarding such important
criteria as light weight and self-discharge. At this point, companies
involved in NiMH technology saw the opportunity to position this
chemistry as a better solution to NiCd. Then in 1993, Sony launched
its lithium ion technology to better meet portable electronics 0EMs',
as well as consumers' increasing needs and demands. This new product
helped strengthen Sony's leadership position in the portable
electronics business because it was able to deliver such value-added
enhancements as lighter weight and longer run devices.
The changing value proposition of the consumers and OEMs is what led
to the commercial development of two new chemistries -- lithium ion
and NiMH. The successful introduction of these two new chemistries,
based on a market-pull, also substantially changed the competitive
structure of the advanced rechargeable battery industry, and allowed
new world-class competitors into this market.
Revenues for the global battery business reached an estimated $30
billion in 1998. Starting, lighting and ignition (SLI) and related
secondary battery applications represent approximately one-half of
the overall market, while primary batteries represent approximately
35% and high-performance secondary batteries represent the remaining
15%, or $4.5 billion. Many of the leading high-performance secondary
battery producers are targeting automotive applications as their next
long-term growth objective.
What is not certain at this time is the final configuration(s) and
commercialization of electric vehicles (EVs) and HEVs that will drive
the final value proposition as well as adoption and implementation of
advanced battery technologies for automotive applications. To help
better understand the performance and value needs of this enormous
opportunity, Kline & Company is launching the multiclient study
GLOBAL OPPORTUNITIES FOR ADVANCED BATTERY TECHNOLOGIES IN AUTOMOTIVE
APPLICATIONS, 1998 TO 2008. This study will investigate and analyze
the emerging opportunities in the battery industry. For more
information please contact Michael Corbett at 973-435-3457 or email
mike_corbett@klinegroup.com.
SOURCE Kline & Company
/CONTACT: Michael Corbett of Kline & Company, 973-435-3457, or
mike_corbett@klinegroup.com/
/Web site: klinegroup.com
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