Yet another article -- LiPoly and NiMh.
Electronic Buyers Guide
October 18, 1999, Issue: 1182
Section: Extra: Top Component Suppliers
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Batteries
Chandra Steele
The big buzz among battery suppliers in 1998 was lithium-polymer technology.
Lithium-polymer is similar to lithium-ion technology in terms of energy density, but uses a gelatinous electrolyte rather than liquid, enabling it to be manufactured in various shapes and sizes for custom requirements.
Some battery manufacturers are embracing the technology, while others are a little more hesitant.
"Lithium-polymer cells are expected to make a major impact in the cellular market, and will have some impact in the notebook-computer market," said Barry Huret, president of Huret Associates, Yardley, Pa. "Lithium-polymer, to date, has essentially the same energy density as Li-ion. This is its primary advantage, and, potentially, the ability to be made in shapes other than square or rectangular."
But difficulties have been encountered in manufacturing high volumes of lithium-polymer batteries, Huret said.
As a result, there have not been significant quantities of lithium-polymer products shipped. There were some minor introductions of lithium-polymer-based cell-phone batteries during the first half of this year, but Huret said no significant quantities are expected to appear until late this year or early 2000.
In the longer term, both Li-ion and lithium-polymer cells are expected to make a major impact in the cellular market, and will have some effect in the notebook-computer market.
In theory, both technologies should also be looked upon favorably by PDA OEMs, but so far that hasn't happened, Huret said. Both technologies will eventually find their equilibrium points in the market, based on end-product demands and cost/performance benefits, he added.
What's driving the battery industry today, especially the nickel-metal/hydride and Li-ion segments, is explosive notebook-PC and cell-phone growth, according to Huret. "There was a large shift to Li-ion in the notebook market [in 1998], and that trend has continued," he said.
Cell-phone suppliers have increased their use of Li-ion, especially prismatic Li-ion, as the need for slimmer packaging continues to develop.
"There's a stronger visible emphasis on battery power management, with new semiconductor company entrants in the field and mergers among existing manufacturers," Huret said. "Battery-pack assembly is going through changes, as OEMs' needs fuel changes in location of production, and mergers and acquisitions change the landscape of this sector."
As for pricing, competition remained strong last year as OEMs developed manufacturing capabilities faster than the market was able to absorb them, he noted.
"Over time, availability and demand are expected to stabilize," Huret said.
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Top Battery Suppliers
Panasonic
For Panasonic Batteries, an important part of the future lies with lithium-polymer technology, which produces thinner, lighter rechargeable devices targeted primarily at handheld applications such as cell phones and PDAs.
The company began mass production of lithium-polymer batteries in January, with a capacity of 300,000 cells per month.
In the nickel-metal/hydride area, Panasonic in May introduced three high-power devices for high-drain applications. The 2,000-mAh HHR200SCP, 3,000-mAh HHR300SCP, and 6,500-mAh HHR650D have discharge characteristics comparable to those of nickel-cadmium batteries while providing 1.5 times the capacity, the company said.
Lithium-ion batteries currently bring in the most revenue for Panasonic, followed by NiMH and NiCd devices, according to Ty Bowman, marketing manager for the company's OEM Battery Sales Group. The latter two technologies are in the lead in terms of sales volume, he added.
In June, the company announced the opening of a plant in Reynosa, Mexico, for the production of sealed lead-acid batteries, complementing a lead-acid plant in Columbus, Ga., that earned ISO 14001 qualification in March.
One of Panasonic's most notable challenges of the past year has been price declines, Bowman said. In the NiCd arena in particular, the company has felt pricing pressures from offshore brands. Capacity constraints have been scattered among specific devices, he added.
In response, the company has localized production in various regions to reduce lead times and shipping costs, while maintaining its technology and quality levels, according to Bowman.
Panasonic's Japanese parent, Matsushita Electric Industrial Co. Ltd., posted approximately $63.7 billion in sales and $113 million in net income for fiscal 1998, ended March 31, 1999. Matsushita Electric Corp. of America, of which Panasonic Batteries is a unit, accounted for $8.1 billion of the sales total. Matsushita does not break out sales figures for its battery business. -Audrey Thompson
Saft
Saft America Inc. is another of the battery companies that are placing their bets on lithium-polymer technology. The company has come up with what it calls a "polythium" version designed mainly for high-end telecommunications applications.
"[Polythium] is being praised by several major telecom companies," said Carl Steinbrecher, manager of Saft's OEM marketing department, San Diego. "The testing is excellent."
But the company is not completely abandoning other battery technologies. It has made capacity advances, for example, in nickel-metal/hydride technology, including "just about the highest capacity for NiMH," Steinbrecher said. Saft's NiMH cells are aimed at the power tool, hobby, and race car markets.
There is also a renewed interest in NiMH because of environmental concerns, he said.
"In Europe, particularly in the Nordic countries, there's a ban on nickel-cadmium because it's seen as not being environmentally friendly," Steinbrecher said. "That's a big reason why [our] new high-power NiMH batteries are generating considerable interest."
Production of one of the company's NiMH AAA batteries, used in cell phones and other "pocketable" applications, has increased 50% to 60% this year, he said.
Saft provides a recycling program for both NiCd and NiMH batteries. The metal from the products is resold to steel companies. The cadmium is recycled to make new batteries.
Saft is conducting research to develop more powerful NiMH solutions per unit mass, largely for cell phones, according to Steinbrecher. The company is also looking at NiMH use in electric vehicles, and has begun deliveries to electric-vehicle manufacturers.
Saft allocates nearly 5% of sales to research and development efforts, Steinbrecher said.
The rechargeable-battery market is receiving a boost from the increasing popularity of PDAs and other handhelds, he said. One result has been an increase in competition, with a number of battery companies popping up in the Far East that are flooding the market with inexpensive products, he added.
Saft is countering by providing more support for its devices, which Steinbrecher said is of increasing importance to customers. -Chandra Steele
Sanyo
Last year was a big one for high-volume production of digital wireless products, said Joe Carcone, vice president of sales and marketing at Sanyo Energy (U.S.A.) Corp., San Diego.
"Qualcomm, Motorola, etc., all became more digitally oriented," he said. "The significant challenge for us was to bring cost efficiency to them."
To meet that challenge, the company is offering low-cost, low-profile lithium-ion batteries that lend themselves to high-end devices, Carcone said.
Li-ion-with its light weight and performance advantages-is the company's leading techno-logy, according to Carcone. Sanyo is increasing its market share and customer base by providing advanced solutions and feature enhancements such as monitoring the health, state of charge, and age of the battery, he added.
The company's logistical infrastructure serves as a valuable partner to its manufacturing expertise, which helps bring products on line quickly, Carcone said.
The battery maker's customer base is expanding, with recent additions that include Germany, Hungary, and the United Kingdom. Sanyo has also gotten a foot into the booming wireless market in South America, producing cellular battery packs in Manaus, Brazil.
Aside from cell phones, sub-$1,000 notebook PCs are also driving the battery market, according to Carcone. And PDAs are providing a challenge with their need for batteries with a high energy density and low profile.
As for lithium-polymer, Sanyo has been developing working prototypes and last month shipped a li-polymer battery to cell-phone giant Nokia, Carcone said. But the company is not betting the farm on the new technology.
"This is just hearsay, but there are some companies that apparently have withdrawn their lithium-polymer products," he said.
Sanyo places a high priority on environmental concerns. The company was instrumental, according to Carcone, in creating the Portable Rechargeable Battery Association and the Rechargeable Battery Recycling Corp., a non-profit organization whose goal is to implement a nationwide battery recycling program. -C.S.
Sony
To help fulfill the growing need for thinner and lighter battery solutions, Sony Electronics Inc. recently jumped into the lithium-polymer market.
The company expects to produce a million units monthly by the end of the year, said Mick Doura, director of Sony Electronics' OEM Energy Division in San Jose.
The company also boosted graphite-cell capacity last year as well as this year, according to Doura.
Sony, which claims to be the first company to develop and commercialize lithium-ion technology, says it is competing to obtain significant market share as OEMs contract with two or three suppliers to obtain Li-ion cells or battery packs.
This reflects certain major changes that the battery industry has undergone in the past year or so, Doura said.
"Since 1998, all Li-ion manufacturers have started bare-cell business with third parties who are working on pack assembling for some OEMs," he said. "Some of them are located in Taiwan, Korea, and China; some are in the United States. As of today, we're competing with Li-ion cell manufacturers as well as Li-ion pack manufacturers, although only Li-ion cell manufacturers can build Li-ion packs based on [their] expertise and specific knowledge of Li-ion technology." -C.S.
Toshiba
Toshiba America Electronic Components Inc. is focusing on its lithium-ion and nickel-metal/hydride products, while casting a wary eye on lithium-polymer technology, according to Rich Russ, business development manager of batteries and LCDs at the Irvine, Calif., company.
"Lithium-polymer is advancing, and a lot of people are overly excited by it," Russ said. "It's viewed as a catch-all, a savior. But it won't be for everyone," he said, adding that the technology is being driven primarily by cell-phone customers' quest for a thinner profile.
Key to TAEC's Li-ion efforts is enhancing capacity.
"We're seeing more and more defections from NiMH to Li-ion [technology]," Russ said. "The real place the switch makes a difference is in notebook computers. There's a 10% to 15% run-time improvement with Li-ion."
For instance, TAEC's Li-ion 18650 cell has gone from 1,350 to 1,600 mA, and Russ said he expects it to go to 1,800 mA by the second quarter of next year.
TAEC, like all battery makers, is facing a difficult market. The company's main concern is trying to turn a profit in a situation where some customers are demanding inexpensive parts to produce sub-$1,000 notebook PCs, or to enable them to give phones away free with calling plans.
"We've seen huge price erosion, especially in Li-ion," Russ said.
TAEC has responded by trying to find production efficiencies, such as eliminating the protection circuitry in batteries, he said.
The company is also attempting to differentiate itself through its Customer Service 2000 program, which is designed to help customers hit fast-closing market windows with greater efficiency and lower their risks by using TAEC's worldwide sales network. -C.S.
Copyright © 1999 CMP Media Inc. |
