New Technology Poses Changes, Challenges, and Opportunities for Advanced Batteries in Automotive Applications
New Battery Technologies May Finally Make Electric and Hybrid Electric Vehicles a Commercial Reality
December 15, 1998 17:42
LITTLE FALLS, N.J., Dec. 15 /PRNewswire/ -- The $15 billion global automotive battery industry may be on the cusp of large-scale change, opening the door for new competitors and offering significant opportunities for advanced battery companies, materials suppliers, and automotive original equipment manufacturers (OEMs), according to consultants at Kline & Company, Inc., a New Jersey-based business consulting firm.
The driving forces behind this change are:
-- Emerging new battery technologies for automotive applications
-- The increasing amount of research and development efforts being
targeted for electric and hybrid vehicles
The development and growth of electric and hybrid vehicle programs in the United States, Europe, and Japan is rapidly increasing the interest in new advanced battery technologies. Electric and hybrid vehicle programs are being funded by both government and industry-sponsored consortia with the goal of reducing vehicle emissions.
"Electric and hybrid vehicles currently represent the largest growth potential for advanced batteries, after a half-century of little change in the type of battery used in automotive applications," says Michael Corbett, project manager at Kline. "The widespread commercialization of these vehicles could drive double-digit growth for the entire battery industry well into the next century. This would present significant new opportunities for companies with the ability to meet the changing requirements."
Although robust growth in the industry appears certain, less certain are the types of batteries that will be used in electric and hybrid vehicles. "Automotive OEMs currently have many options available to them when selecting battery chemistries for use in electric and hybrid vehicles," states Corbett. "In addition, the number of options is expected to increase, driven by new products and technologies introduced by a growing numbers of suppliers vying to capture market share in the automotive segment."
While the changes and challenges presented by electric and hybrid vehicles represent significant opportunities to some, including portable electronic battery producers, traditional automotive battery producers may see these changes as more of a threat. "This is due in large part to the recent development and commercialization of advanced batteries in the portable electronics industry," notes Corbett. "The successful commercial development of two new chemistries -- lithium ion and nickel metal-hydride (NiMH) -- has substantially changed the competitive structure of the advanced rechargeable battery industry, allowing new world-class competitors into this market."
The implication of this to the automotive industry is that the leading rechargeable battery producers can now apply new technologies and chemistries to the automotive market, which has been dominated by lead-acid rechargeable batteries. In fact, many of the leading high-performance rechargeable battery producers are targeting automotive applications as their next long-term growth objective.
Traditional and nontraditional competitors will be fighting for a piece of a global battery business that reached an estimated $30 billion in revenue in 1998. 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.
These business opportunities, along with other emerging industry trends, will be described in a study Kline plans to publish in late 1999 entitled GLOBAL OPPORTUNITIES FOR ADVANCED BATTERY TECHNOLOGIES IN AUTOMOTIVE APPLICATIONS, 1998 TO 2008. The study will focus specifically on opportunities emerging from electric and hybrid vehicles, and will also include information and insights into developments in starting, lighting, and ignition (SLI) technology. The geographic scope of the report will be global, with specific emphasis on North America and Japan, as well as Western Europe and South America.
Established in 1959, Kline & Company, Inc. is recognized around the world as one of the leading business consulting firms specializing in the specialty chemicals and materials industry. Over the last ten years, Kline has completed more than 20 projects related to new battery technologies, including the 1997 study GLOBAL OPPORTUNITIES IN ADVANCED BATTERY TECHNOLOGIES, which examined the opportunities available in the secondary, or rechargeable, battery field.
For subscription information on GLOBAL OPPORTUNITIES FOR ADVANCED BATTERY TECHNOLOGIES IN AUTOMOTIVE APPLICATIONS, 1998 TO 2008, please contact Michael Corbett, project manager, at Kline & Company, Inc., Overlook at Great Notch, 150 Clove Road, Little Falls, NJ, 07424, 973-435-3457, or by e-mail at mike_corbett@klinegroup.com.
SOURCE Kline & Company, Inc.
/CONTACT: Michael Corbett, Project Manager of Kline & Company, Inc.,
973-435-3457/
/Web site: klinegroup.com
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