Battery & Fuel Cell Components

SUMMARY

US demand to grow over 6% per year through 2007

Demand for battery and fuel cell components is projected to rise more than sixpercent annually through 2007 to $4.8 billion. Market advances will be fueled by an acceleration in US battery shipments, spurred by strong demand forenergy-hungry portable devices like digital cameras and wireless phones, and increasing production of electrical and electronic equipment.

Anongoing shift in industry output toward advanced, higher-end batteries that offer improved performance will also support associated component marketgains. In addition, fuel cell output will climb over eightfold, resulting in double-digit increases in demand for electrode assemblies, fuel reformersand processors, plates and other components.

Electronics, electrodes are key component types

Demand for electrical and electronicdevices will grow at an above-average pace through 2007. These gains will be due in part to the increased use of "smart" battery technology andsupported by double-digit growth in lithium battery production, resulting in greater demand for safety devices used to provide overcurrent protection,and by a robust fuel cell market environment, boosting demand for on-board power conditioning devices, among other components. However, batteryelectrodes will still account for the largest share of overall battery and fuel cell components demand. Consumption of battery containers andcoverings (cans, cases, jackets, etc.) will remain substantial as well, representing nearly one-fifth of the total in 2007.

Secondarybatteries to remain largest market

Rising at a five percent annual rate, secondary batteries will continue to be by far the largest marketfor components in 2007, accounting for more than three-fifths of all demand in value terms. This is predominantly due to the huge size of thelead-acid battery components market. Leadacid battery parts demand is expected to accelerate through 2007, although much faster market gains will berecorded by rechargeable lithium and other secondary battery types, which include nickel-metal hydride batteries, widely used in a number of consumer,business and government settings. Nickelmetal hydride batteries also appear to have moved into the lead as the chemistry of choice for hybrid/electricvehicles. Consumption of primary battery components will climb at a more measured pace through 2007, with alkaline batteries accounting for over 60percent of the total. However, primary lithium will represent the fastest growing segment of the primary batteries components market, fueled byfurther technological advances resulting in improved energy density and longevity and continued strong demand for highperformance components.

Themarket for parts used in the construction of fuel cells is currently small but will expand rapidly along with product shipments. Fuel cells accountedfor less than two percent of all components demand in 2002, but will grow to over ten percent of the market total in 2007 and will represent almostonequarter of all components demand in 2012.

Study coverage

Details on these and other findings are available in the newFreedonia study, Battery & Fuel Cell Components. It provides historical US demand data for 1992, 1997 and 2002, plus forecasts to the years 2007and 2012 by type (e.g., assembly parts, containers and coverings, electrical and electronic devices, electrodes, separators, fuel reformers andprocessors, plates); and by application. The study also examines the market environment, details industry structure and market share, and profiles 40companies.

TABLE OF CONTENTS

INTRODUCTION

I. EXECUTIVE SUMMARY

II. MARKET ENVIRONMENT

• General
• Economic Environment
• Durable Goods Manufacturing Overview
• Battery Industry Overview
• Primary Batteries
• Secondary Batteries
• Fuel Cell Industry Overview
• Technology Trends
• Batteries
• Basic Technology
• Recent Developments
• Fuel Cells
• Basic Technology
• Fuel Cell Chemistries
• Legal & Regulatory Environment

III. BATTERY & FUEL CELL COMPONENTS OVERVIEW

• General
• Demand by Type
• Demand by Application

IV. BATTERY COMPONENTS DEMAND

• General
• Demand by Type
• Electrodes
• Lead-Based
• Other
• Containers & Coverings
• Metal Cans & Cases
• Polypropylene Cases
• Other Cases & Coverings
• Assembly Components
• Gaskets & Seals
• Fasteners
• Other
• Separators
• Polymer
• Other
• Electrical & Electronic Devices
• Wire & Cable
• Connectors, Contacts & Terminals
• Integrated Circuits
• Other
• Demand by Application
• Primary Batteries
• Alkaline
• Primary Lithium
• Zinc Types
• Other Primary Batteries
• Secondary Batteries
• Lead-Acid
• Rechargeable Lithium
• Nickel-Cadmium
• Other Secondary Batteries

V. FUEL CELL COMPONENTS DEMAND

• General
• Demand by Type
• Electrode Assemblies
• Membrane Electrode
• Other
• Plates
• Bipolar
• End & Other
• Fuel Reformers & Processors
• Assembly Components
• Gaskets & Seals
• Tie-Rods & Other Fasteners
• Other
• Electrical & Electronic Devices
• Electrical Components
• Power Conditioning Devices
• Other Electronic Components
• Other
• Fuel Storage Devices
• Other
• Demand by Application
• Proton-Exchange Membrane
• Phosphoric Acid
• Alkaline
• Other
• Solid-Oxide
• Molten Carbonate
• Derivatives & Hybrids

VI. INDUSTRY STRUCTURE

• General
• Market Share
• Manufacturing
• Battery Components
• Fuel Cell Components
• Captive & Contract Production
• Research & Product Development
• Marketing & Distribution
• Acquisitions & Divestitures
• Company Profiles
• Accuma Group
• Amer-Sil, see Moore
• Amerace Microporous Products LP
• AMETEK Incorporated
• Ballard Power Systems Incorporated
• BBA Group plc
• Bourns Incorporated
• Celanese AG
• Celgard, see Daramic
• CLARCOR Incorporated
• Clark (JL), see CLARCOR
• Cly-Del Manufacturing Company Incorporated
• Component Concepts Incorporated
• Connor Corporation
• Corus Group plc
• Dallas Semiconductor, see Maxim Integrated Products
• Daramic Incorporated
• Dionys Hofmann GmbH
• Doe Run Resources Corporation
• DuPont (EI) de Nemours
• Duracell, see Gillette
• Energizer Holdings Incorporated
• ENTEK International LLC
• ETCO Incorporated
• Exide Technologies
• Exmet Corporation
• Freudenberg & Company
• Fuel Cell Components & Integrators Incorporated
• Gillette Company
• Gore (WL) & Associates Incorporated
• Hardigg Industries Incorporated
• HCC Industries Incorporated
• Heitkamp & Thumann Group
• Hermetic Seal, see HCC Industries
• Hollingsworth & Vose Company
• Johnson Controls Incorporated
• Johnson Matthey plc
• Matsushita Electric Industrial Company Limited
• Maxim Integrated Products Incorporated
• McDermott International Incorporated
• Microchip Technology Incorporated
• Minnesota Mining and Manufacturing, see 3M
• Moore Company
• National Manufacturing Company Incorporated
• PowerSmart, see Microchip Technology
• Reemay, see BBA Group
• Seafab Metals, see Doe Run Resources
• SOFCo, see McDermott International
• Stalcop LP
• Steinbeis Holding GmbH
• Stewart EFI LLC
• TechnaPulse, see Fuel Cell Components & Integrators
• Texas Instruments Incorporated
• Thomas Steel Strip, see Corus Group
• 3M Company
• Toyo Seikan Kaisha Limited
• Truelove & Maclean, see Heitkamp & Thumann Group
• Other Companies Mentioned in Study

LIST OF TABLES

SECTION I - EXECUTIVE SUMMARY

1 Summary Table

SECTION II - MARKET ENVIRONMENT

1 Economic Indicators

2 Durable Goods Shipments

3 Battery Supply & Demand

4 Primary Battery Shipments by Type

5 Secondary Battery Shipments by Type

6 Fuel Cell Shipments by Type

SECTION III - BATTERY & FUEL CELL COMPONENTS OVERVIEW

1 Battery & Fuel Cell Components Demand by Type

2 Battery & Fuel Cell Components Demand by Application

SECTION IV - BATTERY COMPONENTS DEMAND

1 Battery Components Demand by Type

2 Battery Electrodes Demand

3 Battery Containers & Coverings Demand

4 Battery Assembly Components Demand

5 Battery Separators Demand

6 Battery Electrical & Electronic Devices Demand

7 Battery Components Demand by Application

8 Primary Battery Components Demand

9 Alkaline Battery Components Demand

10 Primary Lithium Battery Components Demand

11 Zinc Type Battery Components Demand

12 Other Primary Battery Components Demand

13 Secondary Battery Components Demand

14 Lead-Acid Battery Components Demand

15 Rechargeable Lithium Battery Components Demand

16 Nickel-Cadmium Battery Components Demand

17 Other Secondary Battery Components Demand

SECTION V - FUEL CELL COMPONENTS DEMAND

1 Fuel Cell Components Demand by Type

2 Fuel Cell Electrode Assemblies Demand

3 Fuel Cell Plates Demand

4 Fuel Cell Fuel Reformers & Processors Demand

5 Fuel Cell Assembly Components Demand

6 Fuel Cell Electrical & Electronic Devices Demand

7 Other Fuel Cell Components Demand

8 Fuel Cell Components Demand by Application

SECTION VI - INDUSTRY STRUCTURE

1 Revenue Data: Selected Battery & Fuel Cell Components Companies, 2002

2 Selected Cooperative Agreements

3 Selected Acquisitions & Divestitures

LIST OF CHARTS

SECTION II - MARKET ENVIRONMENT

1 Basic Battery Construction

2 Basic Fuel Cell Construction

SECTION III - BATTERY & FUEL CELL COMPONENTS OVERVIEW

1 Battery & Fuel Cell Components Demand by Type, 2002

2 Battery & Fuel Cell Components Demand by Application

SECTION IV - BATTERY COMPONENTS DEMAND

1 Battery Components Demand by Type, 2002

2 Battery Components Demand by Application, 2002

SECTION V - FUEL CELL COMPONENTS DEMAND

1 Fuel Cell Components Demand by Type, 2002

2 Fuel Cell Components Demand by Application, 2002

SECTION VI - INDUSTRY STRUCTURE

1 US Battery & Fuel Cell Components Market Share, 2002