Boom time ahead for Li-ion secondary batteries

August 21, 2007

The market for Li-ion secondary batteries is set to zoom past the 100 billion yen mark by year 2015, says market research and consulting company Yano Research Institute Ltd.

Yano Research expects hybrid electric vehicles (HEVs) equipped with a Li-ion secondary battery system to emerge on the market about 2010. It said
that despite a technical challenge that Li-ion systems are yet to ensure safety, Li-ion secondary batteries are likely to gradually replace currently revailing nickel-hydride (Ni-MH) batteries. This is because Li-ion secondary batteries have a smaller and lighter body, higher capacity and higher output
than nickel-hydride (Ni-MH) batteries.

According to a Japanese media report, Yano Research Institute has said that the research was mainly based on the interviews conducted in May to July 2007 targeting secondary battery-related manufacturers. The HEV market is expected to expand as regulations toward environment protection are implemented.

The report added that automobile applications are also expected to increase rapidly to 15 per cent in 2015 and 30 to 40 per cent in 2020 of the overall Li-ion secondary battery market.

Li-ion batteries, in the meantime, are likely to start taking share in the automobile application market from Ni-MH batteries after 2011. Ni-MH batteries will, however, never be completely driven out of the market, Yano Research Institute added. This was because Ni-MH batteries have been employed for HEVs over the last ten years and their safety has won the market's strong faith because they have never caused any serious accidents so far.