They do not suffer from memory effect and have a low self-discharge rate of around 5 percent per month compared to common nickel cadmium (NiCd) batteries. The capacity to generate high power output while maintaining a low footprint has opened up new avenues for secondary lithium batteries.
Li-ion batteries have a high energy density (160 Wh/kg) compared to nickel-metal hydride (NiMH) batteries (30-80 Wh/kg). With rising awareness levels on the benefits of Li-ion batteries, they are increasingly being deployed in various segments as an energy source.
New analysis from Frost & Sullivan (batteries.frost.com), Asia Pacific Secondary Lithium Battery Market, finds that the market earned revenues of over US$1.8 billion in 2009 and estimates this to reach US$2.4 billion in 2016.
"The industrial segment, which has been lagging behind the consumer segment in the adoption of Li-ion batteries, is expected to increasingly adopt these batteries due to the maturity of the technology in this segment," says Frost & Sullivan Industry Analyst Teoh Chew Yew. "This is likely to open up new revenue streams for Li-ion battery manufacturers."
In addition, the consumer segment, with the continuous convergence of IT and communication products, will require batteries with higher energy density to power different functionalities in a single device.
Although the prospects for the market look bright, some aspects are proving to be growth bottlenecks. Li-ion batteries have a higher manufacturing cost compared to other batteries such as NiCd, restraining their uptake. In addition, they have a tendency to become unstable at temperatures over 140 degrees Celsius.
Moreover, Li-ion batteries face competition from alternative technologies that are being researched upon or readied for commercialisation. Technologies such as fuel cells, which are steadily gaining momentum, are poised to replace Li-ion batteries in the electric vehicles (EV) industry. Considering the demand upsurge for lithium in EVs and hybrid electric vehicles (HEVs), there are concerns over supply falling short of demand.
For the Li-ion batteries market to grow, it is important for companies to invest in R&D to achieve better cost efficiencies in the manufacturing of these batteries.
"Participants must strive to lower the cost of extracting, refining, and processing Lithium," says Teoh. "Cost reduction through process improvement is likely to be even more critical with the expected increase in raw material prices for Li-ion batteries."
The balance between safety and performance has to be maintained to stoke market progression, especially in the EV and HEV industries, where thousands of Li-ion batteries are packed into one such vehicle.
If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company E: address, company website, city, state and country.
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Asia Pacific Secondary Lithium Battery Market / P4A4
Jessie Loh, Corporate Communications – Asia Pacific
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