U.S. demand for battery and fuel cell materials is projected to increase by 5.9 percent annually through 2009 to a total of $3.4 billion, according to a study released by Cleveland-based market research firm the Freedonia Group.
The study predicts that the strongest increase in demand will be seen in carbon/graphite and polymers, although these materials comprised less than 10 percent of the overall battery and fuel cell materials market in 2004.
Growth in demand for metals and chemicals is expected to be slower, as the bulk of these materials are tied up to mature markets such as lead-acid and alkaline batteries. Although metals were the fastest growing material type from 1999 to 2004, much of this was due to a spike in metal prices during this period and advances are expected to slow through 2009 as raw material prices moderate.
The study predicts that smaller-volume materials such as platinum, lithium and nickel, as well as lithium and nickel chemicals, will advance more quickly as production of fuel cells and advanced batteries continues to rise.