US demand to grow 3.9% annually through 2011.
US demand for materials used in the production of batteries and fuel cells will rise 3.9 percent per year to $3.7 billion in 2011. Gains will be driven by increasing production of high-performance battery products, especially lithium and nickel metal hydride (Ni-MH) types, due to the enormous popularity of high-drain portable electronic devices. Additionally, demand for fuel cell materials will rise nearly fivefold from a small base, as fuel cell products begin to enjoy commercial success. However, gains will be limited by a less favorable outlook for more mature and outdated battery types, such as lead-acid, zinc-carbon and nickelcadmium chemistries.

Metals to stay leading material in batteries, fuel cells.
Metals will continue to be the leading material type in batteries and fuel cells through 2011, accounting for about twothirds of demand. Metal prices spiked during the 2001-2006 period, spurring strong value gains for metals in batteries and fuel cells. However, advances through 2011 will be restrained by an expected moderation in metal prices and sluggish demand in the sizeable lead metal market. More rapid growth will be seen for polymers and carbon/graphite materials, which are used in fast-growing lithium and Ni-MH battery chemistries as well as fuel cells. Gains in demand for other materials will also be strong, especially fumed silica and glass fibers used in valve-regulated lead-acid batteries, as well as ceramics in solid oxide fuel cells.

Performance additives, catalysts to lead gains by function.
Among functional categories for battery and fuel cell materials, most rapid gains will be for performance additive and catalyst materials, which are expected to nearly double through 2011. Growth will be driven by the ongoing need to improve battery performance and durability, as well as the surging demand for fuel cells, which use expensive platinum catalysts. Active materials are the leading functional outlet, constituting more than half of materials demand in 2006, but will experience below-average increases in demand. Battery containers and current collectors will exhibit similarly slow growth, with value gains restrained by a moderation in metal prices and increasing cost reduction efforts.

Fuel cells, primary batteries to be most rapidly growing applications.
Secondary batteries accounted for nearly 70 percent of battery and fuel cell material demand in 2006, due to the enormous size of the lead-acid battery market. However, faster gains are forecast for materials in primary batteries, fueled by a robust increases in primary lithium battery shipments and continued strength in the bedrock alkaline battery market. Stellar growth is expected for fuel cell materials, rising from less than two percent of the market in 2006 to over seven percent in 2011, as products such as proton-exchange membrane fuel cells and solid oxide fuel cells achieve more substantial commercial acceptance.

Study coverage
This study presents historical demand data for 1996, 2001 and 2006, as well as forecasts for 2011 and 2016 by material type (e.g., chemicals, polymers, metals, carbon/graphite), function (e.g., active materials, current collectors, containers, performance additives, catalysts, separators) and application (primary batteries, secondary batteries, fuel cells).
The study also considers market environment factors, assesses industry structure, evaluates market share data and profiles 37 leading industry competitors including Doe Run Resources, DuPont, East Penn Manufacturing, Exide Technologies, Falconbridge, Johnson-Matthey, RSR, Sanders Lead and Thomas Steel Strip.

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Economic Environment 5
Durable Goods Manufacturing Outlook 9
Battery Industry Overview 11
Primary Batteries 13
Secondary Batteries 16
Fuel Cell Industry Outlook 19
Technology Trends 22
Batteries 23
Basic Technology 24
Recent Developments 25
Fuel Cells 28
Basic Technology 29
Fuel Cell Chemistries 31
Battery & Fuel Cell Nanomaterials 32
Environmental & Regulatory Issues 34
Recycling 35
Health & Safety 37

III. BATTERY & FUEL CELL MATERIALS OVERVIEW 39
General 39
Demand by Type 40
Demand by Function 42
Demand by Application 44

IV. BATTERY MATERIALS 46
General 46
Demand by Type 47
Metals 49
Lead 51
Steel 53
Zinc 55
Other Metals 56
Chemicals 60
Metallic Chemicals 62
Other Chemicals 67
Polymers 70
Polyolefins 72
Fluoropolymers 72
Other Polymers 73
Carbon/Graphite 74
Other Materials 76
Silica 77
Glass Fibers 78
Ceramics 79
All Other Materials 79
Demand by Function 80
Active Materials 82
Current Collectors 84
Containers 86
Performance Additives 88
Separators 90
Electrolytes 92
Other Functions 94
Terminals 95
Gaskets & Seals 96
Catalysts 96
All Other Functions 97
Demand by Application 98
Primary Batteries 100
Alkaline 103
Primary Lithium 106
Zinc-Air 109
Zinc-Carbon 111
Other Primary 113
Secondary Batteries 115
Lead-Acid 117
Nickel Metal Hydride 122
Rechargeable Lithium 125
Nickel-Cadmium 127
Other Secondary 129

V. FUEL CELL MATERIALS 132
General 132
Demand by Type 133
Metals 135
Platinum 136
Other Metals 137
Polymers 138
Fluoropolymers 139
Other Polymers 140
Carbon/Graphite 141
Ceramics 142
Chemicals & Other 144
Demand by Function 145
Catalysts 147
Electrolytes 148
Electrodes 150
Plates 151
Other Functions 153
Fuel Storage 155
All Other Functions 155
Demand by Application 155
Proton Exchange Membrane 157
Phosphoric Acid 159
Solid Oxide 160
Alkaline 162
Molten Carbonate 163
Direct Methanol 164
Other 165

VI. INDUSTRY STRUCTURE 167
General 167
Market Share 170
Manufacturing 175
Battery Materials 175
Fuel Cell Materials 176
Research & Product Development 177
Marketing & Distribution 181
Acquisitions & Divestitures 183
Company Profiles 185
Advanced Energy Technology, see GrafTech International
Ames Goldsmith Corporation 186
AMETEK Incorporated 187
Asbury Carbons Incorporated 188
Ballard Power Systems Incorporated 189
BASF AG 192
Bayer AG 194
Big River Zinc Corporation, see ZincOx Resources plc
Bulk Molding Compounds Incorporated 195
Cabot Corporation 196
Celanese Corporation 199
Chemetall GmbH, see Rockwood Holdings Incorporated
Companhia Vale do Rio Doce 201
Corus Group plc, see Tata Group
CVRD Inco Limited, see Companhia Vale do Rio Doce
Delta plc 203
Doe Run Resources Corporation 204
DuPont (EI) de Nemours 206
East Penn Manufacturing Company Incorporated 209
Energizer Holdings Incorporated 210
Energy Conversion Devices Incorporated 211
Eramet SA 213
Evanite Fiber Corporation, see Hollingsworth & Vose
Exide Technologies 215
Falconbridge Limited, see Xstrata plc
FMC Corporation 216
Gopher Resource Corporation 217
GrafTech International Limited 218
Gruppo De Nora 220
Hammond Group Incorporated 222
Hollingsworth & Vose Company 223
Horsehead Holding Corporation 225
Inco Limited, see Companhia Vale do Rio Doce
International Metals Reclamation Company, see Companhia Vale do Rio Doce
Johnson Matthey plc 226
Manganese Metal Company Pty Limited, see Delta plc
Novamet Specialty Products, see Companhia Vale do Rio Doce
Nyrstar SA, see Umicore Group
OM Group Incorporated 228
Ovonic Battery Company, see Energy Conversion Devices
Ovonic Fuel Cell Company, see Energy Conversion Devices
PEMEAS GmbH, see BASF AG
Rockwood Holdings Incorporated 230
RSR Corporation 231
Sanders Lead Company Incorporated 232
Starck (HC) GmbH & Company KG 232
Superior Graphite Company 234
Tata Group 235
3M Company 236
Ticona, see Celanese Corporation
Tronox Incorporated 238
Umicore Group 239
Xstrata plc 242
ZincOx Resources plc 244

LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Economic Indicators 9
2 Durable Goods Shipments 10
3 Battery Supply & Demand 13
4 Primary Battery Supply & Demand 16
5 Secondary Battery Supply & Demand 19
6 Fuel Cell Shipments by Type 22
7 Nanomaterials Demand in Batteries & Fuel Cells 34

SECTION III -- BATTERY & FUEL CELL MATERIALS OVERVIEW
1 Battery & Fuel Cell Materials Demand by Type 41
2 Battery & Fuel Cell Materials Demand by Function 43
3 Battery & Fuel Cell Materials Demand by Application 45

SECTION IV -- BATTERY MATERIALS
1 Battery Materials Demand by Type 48
2 Metals Demand in Batteries 50
3 Lead Demand in Batteries 53
4 Steel Demand in Batteries 54
5 Zinc Demand in Batteries 56
6 Other Metals Demand in Batteries 57
7 Chemicals Demand in Batteries 61
8 Metallic Chemicals Demand in Batteries 63
9 Other Chemicals Demand in Batteries 68
10 Polymers Demand in Batteries 71
11 Carbon/Graphite Demand in Batteries 75
12 Other Materials Demand in Batteries 77
13 Battery Materials Demand by Function 81
14 Battery Active Materials Demand 84
15 Battery Current Collector Materials Demand 86
16 Battery Container Materials Demand 88
17 Battery Performance Additive Materials Demand 90
18 Battery Separator Materials Demand 92
19 Battery Electrolyte Materials Demand 94
20 Battery Materials Demand for Other Functions 95
21 Battery Materials Demand by Application 99
22 Primary Battery Materials Demand 102
23 Alkaline Battery Materials Demand 105
24 Primary Lithium Battery Materials Demand 108
25 Zinc-Air Battery Materials Demand 110
26 Zinc-Carbon Battery Materials Demand 112
27 Other Primary Battery Materials Demand 114
28 Secondary Battery Materials Demand 116
29 Lead-Acid Battery Materials Demand 118
30 Metals Demand in Lead-Acid Batteries 119
31 Chemicals Demand in Lead-Acid Batteries 120
32 Polymers Demand in Lead-Acid Batteries 121
33 Other Materials Demand in Lead-Acid Batteries 122
34 Nickel Metal Hydride Battery Materials Demand 124
35 Rechargeable Lithium Battery Materials Demand 127
36 Nickel-Cadmium Battery Materials Demand 129
37 Other Secondary Battery Materials Demand 131

SECTION V -- FUEL CELL MATERIALS
1 Fuel Cell Materials Demand by Type 134
2 Metals Demand in Fuel Cells 136
3 Polymers Demand in Fuel Cells 139
4 Carbon/Graphite Demand in Fuel Cells 142
5 Ceramics Demand in Fuel Cells 143
6 Chemicals & Other Materials Demand in Fuel Cells 145
7 Fuel Cell Materials Demand by Function 146
8 Fuel Cell Catalyst Materials Demand 148
9 Fuel Cell Electrolyte Materials Demand 150
10 Fuel Cell Electrode Materials Demand 151
11 Fuel Cell Plate Materials Demand 153
12 Fuel Cell Materials Demand for Other Functions 154
13 Fuel Cell Materials Demand by Application 156

SECTION VI -- INDUSTRY STRUCTURE
1 US Battery & Fuel Cell Materials Sales by Company, 2006 169
2 Selected Cooperative Agreements 179
3 Selected Acquisitions & Divestitures 184

LIST OF CHARTS
CHART NUMBER PAGE
SECTION II -- MARKET ENVIRONMENT
1 Basic Battery Construction 25
2 Basic Fuel Cell Construction 31
SECTION III -- BATTERY & FUEL CELL MATERIALS OVERVIEW
1 Battery & Fuel Cell Materials Demand by Type, 2006 41
2 Battery & Fuel Cell Materials Demand by Function, 2006 43
3 Battery & Fuel Cell Materials Demand by Application,
1996-2016 45
SECTION IV -- BATTERY MATERIALS
1 Battery Materials Demand by Type, 2006 49
2 Battery Materials Demand by Function, 2006 81
3 Battery Materials Demand by Application, 2006 99
SECTION V -- FUEL CELL MATERIALS
1 Fuel Cell Materials Demand by Type, 2006 135
2 Fuel Cell Materials Demand by Function, 2006 147
3 Fuel Cell Materials Demand by Application, 2006 157
SECTION VI -- INDUSTRY STRUCTURE
1 US Battery & Fuel Cell Materials Market Share, 2006 171