Metal Bulletin Research Ten Year Strategic Outlook for the Primary Battery

Battery Metals

7 Nickel Use in Batteries
7.1 Introduction

The global nickel battery market can principally be divided into two
distinct battery chemistries: nickel-cadmium (Ni-Cd) and nickel-metal
hydride (Ni-MH). However, there are also several much less common
battery technologies containing nickel, including nickel-zinc, nickeliron, nickel-sodium chloride and even some lithium-based batteries
(though the latter are experimental and do not have a major end-use
market). Within this sector the use of nickel-metal hydride dominates
revenue streams, as the nickel-cadmium market is in decline.
However, overall the use of nickel in batteries is being superseded by
lithium, as consumer electronics shift away from replaceable battery
packs to built-in battery packs.
IN THIS CHAPTER
7.1 Introduction

71

7.2 Portable
Electronics

72

7.3 Power Tools

72

7.4 Electric and Hybrid
Electric Vehicles 73

Nickel-based batteries are used primarily for portable electronics, power tools and electric
vehicles. They can be viewed as the predecessor technology to lithium-ion batteries and the
battery industry is trending away from nickel-based batteries for many applications. While
lithium-based batteries are more efficient and can be built in more varying shapes, nickel is
typically a cheaper raw material than lithium carbonate. The following figure illustrates the
decline of nickel-based batteries in the portable electronics rechargeable battery market
segment over the past decade.
Figure 7.1: Portable Electronics Rechargeable Battery Market Shares by Volume

7.5 Other Uses of
Nickel in Batteries 73

100%
90%
80%

74%

2002 Market Volume Share

70%

2012 Market Volume Share

60%
50%

38%

40%

45%

30%
20%
10%

16% 15%

9%

1%

0%
Lithium based

Nickel-cadmium

Ni-Mh

2%

Other

Source: MBR/Frost Sullivan

A nickel-based battery requires 3-6kg of nickel per kWh. Nickel-cadmium and nickel-metal
hydride batteries typically have nickel contents of 3.5kg/kWh and 6.5-7kg/kWh respectively.
Lithium-nickel and nickel-sodium chloride batteries will have approximately 3kg/kWh and
2.5kg/kWh nickel contents respectively.
At present, about 65% of nickel used in batteries goes into the smaller types used for portable
devices and power tools, the remainder going into industrial applications and larger vehicle
batteries. Batteries make up a minor, but not insignificant, section of the nickel end-use market.
Between 6% and 7% of annual global nickel demand goes into chemical applications of nickel,
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