Metal Bulletin Research Ten Year Strategic Outlook for the Primary Battery | Page 2

Battery Metals

7 Nickel Use in Batteries
of which the battery industry is a major component, making up about half of the market segment or
approximately 3% of the nickel market overall.
Figure 7.2: Nickel End-Use Markets, 2012 estimates

3.0% 3.0%
12.1%

Batteries (3%)

60.0%

14.9%

Foundry Metal (3%)
Coating and Plating (12.1%)
Other (14.9%)
Steel Alloys (7%)

7.0%

Stainless Steel (60%)

Source: MBR

Because of the growth of lithium-based batteries, much of the discussion regarding nickel use in batteries
revolves around the declining use of nickel-based batteries in areas where lithium is now growing. As such,
for a more detailed discussion of these end-use markets, see section 5. However, as two widely used
lithium-based battery chemistries use nickel (lithium-nickel-manganese-cobalt and lithium-nickel-cobaltaluminium), nickel’s decline in market share has more to do with its use in nickel-hydride and nickelcadmium batteries rather than its use in all batteries. The growth in lithium and nickel battery use will go
some way to offset the decline in primary nickel batteries but will not completely reverse it. Moreover, the
higher material costs of lithium-based batteries will continue to give nickel-based batteries an advantage for
lower-priced rechargeable electronics.

7.2 Portable Electronics

Traditionally, nickel-based batteries have been the rechargeable alternative to alkaline batteries and are
produced in the AAA, AA and 9V sizes. The high cost of lithium-based batteries makes them uncompetitive
for these battery sizes, but for smaller battery sizes, lithium-based batteries dominate. The use of nickelbased batteries is thus contingent on the continued production of portable electronics that use replaceable
batteries in the aforementioned sizes. The shift towards consumer electronics using non-changeable
batteries (such as certain mobile phones and table computers) and increasingly specialized battery shapes
mean a proportional decline in nickel usage in this market segment.
Furthermore, owing to the toxicity of cadmium, many jurisdictions are putting in place or have already put in
place restrictions to the use and disposal of nickel-cadmium batteries. An example of this is the European
Union’s battery directive. This is further driving down the use of nickel-cadmium batterie