Latest information on what is happening at the leasing lithium-ion battery and battery materials manufacturers and comprehensive analysis of the lithium-ion battery materials market expected to keep growing into the future, based on the face-to-face interviews with the leading players in the market.

1. General overviews
   • Overview of the lithium-ion battery market: The market size in fiscal 2009 might stay in a similar size as in fiscal 2008. In the application field, the demand for drive systems will increase, in addition to the demand for hand-held and portable devices
   • Major materials as a whole: The market size in fiscal 2008 exceeded 200 billion yen, likely to grow to 234.55 billion yen in fiscal 2011.
   • Cathode materials market: Activities on non-cobalt cathode systems will accelerate. Adoption of new materials will start increasing for responding to the required performance features.
   • Anode materials market: Shifting from synthetic graphite to natural graphite. A key issue for the synthetic graphite is a reworking of the graphitization process.
   • Electrolyte market: Top priority challenge is to reduce the cost of LiPF6. The development of ionic liquid and solid electrolyte is also attracting the attentions.
   • Current-collecting materials market: The adoption of rolled cupper foil for anode cupper foil will progress in drive system applications.  As to the aluminum foil for cathode application, a radical reform of the industrial structure is urgently required.
   • Separators market: For securing the safety, the adoption of heat-resistant separator has started.
   • By overcoming the limitations, LIB (Lithium-ion battery) will move to the next phase of growth.
   • Perspectives of the battery materials for automotive applications
   • Safety is the top priority issue for the automotive applications. Manganese-based cathode material is being developed, followed by ternary (LiNiCoMnO2) based material, and finally by iron phosphate-based material in a long run.
   • Possibility of natural graphite is increasing for its high output performance and low cost.
   • For the time being, LiPF6 will be used as an electrolyte for automotive applications.
   • Ionic liquid and solid electrolyte will have a potential for the next generation battery.
   • As to the current-collecting materials for automotive applications, challenges include the improvement of smoothness, and support of new binders.
   • It is likely that thick film such as 35µm might be used as the separator for automotive application.
2. Market trend and prospects of the lithium-ion battery materials
   1. Cathode material
      • Competition among the cathode materials is intensifying.
      • Nickel and manganese-based materials for mobile phones, ternary materials for notebook PC. For cathode, cobalt-based materials were dominant in the past, but now a suitable material is beginning to be selected for each application.
      • Nichia Corporation ranks first in the cathode material, who is supplying to Sanyo Electric, the top ranking battery manufacturer. Umicore who is supplying to Korean battery manufacturers stands in the second place.
      • Based on the close relationship with the battery manufacturers, cathode material manufacturers are contributing to improving the competitiveness of their customers.
      • Tanaka Chemical with ternary and Nippon Denko with manganese-based are growing with non-cobalt-based materials.
      • In response to the requests of their users, Nichia and Umicore are moving to positive investment in plant and equipment.
      • Four scenarios in the cathode materials market
   2. Anode material
      • The anode materials market in fiscal 2008 has increased by 16% in value compared to the preceding year. From now on, the growth will slow down due to the price reduction.
      • In fiscal 2008, the ratio of synthetic graphite and natural graphite was 80 to 20. The use of natural graphite is increasing because of the needs for cost reduction and capacity improvement.
      • Hitachi Chemical achieved 40% market share in volume. The shipments of Mitsubishi Chemical and Hitachi Chemical with natural graphite are increasing.
      • While positive investment in plant and equipment is being announced, there is a trend observed for evaluating the market growth carefully.
      • Urgent issues are to reduce the cost of synthetic graphite and to utilize the natural graphite. Further, the enhancement of the development of metal-based and carbon-based anode materials is an important issue.
      • Along with the progress of technology development, the entry barriers will steadily increase. A key will be the cost down to achieve high quality at low price.
   3. Separator
      • Although the market grew by 2-digit in fiscal 2008, it is likely that the market will shrink in fiscal 2009. From fiscal 2010, however, the market will start growing again.
      • In value, Asahi Chemical is the top with 50% of the share, followed by CELGARD and Tonen Chemical. Although the technological entry barriers are high, there are increasing number of new manufacturers, such as Sumitomo Chemical and Teijin.
      • In order to respond to the user requirements, technology innovation has progressed in multi-layer processing and multi-layered products.
      • In addition to the conventional small diameter holes, the development of larger-hole diameter type has progresses.
      • In heat-resistant separator, Sumitomo Chemical and Teijin are taking the lead with the aramid.
   4. Electrolyte / electrolytic solution
      • In fiscal 2008, the growth in value has exceeded the growth in volume due to the unit price increase of electrolyte.
      • Stella Chemifa and Kanto Denka Kogyo who are good at purification technology, together with Morita Chemical Industries with strong price competitiveness hold 90% of the market share.
      • The top 2 companies plan to increase their production capacities by up to 40% in the future.
      • Electrolytic solution producers are trying to achieve the characteristics required by the users by utilizing their know-how accumulated in their “Functional Electrolytic Solution” and “Function Sharing Type Electrolytic Solution”.
      • Development of ionic solution has become full-scale again. In addition to the use alone, combination use with the other is being studied. Practical use of ionic solution might lead to potential change of the other elements.
      • Calcium Fluoride originally produced in China: Customs is an issue. Stella Chmifa and Morita Chemical Industries established mining facilities in China.
      • Some Korean and Chinese manufacturers have merged into the market. The leading 3 companies may be required to implement countermeasures against those new competitors.
   5. Current-collecting materials
      • Overwhelming share of the electrolytic copper foil vs. rolled copper foil which is increasing in the drive system applications. Activities are intensifying for establishing de fact standard for automotive applications.
      • In fiscal 2008, shipment has increased by over 16% both in value and in volume compared to the previous year. In fiscal 2009, the shipment will be in the same level or a minor increase from the preceding year, due to the sluggish demand for the batteries.
      • The share of overseas manufacturers is increasing in the anode copper foil market as well. Japanese suppliers might need to develop the copper foil which realizes easier foil handling at the user facilities.
      • Samples of electrolytic copper foil of 6µm thickness have been shipped out. Compatibility, however, of strength and thinness is still an issue. The demand for rolled copper foil is expected to increase in facility power supply applications in addition to the drive system applications.
      • In addition to thickness reduction and competitiveness enhancement, it will become important to cope with new anode active materials.
      • Primary thickness for high capacity type is 15µm, and for drive systems is 20µm. The thinnest foil of 12µm is adopted by some users.
      • Cathode current-collecting materials market has increased in fiscal 2008 by about 30% both in value and volume compared to the preceding year. In fiscal 2009, the market size will be in the same level or a little increase compared to fiscal 2007.
      • Nippon Foil Mfg. and Sumikei Aluminum Foil are the top 2 companies, together accounting for close to half of the total market.
      • Overseas suppliers are gradually expanding their business. Japanese suppliers may need to develop and promote “Fair Quality” foils to overseas potential users again, in addition to the improvement of cost competitiveness, and reinforcement of the relationship with Japanese existing users.
      • In addition to the drastic improvement of cost competitiveness, activities are progressing on the improvement of performance by tackling with the natural dioxide film formation.
3. Individual profiles and trend of the lithium-ion battery materials manufacturers
   • AGC Seimi Chemical Co., Ltd.
   • Toda Kogyo Corporation
   • Nippon Chemical Industrial Co., Ltd.
   • Tanaka Chemical Corporation
   • Honjo Chemical Corporation
   • Nihon Kagaku Sangyo Co., Ltd.
   • Nippon Denko Co., Ltd.
   • JFE MINERAL COMPANY, LTD.
   • Mitsui Engineering & Shipbuilding Co., Ltd.
   • Hitachi Chemical Co., Ltd.
   • JFE Chemical Corporation
   • Mitsubishi Chemical Corporation
   • Osaka Gas Chemicals Co., Ltd.
   • Mitsui Mining & Smelting Co., Ltd.
   • Celgard K.K.
   • Sumitomo Chemical Co.,Ltd.
   • Teijin Limited
   • Stella Chemifa Corporation
   • Kanto Denka Kogyo Co., Ltd.
   • MORITA CHEMICAL INDUSTRIES CO., LTD.
   • Toyo Gosei Co., Ltd.
   • Nippon Foil Mfg. Co., Ltd.
   • Sumikei Aluminum Foil Co., Ltd.
   • Toyo Aluminium K.K.
   • THE FURUKAWA ELECTRIC CO., LTD.
   • Nippon Denkai, Ltd.