Frost & Sullivan: Electric Vehicles Fuelling Demand for Battery Technology and Supply

LONDON, August 30, 2010 - The batteries used to propel electric vehicles (EVs) can be derived from
one of several chemistries, including lead acid, nickel metal hydride (NiMH)
and lithium-ion (Li-ion). The rapidly developing and evolving market for EVs
is boosting demand for new battery technologies and greater supply. The EV
industry has developed quickly, after decades of slow development, causing a
potential bottleneck in battery technology supply. The chemical industry has
recently discovered the opportunities to supply materials and components to
this market, triggering a race to develop products.

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New analysis from Frost & Sullivan (www.chemicals.frost.com),
Global Opportunity Analysis for Chemical and Material Suppliers in the
Electric Vehicle Batteries Market, finds that the EV Li-ion battery chemical
and materials market is expected to grow at a compound annual growth rate
(CAGR) of 125 per cent from 2010 to 2016. The products covered in this
research service are separators, anodes, cathodes, electrolytes as well as
binders and casings.

"All the major automotive manufacturers are developing EVs — considered
the next generation of vehicles and a means for original equipment
manufacturers (OEMs) to differentiate themselves to stay ahead of the
competition," says Frost & Sullivan's Global Programme Manager for
Transportation Chemicals, Robert Outram. "Escalating oil prices and
environmental concerns are driving governments to grant incentives and
encourage zero emission vehicles, further endorsing the importance of EVs and
stepping-up the demand for EV batteries."

Chemicals and materials suppliers in the EV batteries market can expect
exponential growth, as major OEMs launch their EV range with a plan for
commercial production.

However, only a few market participants can supply separators,
electrolytes, anodes and cathodes, particularly in Europe, potentially
causing a bottleneck in the entire EV batteries market. Chemical and battery
companies have failed to keep pace with the development of vehicles as
electric vehicles have been promised for many years. Up until recently the
market has failed to materialise causing chemical companies to develop a
"wait and see" attitude toward battery material development. Now the market
has finally taken off, very few companies are in a position to capitalise on
the opportunities.

"The market will face significant price pressure from downstream
companies," explains Outram. "Additionally, increasing competition from
low-cost production locations will intensify the profit margin reduction for
chemical suppliers."

With the EV batteries market showing signs of genuine potential in this
decade, chemical companies are beginning to rise to the challenge and are
partnering with the key battery producers to supply the required volumes and
enhance existing battery technology.

"EV batteries need considerable improvement in terms of energy storage
capacity, size, weight, and cost," concludes Outram. "The chemical industry
can help achieve these goals with the development of innovative materials,
chemicals, and solutions."

If you are interested in more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

Global Opportunity Analysis for Chemical and Material Suppliers in the
Electric Vehicle Batteries Market is part of the Chemicals & Materials Growth
Partnership Services programme, which also includes research in the following
markets: Automotive Adhesives Global Market Analysis, Strategic Analysis of
the Global Automotive Under-hood Plastics Market, Lightweighting Megatrend
Effect on Global Chemical Demand, and Global Markets for Plastics in
Passenger Vehicles. All research services included in subscriptions provide
detailed market opportunities and industry trends that have been evaluated
following extensive interviews with market participants.

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      Global Opportunity Analysis for Chemical and Material Suppliers in the
                       Electric Vehicle Batteries Market
                                      M581

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

    www.frost.com

Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com