LiBs are mostly used today for small consumer electronic products. We estimate that cell phones and notebook PCs account for around 40% each, with the remainder divided among digital cameras, power tools and other devices. We expect new applications to emerge in the coming years led by EVs as technological developments enable use of large-size LiBs.

Specific uses in mobile equipment (e.g. alternative engines, supplementary power devices) include electric-assist bicycles, electric motorcycles and EVs. Electric-assist bicycles have already come into wide use, and the number of cars and motorcycles equipped with the batteries will likely increase as well (automotive use is discussed in detail below). There are also new energy-generation storage batteries. Solar-power and wind-power generation equipment does not store energy, so it is necessary to add electrical storage devices. The storage batteries that have drawn the most attention are capacitors and electrolytic condensers, but some argue for LiB as well due to their high energy density and long life. (They are easy to attach to electricity generation systems because of their light weight and small size.) We see substantial long-term potential in these batteries for electricity storage systems.

For the same reasons, we also see good prospects for adoption of LiBs in the industrial field in construction equipment such as power tools as well as in forklifts and elevators, which presently mainly use lead batteries. Industrial equipment using long-life LiBs should be able to achieve higher capacity utilization and lower running costs. Other possible areas cover a broad range including portable medical equipment and uninterruptible power supply units for large data centers

Eoin Treacy's view Lithium ion batteries are a growth industry. Demand growth for handheld devices such as phones, laptops and tablet computers remains on an upward trajectory. In additional new areas of potential demand are evolving such as automobiles and potentially even power plant sized batteries that could increase the efficiency of renewable energy ventures.

There remain a significant number of technological hurdles that will need to be overcome so that lithium ion batteries reach their hoped for potential. Capital is increasingly been devoted to this cause and evidence to date is supportive of the view that the desired breakthroughs can be made.

I last reviewed lithium shares on January 10th and conducted a more thorough review of battery manufacturers on September 27th. The above report highlights some of the technological advantages possessed by a number of Japanese companies and adds considerably to my knowledge of the sector.


Mitsubishi Chemical Holdings broke successfully above ¥500 in December and encountered resistance last week near ¥600. Some consolidation of recent powerful gains is probably warranted but a sustained move back below ¥500 would be required to question medium-term recovery potential.

Toray Chemical rallied impressively this month and is now testing the upper side of its 18-month range. While somewhat overextended in the short-term a clear downward dynamic would be required to check potential for a successful upward break.

Stella Chemifa Corp was an early leader from the 2008 lows and found support near ¥3000 from April 2009. It broke upwards from its six-month range last month and a sustained move below the 200-day MA would be required to question medium-term recovery potential.

Toda Kogyo Corp rallied by almost 400% in 2009 and spent much of the last year consolidating that advance. It has held a progression of higher reaction lows since July and is now testing the peak near ¥1000. A sustained move below ¥775 would be required to question medium-term upside potential.

Asahi Kasei completed a first step above its base in December and a sustained move below ¥500 would be required to question recovery potential.

Cheil Industries is a Korean company that shares a common pattern with LG Chem. It remains in an impressive medium-term uptrend defined by an unbroken progression of higher reaction lows.