No matter how capable a portable CE device, they are rendered useless without sufficient battery power. In a world where handheld devices – cell phones, MP3 players, portable CD and DVD players, PDAs and digital cameras – are becoming more diminutive, more multi-functional and more prevalent, batteries will remain in the catbird seat. The premium set on batteries will bring their factory sales to a projected $6.6 billion in 2006, up from $6.2 billion in 2005.

** Includes primary batteries for consumer use

NanoMarkets LC, a market research and consulting firm, recently projected the market for batteries for mobile electronics, communications and computing will top $9 billion by the year 2010, with new battery chemistries expected to account for a growing percentage of that revenue. NanoMarkets also believe that firms such as Energizer, Duracell (Gillette), Panasonic, Sony, Toshiba and Ultralife will continue to dominate the power source market for mobile devices.

The big issue with most consumers is the often short time span between required battery changes or charges. NanoMarkets calls it the single biggest obstacle to the ubiquitous computing and smart phones, and says the current generation of lithium batteries, even while doubling their energy capacity during the past ten years, "simply doesn't have the capacity to support the multifunctional, always-on operating model that now is being pushed by handset and computer makers."

Hoping to improve their performance, battery manufacturers have continued to tweak the chemistry of their batteries, but this only goes so far. Panasonic's parent company, Matsushita Electric Industrial, announced in 2005 that it was developing with Intel Corp. rechargeable lithium-ion (Li-ion) batteries with enough efficiency to keep a notebook PC running for at least eight hours. Under this arrangement, Matsushita would work to improve its battery technology, while Intel would develop the power-saving circuit technology.

"The big news is lithium-ion batteries, particularly their impact on digital cameras, although some low-end digital cameras still require alkaline batteries," says Sara Bradford, research manager for the Power Systems Group at market researcher Frost & Sullivan. "The issue is usage," says Bradford. Can today's batteries handle all of the features and functions currently being offered in new mobile phones? Even Li-ion batteries are limited to 500-1,000 recharges, depending on usage.

The big three – Duracell, Energizer and Panasonic – have entered the next generation battery war with the introduction of new technology batteries – nickel oxyhydroxide (NiOOH) battery for Panasonic and Duracell and Energizer's e2 Lithium model.

Panasonic launched its NiOOH-based Oxyride Extreme Power battery in July 2005. It competes with alkaline and already is available at several major retailers. In February 2006, Duracell introduced its PowerPix, also a NiOOH battery. Energizer is promoting its e2 Lithium, which is available in all popular battery sizes, as the only AA 1.5-volt Li-ion battery.

Another version of Li-ion is lithium polymer batteries, used mostly with smartcards and radio frequency identification (RFID) tags, but also in military, medical and slim-line smartphone applications. Sales of these batteries are projected to reach $1 billion in 2010.

The highly-touted and long-awaited micro fuel cells will be next, if they can get past the prototype stage. So far, fuel cell companies only have been providing portable device manufacturers with prototypes or very small commercial orders.

The delay is not only a function of further developing the technology, but in lowering the cost of this new technology to acceptable consumer market levels. Another issue is developing industry standards for the types of fuels to be used in these new power sources. It appears that the first fuel cells used with CE products won't actually be small enough to be integrated into any portable device, but could very well be portable units themselves – actually accessories, probably about the size of a paperback book – that could be used to charge other portable devices. The industry will have to come to an agreement on a standard size for fuel cell cartridges, not only to enable the use of virtually any brand of fuel cell but because retailers will dedicate only so much shelf space for different sizes or types of cartridges.

The fuel for these new batteries is a critical issue. Currently, the micro fuel cell of choice is methanol, but this material has safety issues and wasn't allowed on commercial aircraft. This could change as Underwriters Laboratories and CSA America, which develops standards for fuel cells and related energy sectors in the U.S. market, are developing a new standard that will set requirements for micro fuel cell systems, including the cartridges. The possibility under discussion is that consumers would be able to carry two cigarette lighter-size fuel cell cartridges at a time on board an airplane.
Other new battery technologies are showing promise as well.

NEC has developed what it calls an Organic Radical Battery (ORB) that is based on a cell structure similar to Li-ion batteries. This new battery uses an organic compound called PTMA. It also offers higher power than Li-ion batteries of a similar size, but not quite the same energy density – a measure of how long the battery will last. A prototype of the battery measures 55 mm by 43 mm by 4 mm thick, or about the size of a stack of three credit cards. NEC says the ORB is still under development and may be two or three years away from retailer's shelves.

NEC also has developed an extremely thin (about 1/100th of an inch) rechargeable battery that the company claims can be recharged in about 30 seconds. But the battery's main claim to fame is its flexibility, which makes it ideal for smart ID cards and similar devices. NEC hasn't said when the new battery will be available commercially, or what products it will target with the new battery.

An environmentally friendly development is Sony's relatively new mercury-free silver oxide battery. Announced in the fall of 2004, Sony began delivering ten models of the battery worldwide in January 2005. They're mainly used for wrist watches and small thermometers, but they also are finding their way into mobile games.

NanoMarkets' analysis is mixed for new technologies in the battery sector. It says traditional battery technologies are still the standard, especially lithium, and probably will be for many years. But it also projects a market for fuel cells worth $1.6 billion by 2010, jumping to $2.7 billion in 2012.