Journal of Power Sources, 38 (1992) 39-45 39

Status of the lead/acid battery industry in Taiwan

Richard Chen Department of Marketing. Taiwan Kobe Battery Co., Ltd., 4th Floor, No. 24, Sect. 2, Chung Chemg Road, Shih-Lin, Taipei (Taiwan)

Abstract

Since 1985, the marked appreciation of the Taiwanese currency has exerted a strong influence on the local lead/acid battery industry. In particular, imports of automotive and motorcycle batteries have risen steadily. By contrast, there has been a significant increase in the production of small sealed batteries. The battery industry has recognized the need both to satisfy new environmental requirements and to invest in advanced equipment for battery manufacture.

Growth of lead/acid battery industry and the economic background

Pre-1960 Taiwan, before 1960, was an underdeveloping economy. The GNP in 1960 was

only US$ 1.7 billion and the per capita GNP was only US$ 154. Agricultural activities accounted for most of the GNP. The number of vehicles in 1960 was only 48 475 and electricity supplies were not available to most rural areas. Battery manufacturing at that time concentrated on the production of 8 V, 40 A h units for the lighting of farm houses. Charging of these batteries was conducted only in certain specific battery shops in the cities.

1960-1970 Government encouragement of foreign investments and technology transfers con-

tributed to the high economic growth of the 1960s. The GNP in 1970 was 3.3 times that of 1960, i.e., US$ 5.6 billion and the per capita GNP rose by 252% to US$ 389. Motorcycles were more affordable and the establishment of a motorcycle industry contributed to the increase in the number of vehicles. The latter was 819 104, i.e., 16.8 times that of 1960; the number of motorcycles in the same year was 701421 compared with 26 468 in 1960. The development of the motorcycle and automotive battery industries also began at that time.

19714980 The GNP in 1980 was 7.3 times that of 1970 (US$41.4 billion) and the per capita

GNP was 6 times greater (US$ 2344). The motorcycle industry experienced its fastest growth during this period. The number of motorcycles in 1980 was 4 million, thus showing a six-fold growth in 10 years. The motorcycle battery manufacturers numbered a record 30 companies. In addition, 70% of the total battery production was exported to all regions of the world.

0378-7753/92/$5.00 0 1992 - Elsevier Sequoia. All rights reserved

1981-1990

The GNP in 1990 was 4 times that of 1980 (US$ 161.75 billion). The per capita GNP exhibited a 3.4-fold increase in 10 years. The growth of cars, buses, and trucks was most significant in this period. The total number of vehicles in 1990 was 11.5 million, compared with 4.7 million in 1980. The manufacture and export of automotive batteries also increased at a very high pace from the beginning of this period. Political, social and economic structure caused, however, a marked change in the situation during the latter half of the decade. The shortage of labour, the implementation of strict laws to protect the environment, and the surging Taiwanese dollar greatly effected the battery industry from 1985 onwards. The number of battery manufacturers decreased to below 15. The major manufacturers invested heavily in production automation to replace manual labour.

The production of small sealed batteries also began in the later half of the 1980s and its place in the battery industry is gaining in importance. The author’s company - CSB Battery - also began producing sealed batteries in 1986 in a joint-venture with Shin-Kobe Electric Machinery Co., Ltd.

Figures 1 and 2, together with Table 1, summarize the above factors that have influenced the growth of the lead/acid battery industry in Taiwan.

Battery manufacturers

Table 2 provides a list of the major battery manufacturers presently in Taiwan and their types of products. It can be seen that the actual production volume of car batteries is only 200 000 units per month against a total capacity of 410 000 units.

, J() ___--_ .._._ ._--_ ..___ .-- ..---_._.-.-_ ..____-. __ __._._._-.._---.___- . ..-. ---_-

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(iD 65 711 75 Em L31 82 83 8,! i3!i t36 ;37 RR (.; L-d 90

US$ Year

Fig. 1. Taiwan GNP for the years 1960-1990.

41

t;ij f(7 ,iil: 3’ I 1111

Year

Growth of population (0) and vehicles (+) in Taiwan between 1960 and 1990.

This imbalance is mainly due to a labour shortage and to environmental protection that contribute to a high cost. The result is a rapid increase of foreign battery imports (see Figs. 3 and 4). The same conditions apply to motorcycle batteries.

The data in Table 2 also show a large volume of smali sealed batteries. This market is likely to become even more significant in future years. The models produced in Taiwan now satisfy all the requirement of the world market.

Raw-material industry

Battery case All automotive batteries in Taiwan now use polypropylene cases that are produced

locally. Hard-rubber cases are no longer in use. Small sealed batteries use ABS cases and these are also fabricated in Taiwan.

Separators Pulp separator is still the major material. Nevertheless, the use of ‘white coloured

plain form’ separators, that give higher cranking power, is becoming a trend in the industry.

The largest manufacturer of the above types of separators is Anpei Enterprise Co., Ltd. located in the south of Taiwan.

The absorptive glass mat (AGM), or so-called M-separator, for sealed batteries is imported from Japan and the USA.

Lead Lead of 99.99% purity is imported. The major supplier is Pasminco. Lead of

99.97% purity is both imported and also refined in Taiwan. Lead-antimony alloys are

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TABLE 2

Battery manufacturers in Taiwan

Name

Taiwan Kobe (CSB) Yuasa Taiwan GS Taiwan Wei Long Ya Ter Cheng Kwang Maan Shyang Others Total capacity Total volume’

Type of battery

Car Motorcycle

X X

X X

X X

X X

X X

X X

X X

418000 940000 198100 610000

Small sealed

X

X

X

X

X

X

X

1252000 105ooo0

Industrial

X

X

“In units per month.

10

85 B(i 67 i48 89 !!,‘I ‘9 I

Year (*estimate)

Fig. 3. Export (0) and import (0) of lead/acid batteries in Taiwan, by weight (kg).

supplied by local companies and minor quantities are imported. By contrast, lead-calcium alloys are mostly imported.

From 1989, due to strict environmental protection laws, lead refining companies in Taiwan have been either closed permanently or temporarily by order of the government. This has brought about a large increase in imported lead since that time (see Figs. 5 and 6). A more serious problem exists with the treatment of scrap metal and the recycling of spent batteries.

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Fig. 4. Export (0) and import (0) of lead/acid batteries in Taiwan, by value (US$).

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Fig. 5. Export (0) and import (0) of refined unwrought lead in Taiwan, by weight (kg).

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Fig. 6. Export (Cl) and import (0) of refined unwrought lead in Taiwan, by value (USS).

Conclusions

The battery industry in Taiwan is expected to continue its growth in future years. The output of automotive batteries will increase at a constant rate but motorcycle batteries will decrease. The fastest growth will be exhibited by small sealed batteries. All the battery manufacturers will place greater emphasis on environmental protection measures. There will be a heavy investment in automated equipment for battery production.