The Impact of the Top 3 Strategic Imperatives on the Thin Film Batteries Industry

DISRUPTIVE TECHNOLOGIES

Why

• The global focus on automation drives the exponential surge in the use of novel and advanced sensing mechanisms based on micro-sensing and the Internet of Things (IoT) devices. These sensing mechanisms could induce autonomy and transform conventional operating methods for diverse sectors.

Frost Perspective

• Manufacturers typically make automation-enabling devices in thin formats and need a reliable and compact energy storage solution that can operate independently of the power supply.
• Building management, industrial automation, agriculture, and retail are primary sectors liable to see disruptive changes from the adoption of thin film battery-powered automation solutions.

TRANSFORMATIVE MEGA TRENDS

Why

• With the sustained transformation in the electronics sector toward miniaturization, the world is seeing an increased uptake of microelectronic systems in several sectors, such as healthcare, consumer electronics, asset monitoring, and logistics. Thin film batteries provide a unique proposition to serve as an energy storage solution for these novel applications.

Frost Perspective

• In the quest to fabricate lightweight, smaller, and portable electronic devices, miniaturization has emerged as one of the primary trends within the global electronics sector.
• Miniaturization necessitates using micro- and conformable energy storage solutions based on thin film batteries, providing a significant sector tailwind for the thin film battery adoption.

GEOPOLITICAL CHAOS

Why

• Thin film batteries use metals such as lithium, manganese, and cobalt. However, the global geopolitical scenario affects the supply chain of these metals. Ongoing conflicts, including the Ukrainian-Russo War and the Israeli-Palestinian conflict, are potentially detrimental to securing the supply chain for the constituent materials of thin film batteries.

Frost Perspective

• Australia and Chile produce more than 70% of lithium globally, and most commercial-scale global players meet their lithium demand by importing from these regions.
• The ongoing geopolitical conflicts could negatively affect the shipping sector’s operation, leading to uncertainty about raw material availability for thin film batteries.

Scope of Analysis

• Space utilization efficiency and flexibility are primary parameters where thin film batteries outshine conventional rigid format batteries because they can conform to various shapes easily.
• The technology landscape expands on the characteristics and classification of thin film batteries. This section focuses on constituent materials for battery fabrication and typical application areas catalyzing the adoption of thin film batteries.
• The innovations ecosystem emphasizes top players in the thin film battery commercial space, explores the global patent landscape, and sheds light on global stakeholders in the sector.
• The global growth opportunities within the domain of thin film batteries act as a primary focus for relevant stakeholders and define the direction of growth of the thin film battery market.

Growth Drivers

• Easy Integration: The easy integrability of thin film batteries is their most distinct advantage, arising from the thin form factor and inherent flexibility, which enables them to conform to many geometries and shapes, unlike conventional rigid batteries. Thin film batteries provide superior space utilization for energy storage in target applications.
• Scalable Fabrication Processes: Manufacturing thin film batteries typically uses printing-based fabrication, such as physical vapor deposition (sputtering and pulsed layer). These processes enable precise material deposition and allow rapid manufacturing scaling, reducing the time-to-market for new and emerging products and increasing the cost-effectiveness of fabrication at scale.
• Low Self-discharge: Thin film batteries demonstrate a low self-discharge rate, another primary strength, which allows the batteries to retain their charge over long periods without significant loss. Manufacturers such as Molex provide thin film batteries that retain up to 70% of their initial charge after 2 years. Low self-discharge enables thin film battery use in infrequently used applications such as sensing devices.

Growth Restraints

• Limited Charge Carrying Capacity: Manufacturers make thin film batteries using compact layers of active materials and connections via thin metal contacts to the external circuit. The component's compactness and small size limits the current the battery can handle during the charging and discharging processes. These shortcomings lead to longer charging times and lower power delivery, acting as a limitation for several application areas.
• Challenges with Integration: The global electronics market standards (voltage and current range) have developed and evolved in sync with the rigid battery format over the past several decades. Therefore, utilizing thin film batteries instead of conventional ones in small electronics applications may be an issue because the electrical parameters may not be compatible.
• Environmental Concerns: Primary thin film batteries are not rechargeable, and users must discard them after short use, increasing non-biodegradable e-waste. The end-of-life disposal of these batteries is a significant hurdle because several constituent materials have negative environmental consequences, leaching out dangerous chemicals at the disposal site.