Despite recent massive recalls of batteries by major PC manufacturers, the world wide battery demand is projected to rise at nearly 7 percent per year, reaching $73.6 billion by 2010.

The Freedonia Group, an international business research company, also predicted on Tuesday that China will record the largest gains of any national market, stimulated by healthy economic growth, ongoing industrialization efforts and rising per capita income.

Annual demand in the country will climb by more than $7 billion from 2005 to 2010, the firm stated, and China will surpass the U.S. to become the largest battery market in the world.

Although the rate of growth will be less robust than in developing parts of the world, battery demand in the U.S., Western Europe and Japan will accelerate through 2010.