In 2006, the EU established a Battery Directive that banned the use of cadmium in batteries when an alternative was available. However at the time they were not able to agree upon if an acceptable alternative for power tools was available which is a condition for replacing NiCd in these batteries. The major part of this report is consequently spent comparing the various types of batteries that can be used in power tools. The report also covers other consequences that a ban on cadmium could be expected to cause.  This report has been prepared in response to government instructions for use as background information for the work of the EC Commission on the decision as to whether cadmium is to be allowed in power tool batteries. This process will begin in 2009 and the EC Commission will take a decision on this issue in 2010.