China Will Lead The Global Battery Market By 2020

- Aug 08, 2017-

China now has more than 140 battery makers and is expected to account for a significant portion of the global battery industry in the future, foreign media reported.The global battery industry will be worth $240 billion over the next 20 years.In the context of rapid development of electric vehicle and battery industry, the future of new energy industry will become an important part of China's market development.

With the rapid development of electric vehicles, emerge a batch of electric vehicle battery manufacturers, familiar way Japan panasonic, South Korea's samsung and LG chemical, tesla's factory, China's byd, and so on.Bernstein, a Wall Street research and securities firm, expects electric vehicles to account for 40 percent of global car sales over the next 20 years.At present, the global electric car production has almost reached 100 million, this means that although no increase in global auto production, annual production electric car market will reach 40 million units.

Assuming the battery is close to $6,000, the global battery industry would be worth $240 billion.Given the advantages of electric vehicles in tackling environmental pollution, China's future will be in the lead both in electric vehicles and in the battery sector.

In order to meet the market demand of electric vehicles in the future, the capacity of the global electric vehicle battery needs to be greatly improved, which is why Chinese battery manufacturers are expanding rapidly.Tesla and panasonic announced in 2014 that they would build a 35,000-megawatt super-plant in 2014, when the world's battery capacity was less than 50 gigawatts.

The global battery industry has changed dramatically in the past three years, while China's battery capacity has grown to 125 gigawatts, and is expected to double to 250 gigawatts by 2020.Between 2020 and 2037, global battery capacity is expected to grow tenfold, equivalent to about 60 new superplants.

Battery development moves to China market

The battery technology was developed in Japan and then further developed in Korea, and now it has grown in the Chinese market.China already has more battery production in the world than Japan and is expected to account for more than 70 per cent of the global battery market by 2020.

Chinese electric market is now in booming period, Chinese car companies to also the favour of domestic products in the rising stage, this marks the prelude to China's future will also is a leader in the field of battery production.According to Roland Berger's e-mobility Index Q2 2017, China's homegrown lithium-ion battery has more than 90 percent of the country's branded electric vehicles.

As more and more Chinese companies want to drip into the battery industry in this area, are the Chinese government is also considering whether to policies to define the minimum capacity of battery manufacturers in China, thus to further improve China's global leading position in the field of battery.Although no official announcement has been made, the Chinese government may require that Chinese battery companies need to produce at least three to five gigawatts a year.In addition, the Chinese government released a draft law at the end of 2016 that requires battery companies to receive at least 8 gigawatts of annual capacity if they want government subsidies.It is also a sign that the Chinese government is planning to support companies with annual capacity of 40 gigawatts or more.

China's battery market leader

Panasonic is still the world's largest supplier of electric car batteries, and Chinese companies are catching up.Byd's 2016 car and bus production reached 500, 000, while the pure electric and plug-in hybrid vehicles produced almost 100, 000 vehicles.In line with byd's vertically integrated management strategy, it also has a battery capacity of 20 gigawatts, and is China's largest battery maker.In 2008, a subsidiary of warren buffett's Berkshire hathaway invested $230 million in byd, then a 10% stake in byd.Byd's current market value is about $16.9 billion.

CATL, another leading battery maker in China, was founded in 2011 and is based in ningde, fujian province.The ningde era mainly focuses on the production and energy storage system of lithium ion batteries, and has established production bases in qinghai, jiangsu and guangdong.Its battery capacity is estimated at 7.7 gigawatts and is expected to reach 50 gigawatts by 2020.

There are also some Chinese battery companies that deserve attention, such as tianjin's lishen battery and hangzhou wanxiang group.Li has built production bases in Beijing, Qingdao, suzhou, wuhan, ningbo, shenzhen and mianyang, and expects to have 20 gigawatts of battery capacity by 2020.Wanxiang is now China's largest private company and a leading supplier of auto parts to China.In 1994, wanxiang America corporation in the United States Illinois Elgin formally established, since then, universal in the acquisition of companies in the United States has more than 20, including A123 and Fisker Automotive (Fisker Automotive).