China Is Leading Lithium-ion Battery Market And Accounting For 73% Of Global Production Capacity

- Aug 28, 2019-

The level of electrification of the entire world is getting higher and higher. Not only is the global electricity supply increasing, but the electrification of existing transportation infrastructure is rapidly evolving. By 2040, more than half of the cars on the road are expected to be powered by electricity.

Batteries play a key role in this transition, but a new kind of battery will be dominant in personal electronics, transportation and heavy industry applications. In fact, lithium batteries are steadily occupying a dominant position.

According to an analysis by Bloomberg NEF, the global lithium battery capacity in early 2019 was 31.6 billion GWh. China accounts for 73% of the production capacity, the United States accounts for 12%,which is far behind the production of China.

By 2025, global lithium battery capacity is expected to grow strongly to 1211 GWh, US production capacity is expected to grow, but the growth will slower than the global one. Therefore, the share of US of the global lithium battery manufacturing market will shrink further.

Tesla is trying to solve this problem by building its own battery factory, but for companies such as OneCharge in California that supply all types of batteries , it is too challenging to find suppliers locally. OneCharge CEO Alex Pisarev stressed the company's challenge: American manufacturers are happy to use lithium-ion batteries produced in the local. But this is unrealistic today,so we must continue to import from China.

This situation is the same as the solar panel market. Although the solar panel is invented by American engineer Russell Oh, but China is committed to leading the production of lithium-ion batteries in the world.

The low end solar panels helps drive the explosive growth of the photovoltaic industry, which creates a lot of jobs. But most of these battery panels are made in China.

China has a major advantage in work force, which allows it to dominate many manufacturing industries.

In addition, China’s storage and production of lithium far exceed those of America. In 2018, China ‘ s reserve of lithium are 1 million tons, almost 30 times that of America. Future trends indicate thatlithium-ion batteries will replace lead-acid batteries in the transportation and heavy equipment sectors. The transition to lithium batteries has brought many new challenges and opportunities, and China is holding another opportunity about clean energy manufacturing in its hands.