- The Chinese government has formed medium and Long-Term Development Plan for Automotive Industry about the annual output of new energy vehicles.
- The government is actively developing plans and taking actions to promote the alternative electric vehicles. This is said to increase the demand for Lithium Ion Batteries in China.
- The demand for Lithium-ion battery in China is expected to grow at a rapid pace majorly due to increase in the use of retired lithium-ion batteries in telecom industry in the country.
GURUGRAM, India, December 19, 2018 : Increased Initiatives by the Government: The government has adapted the smart grid initiative which is expected to support the demand for lithium-ion battery in the China. The Government of China is focusing on energy diversification and has a target of achieving 680 GW renewable capacity by 2020, out of which 270 GW will be generated from solar energy and 210 GW from Wind energy. This would require extensive deployment of lithium ion batteries.
Promotion of AEV (Alternate Electric Vehicle): In China, government has framed a complex policy/ regulation which will require a sizable portion of car manufacturer’s production or imports to be green by 2019, along with escalating goals thereafter. Therefore, all major manufacturers operating in China-from global giants Toyota Motor and General Motors to domestic players BYD and BAIC Motor-have to meet minimum requirements for producing new-energy vehicles, or NEVs (plug-in hybrids, pure-battery electrics, and fuel-cell autos). It has been anticipated that Ford will introduce at least 15 hybrid cars and EVs in China by the year 2025.
Use of Retired Lithium-ion Batteries: Ministry of Industry and Information Technology (MIIT) of China has undergone a pilot program of recycling and second use of retired lithium-ion batteries which were used in EVs in 17 major regions and cities of China. China Tower (world’s largest operator of telecommunication of towers) is included alone in this pilot study program. Currently (2018), in China only 2.0% of battery power is deployed using lithium-ion batteries in China Towers while the majority of the storage battery is still generated via lead-acid batteries. It is anticipated that in the upcoming years, China towers will spend around CNY 20 billion to replace lead acid batteries which will further increase the output volume generated through lithium-ion batteries in China.
Analysts at Ken Research in their latest publication “China Lithium Ion Battery Market Outlook to2022 – By Application (Consumer Electronics, Power Storage and Energy Storage), By Type (Ternary, Lithium-Ion Phosphate, Lithium Manganese Oxide and Others), By Shape (Square Shaped, Cylindrical and Soft Pack Battery)” believe that the Battery Market in China will continue to grow with Chinese government emphasis on capacity addition plan of renewable energy over the forecast period coupled with increase in sale of electric vehicles in the country.
The market is expected to register a positive CAGR of 50.8% in terms of output volume during the forecast period 2018-2022, albeit the increase in competition from new companies entering the market.