400% Growth Predicted For China’s Lithium-Ion Automotive Battery Market By 2017


BYD battery test

Batteries are getting hot

How about ultimate battery pack for electric cars?

We need more batteries!

Market research firm CCM predicts that the lithium-ion battery market is beginning to enter its golden era in China following high growth of electric car sales.

According to CCM data, in 2014 manufacturers in China produced 78,499 EVs (including tiny vehicles), which is 250% more than in 2013. In 2015, sales will grow even faster to 250,000!

In such a case, the lithium-ion battery industry should jump by 400% by 2017.

CCM expects it to grow from 4 billion Ah a year to 20 billion Ah a year. Times 3.5 V (cell voltages differences among different chemistries), that would be 70 GWh (twice the size of the Tesla Gigafactory and two times more than world production in 2013).

“This rapid growth is sparking similar growth in demand for power lithium-ion batteries, Chinese EV brand BYD has already encountered difficulties meeting orders due to a shortage of batteries, according to CCM.

Samsung, LG, and Foxconn all invested more than RMB 2 billion (US$325 million) in China’s lithium-ion battery market in 2014, and CCM expects to see similar levels of investment in 2015.

Most domestic Chinese battery manufacturers currently lag behind their competitors in Japan, South Korea, and the US in terms of their ability to manufacture high performing EV batteries, though this gap is narrowing gradually, so there is a large opportunity for international players to gain market share in China’s power lithium-ion battery market in the coming years, the firm suggests.”

Source: Green Car Congress

Categories: Battery Tech, General

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2 Comments on "400% Growth Predicted For China’s Lithium-Ion Automotive Battery Market By 2017"

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I’ll be not merely glad, but ecstatic, if this claim of 400% growth by 2017 turns out to be true. The claims I’ve read about LG Chem don’t impress; $200 to $400 million invested in new battery factories don’t measure up to the $5 billion that Tesla Motors is investing in the Gigafactory. Sure, construction in China is cheaper, but I seriously doubt it’s -that- much cheaper. If all the li-ion battery makers in China, together, can equal or exceed the per-kWh output of the Gigafactory, and if they can increase production to that size in only two years, then perhaps the EV revolution can finally go into exponential growth. But far too many EVs in China are small, short-range NEVs… essentially glorified golf carts. Those require -far- less kWh than a highway-capable, full sized PEV. So I question the numbers in this article; I seriously doubt that China is going to produce double the Gigafactory’s output within just two years, or even equal the GF’s output. I suspect the numbers in this article assume that all (or nearly all) of those cars being made are full-sized, highway capable EVs of the type sold in the U.S. I have no… Read more »

BYD broke ground at the end of last year for what will supposedly be the world’s largest battery factory when it opens with an output of 6GWh/y. It should be fully operational sometimes next year.
Still a long way to go until 70GWh/y, though.
The point is, there is probably a lot of investment going on that we don’t necessarily know about.