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