China’s Lithium-Ion Battery Industry Tripled Output To 15.7 GWh In 2015
CCM, a “leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets,” has issued a new report on the nation’s lithium-ion battery industry.
According to CCM, China’s li-ion battery segment is experiencing tremendous growth. As Green Car Congress reports:
“In China, the development of alternative energy vehicles and the Li-ion battery sector are booming with the support of promotional policies from the Chinese government, according to new report from CCM…In May 2016 alone, nearly RMB2.6 billion (US$400 million) flowed into the Li-ion battery market, with Tianqi Lithium, Ganfeng Lithium and GEM CO., Ltd. putting in the most capital.”
How booming is the li-ion sector? Well, if you examine the output it’s obvious that the growth is huge:
“In 2014, China produced 5.43 billion Li-ion batteries, with a CAGR of around 40% and accounting for about 70% of the total output in the global, according to CCM’s new report Market and Development Trend of Li-ion Battery in China, 2016-2020.”
“The output of Li-ion battery exceeded 5 million for the first time in 2014 and reached 5.6 million in 2015, up by 3.13% year-in-year. As for the capacity, in 2015, the domestic output of power Li-ion battery increased to 15.7 GWh, triple than that of the last year.”
Sales of electric cars have been trending upwards at a rapid rate in China. So too has investment in battery factories in China. CCM adds:
“Nearly 80% of new investment worldwide in Li-on batteries was located in China in 2014, according to CCM. There were 25 Li-ion battery projects in China with the scale of investment above RMB100 million (US$15 million). Multinational enterprises such as Samsung SDI and LG Chem are active in developing Li-ion batteries in China.”
Samsung SDI’s investment in its newest battery factory in Xi’an China was the nation’s biggest (~$580 million) in all of 2015, but expansion is already underway at the Xi’an site, as well as at other battery factories throughout China.
Even Tesla is eyeing a factory in China, though it’s not yet known if this will actually happen, nor is it clear if Tesla intends to set up a battery factory in China too.
Source: Green Car Congress