CCM forecasts 5-fold growth in China Li-ion market by 2017 to meet EV demand
20 January 2015
Growing demand for electric vehicles (EVs) in China is triggering an explosion of investment in the lithium-ion battery industry, with China’s production of power lithium-ion batteries set to jump 400% by 2017, according to market research firm CCM. CCM expects China’s power lithium-ion battery market to grow from 4 billion Ah a year to 20 billion Ah a year over that period.
A total of 78,499 EVs were manufactured in China in 2014, an increase of almost 250% on 2013, and CCM forecasts that this figure will more than triple again in 2015 to reach 250,000.
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.
If the Chinese get into battery production in a big way, look out!
Musk's Gigafactory may be left in the halfpenny place.
Posted by: mahonj | 21 January 2015 at 02:58 AM
This is really a very high growth rate for EV batteries and EVs. It will surpise many posters if realized.
Increased mass production and competition will quickly reduce cost and selling price of both.
Can a US based mega battery plant compete against a dozen large Chinese plants? Will Panasonic-Tesla build a second large plant in China for the Asian fast growing market?
Posted by: HarveyD | 21 January 2015 at 07:29 AM