CCM: More investment into China’s Li-ion battery industry 07-08-2016

In May-June, 2016, there was a hot investment in the Chinese Li-ion battery industry. Meanwhile, at least 5 listed companies have announced their plans of production expansion, private placement and enterprise acquisition, namely Guoxuan High-tech Co., Ltd. (Guoxuan High-Tech), Ningbo Shanshan Co., Ltd. (Ningbo Shanshan), Zhejiang Qianjiang Motorcycle Co., Ltd. (Qianjiang Motorcycle), Zhejiang Narada Power Source Co., Ltd. (Narada), and Guangdong Tonze Electric Co., Ltd. (Guangdong Tonze).  


CCM Li-ion battery investment China

                                                                                          Source: Internet


On 4 May, 2016, Guoxuan High-Tech announced that its 3rd-phase 350 MAh/a ternary Li-ion battery project in Hefei City, Anhui Province and its 300 MAh/a ternary Li-ion battery project in Laixi of Qingdao City, Shandong Province will formally go into production in Q3 2016


On 6 May, 2016, Ningbo Shanshan planned to raise <= USD523.61 million (RMB3.45 billion) for its projects of Li-ion battery and alternative energy vehicle


On 13 June, 2016, Qianjiang Motorcycle said that it was expanding its production capacity of Li-ion battery, aiming to transform and upgrade its business of motorcycle manufacturing to the integrated businesses of high-end large-displacement motorcycles and Li-ion battery, etc.


On 14 June, 2016, Narada announced its plan of investing USD270.15 million (RMB1.78 billion) in constructing power Li-ion battery project. After the construction, the company’s total capacity of Li-ion battery will reach 3,500 MWh/a, including 1,600 MWh/a of ternary Li-ion battery and 1,900 MWh/a of lithium ferric phosphate battery


On 15 June, 2016, Guangdong Tonze announced its preliminary plan of purchasing the 100% of shares in Jiangsu Xintai Materials Technology Co., Ltd., a company engaged in the R&D, production and sales of lithium hexafluorophosphate, with a consideration of USD409.78 million (RMB2.7 billion)



 

The great enthusiasm of investment in the Chinese Li-ion battery industry was mainly generated from the sustained and rapid development of the alternative energy vehicle market.


According to the China Association of Automobile Manufacturers, in Jan.-May 2016, the domestic output of alternative energy vehicle grew by 131.4% YoY to 132,000, and the sales volume grew by 134.1% YoY to 126,000.


The sharp increase in sales volume has stimulated demand for power Li-ion batteries. China Industrial Association of Power Sources estimated that the domestic demand for power Li-ion battery will reach 32GWh by the end of 2016.


Kang Yun, Market director of Guoxuan High-Tech, predicted that in 2016 there would likely be structural surplus in the Chinese power Li-ion battery market, which means short supply of high-end products and oversupply of low-end products.


It is worth mentioning that enterprises failing to meet the Vehicle Power Battery Industry Standards of China will probably lose lots of orders, as their product users will not be granted national subsidy.


This article comes from China Li-ion Battery E-News 1606, CCM




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Tag: Li-ion battery


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