China sees increase in battery energy installed in vehicles during October 2019 12-04-2019

According to a monthly database of power battery by GGII, China produced about 83 thousand alternative fuel vehicles in October 2019, a decrease of 39% compared to one year prior, and an increase of 9% compared to one month prior.


The total energy of batteries installed in alternative fuel vehicles produced in China in October was about 4.07 GWh, a decrease of 31% compared to one year prior and an increase of 3% compared to one month prior, and it is expected to increase continuously in November. In terms of the data from October, there are three notable points. First, the production volume of vehicles and the total battery energy installed in alternative fuel vehicles both decreased by over 20%. In October, 72 thousand passenger alternative fuel vehicles were produced, a decrease of 39% compared to October 2018 while 3.0 GWh of battery energy was equipped in alternative fuel vehicles, a decrease of 26% compared to October 2018.


In October 2019, three thousand alternative fuel buses were produced, a decrease of 58% compared to October 2018, while 0.62 GWh of battery energy was installed in alternative fuel buses, a decrease of 52% compared to October 2018. Eight thousand alternative fuel special purpose motor vehicles were produced with a decrease of 31% compared to one year prior, and the total battery energy installed in special purpose motor vehicles was 0.45 GWh, a decrease of 25% compared to one year prior.


Second, the production volume of special purpose motor vehicles and the battery energy installed in vehicles increased substantially in October, but the production volumes of passenger vehicles and buses, as well as the battery energy of these two types of vehicles did not reach expectations. In October, around eight thousand alternative fuel special purpose motor vehicles were produced, which was an increase of 174% compared to last month, and the total battery energy installed in vehicles was 0.45 GWh, a growth of 137% compared to last month.


Third, the top ten battery companies in China, such as Force God, China Aviation  Lithium Battery Co., Ltd, EVE, Soundon New Energy, and Great Power Energy& Technology Co., Ltd experienced varying levels of increase in total battery energy installed in vehicles.


Chinese lithium batteries gain three advantages compared to Japan and Korea

China, Japan and Korea have now become the three main producers in the global lithium market. However, compared to the lithium batteries produced by Japan and Korea, Chinese lithium batteries own three advantages.


First, China owns the most complete production line of lithium batteries. According to some data, the production volume of lithium battery in Chinese market in 2018 reached 102.00 GWh, an increase 26.71% compared to one year prior. The production volume of Chinese lithium battery accounts for 54.03% of the global production volume, making China the largest producer of lithium batteries in the world.


Second, China owns the biggest lithium battery market in the world. Even though the technology and capacity of lithium batteries in Japan and Korea might gain the upper hand, the lack of demand in the lithium batteries in both countries will lead to difficulty in the development of the lithium battery industries in these countries. However, China is a big market for the developing lithium battery industry. For example, in terms of production and marketing of alternative fuel vehicles, China has ranked first in the world for four years in a row since 2015, accounting for over 50% of annual production and sales volume. In 2018,  the production of global alternative fuel vehicles was about 1.9 million, an increase of 72% compared to one year prior, among which the production volume and sales volume in China were about 1.27 million and 1.26 million, accounting for 50% of the global production volume and sales volume. In other words, if ten alternative fuel vehicles are produced globally, seven of them are sold in China.


Third, China owns half of all global lithium resources.  China is committed to becoming the biggest producer of alternative fuel vehicles in the world.


For these three reasons, China holds a distinct advantage over Japan and Korea and is a global leader in the lithium battery market.


For more information on China’s lithium ion battery market, please check our China Li-Ion Battery E-News.

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