The global battery industry will be dominated by China's market value will reach 240 billion US dollars

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According to Forbes News, China currently has more than 140 battery manufacturers, and it is expected that the global battery industry will occupy a large proportion in the future. In the next 20 years, the market value of the global battery industry will reach 240 billion US dollars. Under the background of the rapid development of the electric vehicle and battery industry, the new energy industry will become an important part of the development of the Chinese market in the future.

With the rapid development of electric vehicles, a number of electric vehicle battery manufacturers have emerged. Everyone is familiar with Matsushita of Japan, Samsung and LG Chemical of South Korea, Tesla Super Factory, and BYD of China. Wall Street research and securities firm Bernstein Automotive analysts predict that in the next 20 years, electric vehicles will account for 40% of global car sales. At this stage, the global electric vehicle production and sales volume has almost reached 100 million, which means that although the global automobile production has not increased, the annual production and sales of the electric vehicle market will reach 40 million.

Assuming the price of the battery is close to $6,000, the market value of the global battery industry will reach $240 billion. In view of the advantages of electric vehicles in dealing with environmental pollution problems, China will be in a leading position in the future in both electric vehicles and batteries.

In order to meet the market demand for electric vehicles in the future, the global electric vehicle battery capacity needs to be greatly improved, which is why Chinese battery manufacturers are expanding rapidly. Tesla and Panasonic announced in 2014 that they would build a super-factory with an annual capacity of 35 GWh, while global battery capacity was less than 50 GWh.

The global battery industry has undergone tremendous changes in the past three years, while China's battery capacity has grown to 125 GWh and is expected to double to 250 GWh by 2020. It is estimated that from 2020 to 2037, the global battery capacity will increase by 10 times, equivalent to the addition of 60 new super factories.

Battery development shifts to the Chinese market

Battery technology was born in Japan, and then it has been further developed in Korea, and now it has grown stronger in the Chinese market. China's battery production has already surpassed Japan in the global market. It is estimated that by 2020, China's share of the global battery market will exceed 70%.

China's electric vehicle market is currently in a period of vigorous development, and the favor of Chinese car companies for domestic products is also on the rise, which also indicates that China will be in a leading position in the field of battery production in the future. According to Roland Berger's E-mobility Index Q2 2017, the use of Chinese-made lithium-ion batteries in Chinese brand electric vehicles has exceeded 90%.

As more and more Chinese companies want to break into the battery industry, the Chinese government is also considering whether to introduce policies to limit the minimum capacity of Chinese battery manufacturers, thereby further enhancing China's leading position in the global battery field. Although not officially announced, the Chinese government will require Chinese battery companies to have an annual production capacity of at least 3 to 5 GWh. In addition, the Chinese government issued a draft at the end of 2016, requiring battery companies to obtain at least 8 gigawatt hours of annual capacity if they want government subsidies. This also indicates that the Chinese government will plan to support enterprises with an annual production capacity of 40 GWh or more in the future.

The leader in the Chinese battery market

Panasonic is still the world's largest supplier of electric vehicle batteries, and Chinese companies are catching up. BYD's production of cars and buses reached 500,000 units in 2016, and the output of pure electric and plug-in hybrid vehicles reached almost 100,000 units. Consistent with BYD's vertically unified management strategy, its battery capacity is also 20 GWh, and it is also the largest battery manufacturer in China. In 2008, a subsidiary of Warren Buffett's Berkshire Hathaway invested $230 million in BYD, which was equivalent to a 10% stake in BYD. BYD's current market valuation is about $16.9 billion.

Ningde Times (CATL) is another leading battery manufacturer in China. It was established in 2011 and is headquartered in Ningde, Fujian. The Ningde era focused on the production of lithium-ion batteries and the research and development of energy storage systems. Currently, production bases have been established in Qinghai, Jiangsu and Guangdong. The battery capacity in the Ningde era is about 7.7 GW and is expected to reach 50 GWh by 2020.

There are also some Chinese battery companies worthy of attention, such as Tianjin Lishen Battery and Hangzhou Wanxiang Group. Lishen currently has production bases in Beijing, Qingdao, Suzhou, Wuhan, Ningbo, Shenzhen and Mianyang. It is estimated that the battery capacity will reach 20 GWh by 2020. Wanxiang is currently the largest privately owned company in China and a leading supplier of auto parts in China. In 1994, Wanxiang America was formally established in Elgin, Illinois, USA. Since then, Wanxiang has acquired more than 20 companies in the United States, including A123 and Fisker Automotive.