China Motive Battery Industry Faces Reshuffle Pressure

SHANGHAI, Aug. 9 (SMM) – The motive battery industry in China is facing reshuffle pressure due to domestic large amount of disqualified firms, SMM learns.  

With rapid development of domestic market and low access threshold, there were more than 700 lithium battery firms in China in 2015, including over 150 motive battery firms. Most of the firms are lacking in technical advantage and are small and medium ones.

China’s Ministry of Industry & Information recently announced the fourth batch of motive battery enterprises according with Specifications for Automotive Battery Industry, including China Aviation Lithium Battery, Narada Power and Chaowei Power etc.

Some institutions predict that total capacity of batteries used in new energy vehicles will be 31.5GWh in 2016. Total capacity at the first three batch of 25 domestic battery firms already exceeded 21.7Gwh in 2015, which leaves limited room for new capacities.

And some experts reckon that the number of large motive battery producers will be less than 10 by 2020. 

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