SMM NiCoLiMn Summit: NEV subsidy cuts to ease glut in power battery industry-Shanghai Metals Market

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SMM NiCoLiMn Summit: NEV subsidy cuts to ease glut in power battery industry

Industry News 05:16:28PM Apr 28, 2019 Source:SMM

YIBIN, Apr 28 (SMM) – China's subsidy cuts on new energy vehicles (NEVs) are expected to phase out excess capacity in the power lithium-ion battery industry and accelerate the industrial concentration, after capacity growth surpassed that of demand since 2016, said Liu Yanlong, secretary general of China Industrial Association of Power Sources (CIAPS). 

Lower subsidies will grow cash flow pressure on small battery producers, and may drive them to close, Liu told delegates at the SMM Nickel-Cobalt-Lithium-Manganese Summit on Sunday April 28 in Yibin, Sichuan province.

Installed capacity of power lithium-ion batteries from top 20 producers in China accounted for some 91.8% of the overall installed capacity in 2018, standing at 52.2 billion Wh. The share expanded from 87% in 2017, and 83.1% in 2016, Liu said. 

He expressed bullish sentiment on the development of the fuel-efficient 48V power system after China stops NEV subsidies by the end of 2020. Growing demand for hybrid power vehicles, which require higherbattery efficiency, will also expand consumption of 48V power system. 

China's sales revenue of lithium-ion batteries expanded 8.7% from 2017, to 172.7 billion yuan in 2018, with production rising 23.1% on the year to 124.2 billion Wh, he cited data from CIAPS. The growth was mainly driven by NEV power batteries and energy storage batteries,

Exports of lithium-ion batteries stood 12.79% higher year on year in 2017, at 1.71 billion units, according to Liu. 

He also cited CIAPS data that installed capacity of ternary batteries in 2018 accounted for 58.17% of the overall installed capacity of power lithium-ion batteries, and posted 33.1 billion Wh. Around 90.4% of new energy passenger vehicles were equipped with ternary batteries in 2018. 

SMM NiCoLiMn Summit: NEV subsidy cuts to ease glut in power battery industry

Industry News 05:16:28PM Apr 28, 2019 Source:SMM

YIBIN, Apr 28 (SMM) – China's subsidy cuts on new energy vehicles (NEVs) are expected to phase out excess capacity in the power lithium-ion battery industry and accelerate the industrial concentration, after capacity growth surpassed that of demand since 2016, said Liu Yanlong, secretary general of China Industrial Association of Power Sources (CIAPS). 

Lower subsidies will grow cash flow pressure on small battery producers, and may drive them to close, Liu told delegates at the SMM Nickel-Cobalt-Lithium-Manganese Summit on Sunday April 28 in Yibin, Sichuan province.

Installed capacity of power lithium-ion batteries from top 20 producers in China accounted for some 91.8% of the overall installed capacity in 2018, standing at 52.2 billion Wh. The share expanded from 87% in 2017, and 83.1% in 2016, Liu said. 

He expressed bullish sentiment on the development of the fuel-efficient 48V power system after China stops NEV subsidies by the end of 2020. Growing demand for hybrid power vehicles, which require higherbattery efficiency, will also expand consumption of 48V power system. 

China's sales revenue of lithium-ion batteries expanded 8.7% from 2017, to 172.7 billion yuan in 2018, with production rising 23.1% on the year to 124.2 billion Wh, he cited data from CIAPS. The growth was mainly driven by NEV power batteries and energy storage batteries,

Exports of lithium-ion batteries stood 12.79% higher year on year in 2017, at 1.71 billion units, according to Liu. 

He also cited CIAPS data that installed capacity of ternary batteries in 2018 accounted for 58.17% of the overall installed capacity of power lithium-ion batteries, and posted 33.1 billion Wh. Around 90.4% of new energy passenger vehicles were equipped with ternary batteries in 2018.