The rapid growth in the EV battery production sector in China will soon see EV batteries tripling in capacity, surpassing the need for the same from the EV makers in the region. This will force China to seek international markets in order to sustain its rapidly expanding EV battery industry. Chinese companies are responsible for the production of NCM and LFP batteries, the two types of batteries frequently used in electric vehicles.
According to the Economic Daily Report, the projections revealed by the top EV battery companies indicate that mainland EV battery producers would boost their output from the 500 GWh that is anticipated to be generated this year to 3000 GWh by the year 2025.
China is at the forefront of battery technology. Therefore, it’s worth noting that the need for producers of batteries to explore markets outside those available locally may arise in order to meet consumer demands.
From UBS projection, mainland China is set to purchase 6 million battery-powered vehicles in 2022, an increase more than twice the 2.99 million purchased in 2018. On the other hand, the Fitch ratings showed that the passenger electric vehicle sector is expected to develop steadily at a rate of 30% every year over the following five years.
From the predictions, however, the optimistic outlook does not speak well for all the battery suppliers in the largest EV market in the world. In 2017, there were 200 or more battery suppliers operating, according to CAAM data, but there are only 48 active suppliers today.
It has taken 10 years of hard work to advance innovation and production techniques for a few Chinese EV battery manufacturers to be able to penetrate the international market. The majority of EV batteries supplied globally come from Contemporary Amperex Technology Limited (CATL), the world’s biggest EV battery producer in east China.
Other Chinese companies, including CALB, Svolt, Gotian and Sunwoda, are among the top 10 producers of EV batteries worldwide. CATL intends to begin construction on a multibillion-dollar factory in Debrecen, Hungary, in September 2023, with a target completion date of 2027. It is the second factory outside of the mainland, which aids CATL in its internationalization strategies. Meanwhile, CALB plans to make Portugal its production center.
According to David Zhang, EV batteries made by China companies abroad will compete to surpass EV assemblies on the mainland as major players on the world stage. In order to do so, they will need to obtain a large number of international orders from auto manufacturers such as Rivian Automotive Inc. (NASDAQ: RIVN) because the local market will not sustain heavy use of their establishments.
About Green Car Stocks
Green Car Stocks (GCS) is a specialized communications platform with a focus on electric vehicles (EV), as well as other emerging market opportunities in the green sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to millions of social media followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled visibility, recognition and brand awareness. GCS is where news, content and information converge.
To receive SMS text alerts from Green Car Stocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.greencarstocks.com
Please see full terms of use and disclaimers on the Green Car Stocks website applicable to all content provided by GCS, wherever published or re-published: https://www.greencarstocks.com/Disclaimer
Green Car Stocks
Los Angeles, CA
www.greencarstocks.com
415.949.5050 Office
Editor@GreenCarStocks.com
Green Car Stocks is part of the InvestorBrandNetwork.
Maruti Suzuki, the Indian subsidiary of Japanese carmaker Suzuki Motor, has cut electric vehicle production…
Norway’s world-leading efforts to transition from petrol and diesel-powered cars to battery electric vehicles (BEVs)…
A Japanese startup has developed a tiny electric car that is rapidly becoming a threat…
Recent innovations in electric vehicle batteries could allow automakers to build electric cars that can…
Electric vehicle adoption is accelerating globally thanks to the growing affordability of electric cars. A…
Analysis published by Wards Intelligence has revealed that hybrid vehicle sales in the U.S. have…