In recent years, the new energy vehicle industry has experienced rapid growth against the backdrop of worsening environmental issues and a growing consensus on energy diversification strategies. As the core component of electric vehicles, power batteries play a crucial role in the development of the new energy automobile sector. With the support of various policy measures and collective efforts, China's power battery industry has made remarkable progress.
The scale of power battery production is expanding quickly. It is expected that the production and sales volume of domestic new energy vehicles will continue to grow rapidly over the next five years, with a compound annual growth rate exceeding 30%. The booming new energy vehicle market has directly driven the fast growth of power batteries.
According to data from the "China Power Battery PACK Industry Development Forecast and Investment Analysis Report" by Prospective Industry Research Institute, the output value of China’s power batteries reached 38 billion yuan in 2015, representing a year-on-year increase of 262%. By 2016, the output value had climbed to 64.5 billion yuan, surpassing traditional digital lithium batteries for the first time and becoming the largest segment of lithium battery consumption.
With new policy incentives and ongoing improvements in lithium battery technology and cost reductions, demand for power batteries is expected to rise sharply in the coming five years. In 2016, China's automotive power battery production was 30.8 GWh, and it is estimated that by 2020, production will reach 141 GWh.
Looking ahead, the cumulative number of new energy vehicles in China is expected to grow significantly over the next five years. This growth is supported by both government policies and increasing consumer demand for eco-friendly transportation solutions.
Currently, the domestic power battery industry is entering a new stage of development, but challenges remain in areas such as industrial structure, manufacturing processes, and technological innovation. Additionally, the industry faces intense pressure from the rapid advancement of international vehicle and power battery technologies. China’s power battery industry must continue to innovate and improve to maintain its leading position in the global new energy vehicle market.
For power battery companies, the issue of overcapacity has become increasingly evident. While the transition to ternary batteries and the pursuit of higher energy density are inevitable trends, the pace of this shift may slow down in 2018. To address these challenges, the following suggestions are proposed:
1. Further refine policies supporting the new energy vehicle industry, upgrade the production chain management of manufacturers, and strengthen sales standards to create a fair competitive environment.
2. Maintain strict oversight of power battery production, monitor industry capacity, promote coordinated development among key enterprises, and encourage mergers and acquisitions among similar companies.
3. Focus on technological innovation, particularly in improving battery energy density, charging speed, safety, reliability, and lifespan, to meet evolving market demands.
Despite challenges such as subsidy reductions and mileage requirements, the high-quality capacity gap remains a key driver for power battery companies to invest and expand. Major brands should develop their own unique strategies to enrich the industry landscape and ensure long-term competitiveness.
Wonke Electric CO.,Ltd. , https://www.wkdq-electric.com