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CTECHI is an expert in battery solutions, specializing in ODM, OEM, and SKD for energy storage, motive power, and consumer batteries.

Analysis of the development of the power battery market

Through government monetary or non-monetary incentive policies and rewards for purchase, use and infrastructure, new energy vehicles have sprung up like mushrooms, and new energy vehicles have driven the development of the entire industry chain, especially batteries. , Electrical and electronic control development. The power battery market is not diminishing, and quality is the 'lifeline of an enterprise.' With the strengthening of incentive mechanisms and promotion efforts in various regions, the output of new energy vehicles has also increased. Industry experts believe that in 2016, the output of new energy vehicles is expected to reach 600,000, and the power battery production capacity will reach 30Gwh. In terms of market performance, the output of new energy vehicles and the capacity of power batteries may be severely disconnected. The capacity of batteries is far behind the production speed of new energy vehicles, and the supply of power batteries is tightening. Industry insiders pointed out that my country’s power battery production capacity is not yet surplus, but is in short supply. The domestic power battery gap is at least about 4Gwh. The produced power batteries will soon be installed on new energy vehicles, which has led to the blind expansion of power batteries. Companies not involved in the lithium battery industry have shifted their investment into the upstream and downstream areas of power batteries, and the quality of the power batteries produced will vary from good to bad. Many batteries with poor production capacity are added together, and truly good batteries are even more in short supply. There are more than 170 supporting manufacturers of power batteries in my country, and most of the manufacturers of automotive power batteries lack a research and development basis and a consistent production process, and their capabilities in production, technology, management, and talents also need to be improved. In terms of production control points, they lag far behind foreign countries, and the quality control is not strong enough. The cycle life, safety, and consistency of the batteries produced are relatively poor, resulting in accidents such as fires and explosions of electric vehicles. The problem of low temperature and exhaustion of the battery is also more prominent. In the cold northern regions, in winter, even if fully charged, the vehicle cannot drive the required mileage; on the other hand, with continuous use, the battery pack shows a rapid decay year by year. The original battery pack runs 100% when it is fully charged in the second year. It may only run 80%, or even 50% in the third year. It is worth noting that the manufacturing cost of power batteries has decreased, but the market price has been increasing. In 2015, the cost of power lithium-ion battery cells in China's new energy vehicle market dropped by about 25% compared with 2014. In 2016, the cost of power batteries is expected to fall on the original basis. Production costs have fallen, but the market price of power batteries has risen. Lower manufacturing costs and higher sales profits will inevitably attract investors to enter this industry. Some power battery manufacturers have production capacity, but the product quality is not too hard, resulting in a serious disconnect between production capacity and quality.

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