While the solar trade war between U.S. and Chinese manufacturers rumbles on, there is a rare opportunity for American manufacturers in a parallel industry to plant their flag in Chinese soil, according to a Chinese market research agency.
Guangzhou-based China Chemicals Market (CCM) says the explosion in demand for high-efficiency lithium-ion batteries to power increasingly popular electric vehicles (EVs) will create huge opportunities in the nation for foreign battery manufacturers and investors.
CCM today (Monday) predicted the EV-related lith-ion battery market in China will increase fivefold, from 4 billion ampere-hours (Ah) per year to 20 billion Ah/year by 2017 as demand for EVs follows a similar upward trajectory.
Struggle to meet demand
With domestic battery manufacturer BYD already having struggled to meet demand as the number of EVs on the road reached 78,499 last year according to figures supplied by the Chinese Association of Automobile Manufacturers and with Chinese manufacturers trailing lith-ion battery makers in the U.S., Japan and South Korea, CCM says there is a huge market opportunity for foreign manufacturers.
With EV numbers having risen 250 per cent from 2013's figures last year, CCM predicts the number will rise to 250,000 this year and investment in lith-ion battery manufacturing in China will rise 400 per cent by 2017.
According to CCM's figures, foreign manufacturers Samsung, LG and Foxconn have each already invested RMB 2 billion ($321 million) during 2014.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.