In March 2016, the
Chinese government said that the domestic output and sales volume of EV are
supposed to grow by 100% YoY this year. This will definitely drive up the
demand for power Li-ion battery and accelerate the structure adjustment in
China's Li-ion battery industry.
Source: Baidu
On 14 March, 2016,
Miao Wei, the minister of Ministry of Industry and Information Technology of
the People's Republic of China (MIIT), said that China's electric vehicle (EV)
industry is developing rapidly, and this year the output of EV is expected to
be twice of the 379,000 units in 2015.
Growth rate of EV
output is beyond expectation
According to the Chinese government's previous plan, the EV penetration in
China should reach 5 million units by 2020. But it is very likely that the
result will go far beyond this target. Suppose a 100% YoY growth rate in 2016,
and a CAGR of 30% in 2017-2020, then by 2020, the domestic EV penetration will
reach 6.6 million units, much higher than expectation, according to MIIT's
latest estimation.
However, the production of EV has slowed down slightly in Jan.-Feb. 2016,
because the Chinese government was strictly fighting against subsidy cheating
and suspended the application of ternary Li-ion battery in passenger
cars. Given this, to achieve the goal of doubling the output from 2015,
the government may need to introduce some more policies to support the further
development of EV industry.
Strong demand for
power Li-ion battery
The rapid development of EV will also drive up the demand for power Li-ion
battery. And the production of battery won't be dragged by the bottleneck
problem of technology. MIIT promised that it would help solve this problem and
provide solutions to improve battery capacity, security and life span, so as to
guarantee a long driving range.
Prices of lithium
carbonate and LiPF6 will continue to rise
Recently in China, the prices of
lithium carbonate and lithium
hexafluorophosphate (LiPF
6) have been rising continuously as a
result of the strong demand and the tight supply. It is beneficial for those
enterprises engaged in relevant businesses.
Currently, the domestic quotations of industrial grade lithium carbonate and
battery grade lithium carbonate are USD19,882–22,941/t (RMB130,000–150,000/t)
and USD26,000/t (RMB170,000/t), respectively, with the MoM growth rates >5%.
And the quotation of LiPF6 is mainly about USD64,235/t (RMB420,000/t).
In addition, domestic electrolyte producers also significantly raise the
quotations of their products, so as to make up the rising cost of raw
materials.
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Tag: electric vehicle, Li-ion battery