China Li-ion Battery E-News

In 2014, stimulated by several favorable policies, the alternative energy vehicle industry in China has quickened the pace to open the market.

CCM discovered that these policies are more likely to benefit the market openness and consumer subsidies, but the critical problem concerning the insufficient core technologies held by Chinese enterprises seems to be ignored. Both the policies and related enterprises in China lag behind regarding the support, mastering and industrialization of the core technology of alternative energy vehicles. For instance, although power Li-ion battery is of much concern in China, its development may not be promising.

Actually, the central government has caught that the sustainable and healthy development of alternative energy vehicle industry can not only depend on supporting the automobile enterprises. For instance, early in Sept. 2014, Ma Kai, vice premier of the State Council emphasized during the research on the R&D and production of domestic power Li-ion battery industry that more support should be given to the core parts of alternative energy vehicle, especially in finance, tax and industry, and that related policies and laws and regulations should be issued quickly. Therefore, in Nov. 2014, related national departments stated that the government was forwarding the subsidy policy for power Li-ion battery. If the policy is issued officially, it will facilitate the development of domestic Li-ion battery manufacturers and even the development of alternative energy vehicle industry.

Though a series of subsidy policies for alternative energy vehicle have been issued, the prices of part of the alternative energy vehicles are still higher than that of the same level traditional oil-fueled vehicles. This is mainly because the price of power Li-ion battery maintains a high level. Some industry experts disclosed that except the leading manufacturers, many power Li-ion battery manufacturers still present immature core technology. This results in relatively high production costs. Additionally, other key factors such as unstable orders also lead to the high price.

It is predicted that the subsidy policy for power Li-ion battery will target at these key factors and lower the price of power Li-ion battery directly and effectively, so as to raise the performance-price ratio and strengthen the competitiveness. This will help manufacturers to gain more orders and continue to raise the input to progress the maturing of the core technology. Finally, the development of power Li-ion battery industry will further the price reduction of alternative energy vehicle. Then more consumers will be attracted and the market scale of alternative energy vehicle will be expanded continuously.  

The RMB/USD exchange rate in the issue is USD1.00=RMB6.1525 on 3 Nov., 2014, sourced from the People's Bank of China. Meanwhile, all the prices in this issue include VAT.

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