China's battery capacity continues to soar five years later, enough to use 1.5 million Model S

The world's largest battery plant in the Nevada desert is now under close scrutiny, according to Bloomberg, but few have noticed that Chinese rivals are catching up. Battery factories in Chinese companies are accelerating their own capacity, and observers predict that batteries produced in China will meet the demand for 1.5 million ModelS electric vehicles by 2021.

China's battery capacity has soared to 1.5 million Models in five years

China's lithium battery capacity is growing rapidly and will exceed 120 gigawatts per hour by 2021

According to a report released by Pengbozhi this week, many Chinese companies have plans to increase the capacity of lithium batteries in the hope that by 2021 the factory will have annual capacity of more than 120 gigawatts per hour, which is enough to produce 1.5 million Tesla Models electric vehicles per year. Or 1.37 million Toyota Prius plug-in hybrids provide batteries.

In contrast, the capacity of Tesla's Super factory, Gigafactory, was as high as 35 gigawatts per hour after completion in 2018.

Lithium batteries have long been used in smartphones, laptops and other personal electronics. Tesla, which produced nearly 84000 electric vehicles in 2016, has announced plans to increase its annual capacity to 500,000 vehicles by 2018. With the popularity of electric vehicles, the demand for lithium batteries worldwide will increase significantly in the next five years.

Seize the opportunity.

In the broader context of Tesla's efforts to build the world's largest and most dynamic battery plant, Beijing has launched a plan to further boost market share in lithium batteries and consolidate China's dominance over lithium batteries.

China's battery capacity has soared to 1.5 million Models in five years

The global share of Chinese lithium battery production will rise rapidly to 65 % by 2021

About 55 % of the world's lithium battery capacity is in China, compared with 10 % in the US, according to Bloomberg New Energy Finance. China's lithium battery capacity will rise to 65 % by 2021.

"It has to do with China's industrial policy," says Maikelache, analyst at Bloomberg New Energy Finance. The Chinese government regards the lithium battery industry as an important industry in the 1920s and beyond. "

China's battery capacity has soared to 1.5 million Models in five years

Electric cars drive demand for lithium batteries(blue: electric car red: personal electronics black: consumer and grid storage)

Global lithium battery capacity is expected to double from the current 103 gigawatts per hour to 273 gigawatts by 2021. There are huge opportunities, and China doesn't want to miss them. "Three years ago, Tesla announced the construction of a superplant, setting off a global battery production race," said Muersi, managing director of Benchmark Minerals Intelligence. And China is working on that. "

Tesla's advantage.

However, Tesla is also stepping up its capacity and plans to announce the location of four new factories by the end of 2017, one of which will be located in Shanghai, China.

Tesla still has a clear advantage over Chinese battery makers because there are few factories in China that can compare with Tesla's superplants. Moreover, China lacks the dominant big companies in lithium-ion batteries. Dozens of battery companies, including New Energy Technology Co., Ltd. and Tianjin lishen battery, are smaller in size.

China's battery capacity has soared to 1.5 million Models in five years

Tesla CEO Yilong·masike

Earlier this year, Beijing announced plans to merge and restructure domestic battery makers, pushing for the industry to mature. Beijing plans to have 5 million electric cars on the road by 2020.

China wants to become a global leader in clean cars because of the pressure and traffic congestion on the city's smog. Moreover, China hopes to create a huge domestic market for Chinese battery makers. 鈥淭he Chinese government wants to build a domestic market and a base big enough. On this basis, they can expand the battery business and sell battery products around the world. "

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