The elimination rate of Chinese lead-acid battery companies has been rising, and industry changes have become a foregone conclusion

According to the China Battery Industry Investment and Finance and Merger Strategy Study(2012) released recently, two-thirds of the industry's backward production capacity will face elimination in the next three years as the National Environmental Protection authorities step up efforts to rectify the industry and improve industry standards. Lead acid battery manufacturers will be reduced from more than 2,000 to no more than 300, and the concentration of the entire industry is expected to increase.

The "Conditions for Admission to the Industry of Lead storage battery"(draft for comment), prepared by the Ministry of Industry and Information Technology and the Ministry of Environmental Protection, was published on the official website of the Ministry of Industry and Information Technology. The consultation has now been completed. Industry sources told reporters that the possibility of drastic changes in future regulations is very small, a large number of unqualified lead-acid battery companies will be forced to stop production, plus lead-acid batteries face replacement from nickel-metal hydride batteries and lithium-ion batteries, the entire lead-acid battery The growth rate will gradually slow down.

It is reported that the "Regulations"(draft for consultation) gave a strict timetable for the layout of lead-acid battery enterprises, new projects, and suspension of construction projects. For example, it is prohibited to build, upgrade or expand projects for the production of lead batteries with cadmium content above 0.002 %(percentage of battery mass) or arsenic content above 0.1 %; The existing production lines of lead batteries and their parts containing lead with cadmium content above 0.002 % or arsenic content above 0.1 % should stop production by December 31, 2013.

Statistics show that there are currently more than 2,000 lead-acid battery companies in China, of which about 10 have an output value of more than 2 billion yuan, and about 260 have more than 100 million yuan. The concentration of the entire industry is very scattered. Wuhui believes that in the future, the means of industry integration will be implemented in three aspects: production capacity restrictions, technical restrictions, and site selection restrictions. Many small and medium-sized enterprises will gradually withdraw. Integration transformation and technology upgrading will become the main trend of the industry's future development.

The report shows that under the background of environmental protection and governance, the battery industry in China disclosed 28 mergers and acquisitions in the two years from 2010 to 2011. Among them, because Jiangxi and Guangdong are concentrated areas of lithium battery raw material production and battery production, it has become the most important area for battery companies to acquire.

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