Lithium battery industry have a big explosion?

Electricity storage technology is the most important backing of the new energy industry, and Tesla, which produces affordable electric car Model 3, is now the most watched and most active battery technology company. Tesla and Panasonic's superplants are now planned to be big job creators in the United States and are poised to expand globally, but in fact China is the largest battery manufacturer in the future and will have far more capacity than Tesla's superplants.

Bloomberg reports that new battery plants built by Chinese companies will add up to at least 120 GWh of lithium batteries by the year 2021, enough to supply 1.5 m Models or 1.37 M Toyota Prius plug-in hybrid vehicles a year. After Tesla's super battery factory was completed in 2018, it produced at most 35GWh of lithium batteries each year.

In the past, smart phones, notebook computers, and other personal electronic devices have used lithium batteries, but lithium battery demand has to explode. Not only do electric vehicles need to be used, but power companies will also install giant storage systems to store wind and solar energy(00,091). Tesla produced nearly 84,000 electric vehicles last year and is expected to produce 500,000 in 2018.

The Chinese government attaches great importance to the battery industry and tries to win the market dominance. At present, about 55 % of the world's lithium battery production comes from China, and the United States only accounts for 10 %. By 2021, Bloomberg New Energy Finance expects that China's market share will grow to 65 %. The main driving force is still government policy. The Chinese government regards the lithium battery industry as an important national strategy in 2020.

Globally, global battery capacity will double from the current 103 GWh to 273 GWh in 2021. This is a huge business opportunity and China has long been eyeing it. And three years ago, when Tesla's superplants planned to blow the horn for global battery-manufacturing competition, China went all out.

Tesla plans to announce the location of four other factories by 2017, one of which will be in Shanghai. While Chinese companies rarely reach the scale of Tesla's production, many small and medium-sized companies in China are enough to occupy the market, including dozens of companies such as Ampere Technology and Tianjin Rishen, although China lacks a dominant battery giant.

Earlier this year, the Chinese government announced plans to integrate battery manufacturers and promote the mature development of the industry. At the same time, the Chinese government plans to put 5 million electric vehicles on highways by 2020. The report believes that the Chinese government's ambitious development of electric vehicles is mainly due to the increasing pressure of serious pollution in cities such as Baoding, Xingtai, and Shijiazhuang. The second reason is to create a domestic market for Chinese battery manufacturers before they can hunt the global market.

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