China has the world's largest EV market. According to DIGITIMES Research, the country saw the sale of 3.3 million EVs in 2021, a 168% growth from 2020. It supports a huge domestic battery industry consisting of material suppliers, battery makers and many other enterprises, enabling the development of recycling.
A DIGITIMES Asia recent report, "2022 EV battery value-chain outlook in Asia," provides a comprehensive overview of the China EV battery industry. Below is the summary of the report.
China manufactures and uses the most EV batteries in the world. According to SNE Research, a South Korean research firm, the global EV battery usage in2021 is 296.8GWh, of which China takes up more than 50%.
Moreover, six out of the top 10 battery makers are based in China or owned by a Chinese company, including the world-leading CATL.
In recent years, LFP battery adoption has been growing because more automakers and battery companies favor LFP over ternary lithium batteries. Data shows that the production, sales and installation of LFP batteries might surpass or reach the same level as ternary batteries.
Note: Numbers are in GWh Source: China Automotive Battery Innovation Alliance, complied by DIGITIMES, March 2022
Government subsidy and policy have been affecting and will continue to affect the EV industry in China, including battery manufacturing. Nearly every material supplier and battery maker are expanding in response to the growing need. Material suppliers such as Huayou Cobalt and Beijing Easpring Material Technology both have nickel mining projects in Indonesia to secure the raw materials.
As for battery design, more companies feature safety when launching their products. GAC Aion and BYD showcased battery technologies with enhanced heat-resisting ability in recent years. Due to multiple fire accidents resulting from batteries, manufacturers need to offset the concern with advanced solutions.
On the other hand, salvaging raw materials from spent batteries is important for China to ensure supply and become less dependent on other nations. The country is still forming its EV battery recycling ecosystem while having prominent recyclers like GEM and Brunp Recycling. Government policies are expected to lead the development of the business.
China quickly dominated EV battery manufacturing with existing resources and infrastructure. With growing production capacity and presence overseas, the country will remain a major player in the market.
To get the full content of this article, you may download the report via "2022 EV battery value-chain outlook in Asia."
Editor note: DIGITIMES Asia just released a series of industry reports, focusing on the "2022 EV battery value-chain outlook in Asia." The reports are divided into 3 parts – Overview of East and Northeast Asia EV battery supply chains, Southeast Asia, India EV battery and material supply chains, and EV battery tech trends and promising startups. These member-exclusive reports are now available for EV Weekly Subscribers.
