CCM; Growth Space for Li-Ion Battery Equipment Market to Reach About USD9 Billion in China in 2020

Press Release (ePRNews.com) - Guangzhou, China - Oct 27, 2016 - Influenced by Li-ion battery expansion, product upgrading and equipment replacement, the market of Li-ion battery equipment exploded in 2014 in China and reached around USD1.1 billion in 2015, up 97% YoY. It is predicted that the growth space for Li-ion battery equipment market will reach about USD9 billion in China in 2020, according to analyst CCM.

In this round of Li-ion battery equipment development, the increasing demand of Li-ion battery was brought by the rapid development of alternative energy vehicles in China. In 2020, the total electricity consumed by alternative energy vehicles will be as 10 times as what it is now.

According to the Development Plan on Energy Saving and Alternative Energy Vehicle Industry (2012-2020), the ownership of alternative energy vehicles will reach 5 million in 2020 and CCM predicts that the sales of alternative energy vehicles will reach over 2 million in 2020.

With the development of technology in producing Li-ion battery, the capacity of Li-ion battery will also keep expanding.

Based on the expansion plans of 10 power Li-ion battery enterprises including BYD Company Limited, China Aviation Lithium Battery Co., Ltd., Hefei Guoxuan High-tech Power Energy Co., Ltd., Do-Fluoride Chemicals Co. and Dynavolt Renewable Energy Technology Co., Ltd., it can be estimated that USD129.8 million will be invested averagely on 1Gwh of power Li-ion battery production equipment, and the investment on equipment with high automation will account for about 50%-60% of the total investment.

Considering that major power Li-ion battery enterprises will be the lead of the capacity expansion and the cost technology is decreasing, it is predicted that about USD59 million will be invested on the newly constructed 1Gwh power Li-ion battery production equipment every year. That’s to say, the new investment in 2016-2020 on production equipment for power Li-ion battery will reach USD692 million, USD1.07 billion, USD1.602 billion, USD1.88 billion and USD1.19 billion.

Demand on consumer electronics Li-ion battery also increases steadily. The shipment of consumer electronics Li-ion battery was 28.4Gwh in China in 2015. If calculated based on the capacity growth of 4%, 1.2Gwh capacity of consumer electronics Li-ion battery will increase every year. And calculated based on 5 years battery life of consumer electronics Li-ion battery, the capacity of 6Gwh will be used to produce new ones.

Compared to power Li-ion battery, consumer electronics Li-ion battery is more standardized in producing, cheaper and with lower technique. If USD44.7 million is invested in production equipment per Gwh, USD322.3 million will be invested on new production equipment of consumer electronics Li-ion battery every year.

The development of energy storage Li-ion battery is mainly driven by the support from the Chinese government, improvement in cost effective and progress on storage technology. It is predicted that the annual growth of energy storage Li-ion battery will be 60%, with the new capacity of 1Gwh, 1.6Gwh, 2.6Gwh, 4.2Gwh and 6.7Gwh in 2016-2020 respectively.

If the investment on per Gwh production equipment is the same as that of power Li-ion battery, the investment on new production equipment for energy storage Li-ion battery will be USD59 million, USD95 million, USD155 million, USD250 million and USD399 million.

That is to say, in 2016-2020, the growth space for Li-ion battery market will reach about USD9 billion in total; specifically, the equipment for power Li-ion battery will be USD6.4 billion, consumer electronics Li-ion battery, USD1.6 billion; energy storage Li-ion battery, USD969 million.  

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Source : CCM

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