China will soon become the world’s major production base of electric vehicles, more and more car manufacturers have made strategy of developing electric vehicles in the Chinese market.
“China’s lithium battery industry is becoming the world’s strongest,” said Simon Morse, general manager of the UK’s benchmark mining intelligence (a company that collects price data and evaluates the supply chain for the lithium battery industry). He recently said in an interview with the Chinese media that there are very large lithium battery factories, most of the new lithium battery production capacity concentrated in China.
Simon Moore said that although the ultra-large lithium battery factory began in Tesla, but China’s lithium battery production giants such as BYD, new energy (ATL) and Lishen’s 70% new factories are located in China.
He also said that we also see that Japanese and Korean battery manufacturers are also building super-giant factories in China. China’s lithium battery production in 2020 will reaches to 62% of the world.
According to the British benchmark mining information, China’s lithium battery factory production capacity is currently 16.4 GWh, by 2020 the total output will reach 107.5 GWh.
The increasement in demand for electric vehicles, the Government strengthen the requirements of energy-saving lamps and other factors such as hoverboard and other smart electric scooter consumes more and more battery,have contributed to the development of lithium battery market.
“The global market is experiencing rapid changes,from smaller battery vehicles moving towards large electric cars.” “The increase in electric bicycles in China is also an important factor, and gasoline engine cars are being replaced by electric cars,” Morse said.
He also said if after full charge a car can run 230 miles (about 370 km), and the price is reasonable, then the electric car market really ushered in a great development period. He predicted that three years later this period will come.
Moore said investing in lithium batteries and working with major technology companies to build new types of electric vehicles is very important to China and will keep China in a leading position.
“China may become the world ‘s leading Chinese electric car and Western brands of electric car production base, in the cooperation basis, China will firmly seize this opportunity.”
Why electric car
Ford has just announced the development of electric vehicle strategy in China. Ford Motor plans to move 70 percent of electric vehicles to China by 2025.
Reported that Tesla 7 billion USD turnover in 2016, while 1 billion USD achieve in China, the company president said several years later China will account for the company’s largest global sales share.
Volkswagen’s president recently said that their new I.D. electric car take into account the Chinese market during design. The company plans to sell more than 1 million electric cars yearly before 2025.
At the same time. Chinese electric car maker BYD has an impact in the US market, they are selling electric buses and electric trucks to customers. BYD is supported by US investors Buffett and Berkshire Hathaway.
Automotive industry analysts believe that the reasons for the development of China’s electric car market mainly for two main factors. One is the expansion of the surplus population in the Chinese population, and they want to drive luxury cars such as Tesla, because these car can be more durable, powerful, and eyesight attracting.Another is the population distribution factor. More and more Chinese population flood into large cities, enjoy the better education and training there, farmers flood into large cities to get employment. These people need means of transport besides railways and buses , and small electric cars such as electric bicycles and balance scooters are more suitable for them to use in crowded cities.