China Tightens Regulation on EV Battery Industry, Raising Minimum Production Capacity 39-Fold
Yicai Global
/SOURCE : Yicai
China Tightens Regulation on EV Battery Industry, Raising Minimum Production Capacity 39-Fold

(Yicai Global) Nov. 23 -- The minimum requirement on new-energy vehicle battery production capacity will be significantly raised and there will be a 39-fold increase in production capacity for lithium-ion battery producers, the government advised.

The production capacity of lithium-ion battery producers should be no less than eight Gigawatt hours a year, which is substantially higher than the previous 0.2 gigawatt hours.

"Only Bring Your Dream and Contemporary Amperex Technology Ltd. fulfilled the eight GWh requirement this year," said an industry expert.

"Our production capacity is approximately six GWh this year. It can be increased to eight GWh and we rank as the third in China by production capacity." Fang Jianhua, general manager at Hefei Guoxuan High-Tech Power Energy Co. said.

From a short-term perspective, the lithium power battery market will grow at an accelerating pace and the strongest players will stand out from the competition.

Once the market entry criteria have been raised, the severe oversupply in the power battery industry and poor shipment figures among producers will be reversed.

It will help the industry achieve economies of scale, reduce production cost and narrow the price gap between new-energy vehicles and traditional cars.

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