Mexican Media Brands
China’s EV Battery Industry Faces “Brutal” Consolidation
Only a handful of the dozens Chinese companies that make batteries for electric cars are likely to remain after the government ends subsidies for them in 2020, The Nikkei reports.
#hybrid
Share
Only a handful of the dozens Chinese companies that make batteries for electric cars are likely to remain after the government ends subsidies for them in 2020, The Nikkei reports.
China has invested more than $10 billion to develop a domestic battery industry, spawning hundreds of battery makers, according to the newspaper. But the spending began to phase out in 2017, slashing the number of manufacturers by one-third to 90 in a single year.
A research at Mizuho Bank estimates only about 20 domestic producers are likely to survive after the subsidies disappear.
Today, 70% of the world’s largest-volume battery producers are Chinese, The Nikkei points out. But it says companies that survive the industry’s “brutal” consolidation will be those that can supplement their manufacturing know-how with the inhouse ability to innovate their products.
Even big players lack such capability today, the report suggests. It notes that OptimumNano Energy, China’s third-largest battery maker, suspended production in July after government subsidies shrank.
China’s top producer, Contemporary Amperex Technology Ltd., also appears to be struggling, the newspaper adds. It cites CATL Chairman Robin Zeng’s recent question to employees: “Can pigs lifted by a typhoon really fly?”
RELATED CONTENT
-
Things to Know About Cam Grinding
By James Gaffney, Product Engineer, Precision Grinding and Patrick D. Redington, Manager, Precision Grinding Business Unit, Norton Company (Worcester, MA)
-
When Automated Production Turning is the Low-Cost Option
For the right parts, or families of parts, an automated CNC turning cell is simply the least expensive way to produce high-quality parts. Here’s why.
-
Jeeps Modified for Moab
On Easter morning in Moab, Utah, when the population of that exceedingly-hard-to-get-to town in one of the most beautiful settings on Earth has more than doubled, some people won’t be hunting for Easter eggs, but will be trying to get a good look at one of the vehicles six that Jeep has prepared for real-life, fast-feedback from the assembled at the annual Easter Jeep Safari.
