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In 2015 Lithium Price Tripled, Lithium Battery is In a Draught of the Industry

According to “Report on Market Demand Forecast and Investment Strategy Analysis of China Power Lithium Battery Industry” of the Qianzhan Industry Institute, currently lithium demand is mainly concentrated in mobile battery and glass, lubricating oil markets, whose percentage is up to 85%, market share of electric vehicle and ESS energy backup system is 15%. Nevertheless,, it is estimated that by 2025 the lithium demand of electric vehicle and ESS will rise to 60%. As the demand steadily grows, in 2015 alone lithium price more than tripled, price varies according to demand and supply situation, and will rise considerably on the basis of the past USD 7000 per tonne level.

During the “Twelfth Five Year Plan” period, China’s lithium-ion power battery specific energy reached 160 Wh/kg above, cost is lower than 3 yuan/Wh. According to “Made in China 2025”, by 2020, China’s lithium-ion battery specific energy will reach 300 Wh/kg.

As an extensively used power battery today in new energy vehicles, lithium battery technology to a great extent influences the development of new energy vehicle industry. In June this year, BYD teamed up with Qinghai Salt Lake Industry and Shenzhen Hongdatong Industry to set up joint venture, aiming to jointly develop Salt Lake lithium resources. BYD holds 48% equity, and enjoys priority in purchase of lithium carbonate, it also plans to set up annual 10GWh battery factory in the local area, so as to improve cost competitiveness through integration of lithium supply and battery production.

Today, lithium battery industry is indeed in a draught, but this draught cannot be pursued blindly, the requirement for innovation and technology ingredients are very high, it is not the so-called pig-can-fly draught. In the future, improving smart manufacture standard of China’s power battery and perfecting verification test methods and standard system, represent key tasks for development of China’s power lithium battery industry.