China will soon become the world‘s major electric car
production base, more and more car manufacturers to develop the strategy
of developing electric cars in the Chinese market. On the 15th, BMC
Chinese network reported that Simon Morse, chief executive of Benchmark
Mining Intelligence (a company that collects price data and evaluate the
lithium battery industry supply chain), said China‘s lithium
battery industry is becoming the strongest in the world. He recently
said in an interview with the Chinese media that an ultra-large lithium
battery factory is emerging and most of the new production capacity is
concentrated in China.
Simon Morse said that while
the ultra-large lithium battery plant started with Tesla,
China‘s lithium-battery makers such as BYD, New Energy (ATL)
and 70% of Lishen‘s new plant are located in China.
Lithium battery manufacturing base
He
also said we also saw manufacturers in Japan and South Korea also
building giant factories in China. China lithium battery production
capacity in 2020 will account for 62% of the world.
According
to the British benchmark mining intelligence said that
China‘s lithium battery plant production is currently 16.4
GWh, by 2020 the total output will reach 107.5 GWh.
Demand
for electric vehicles, the government stepped up the energy-saving lamp
requirements and other factors have contributed to the development of
the lithium battery market.
"The global market is
experiencing rapid changes, with smaller batteries being converted to
larger electric vehicles." Morse said that "the increase of electric
bikes in China is also an important factor. The replacement of petrol
engine vehicles by electric vehicles will be a key change."
He
added that the electric car market has really enjoyed a significant
period of development when an electric car capable of driving more than
230 miles (370 km) can be recharged at a reasonable price. He predicts
these will be achieved in three years.
Morse said
investing in lithium batteries and working with major technology
companies to build a new electric vehicle will be important to China and
will keep China in the lead.
"China may become the
production base of the world‘s major Chinese electric
vehicles and Western brands of electric vehicles, and China will firmly
grasp this opportunity in the context of cooperation."
Why electric cars
Ford
Motor Company just announced the development of electric vehicle
strategy in China. Ford Motor Co. plans to move 70% of its
electric-powered vehicles to China by 2025.
Reported
that Tesla in 2016 $ 70000000000 of sales of 1 billion dollars in
China, the company president said that in a few years China will account
for the company‘s global sales of the largest share.
The
president of Volkswagen recently said that the design of their new I.D.
electric car was designed with the Chinese market in mind. The company
plans to secure an annual sales of 1 million electric cars in China by
2025.
at the same time. Chinese electric car maker
BYD has an impact in the U.S. market when they sell electric buses and
electric trucks to customers. BYD is backed by U.S. investors Buffett
and Berkshire Hathaway.
Automotive industry
analysts believe that the development of China‘s electric car
market, mainly for two reasons. One is the expansion of the surplus
population in the Chinese population who want to drive luxury electric
vehicles such as Tesla because they are more durable, powerful and
good-looking.
Another reason is the population
distribution. More and more Chinese population have entered super-large
cities, enjoying better education and training there and farmers
entering employment in mega-cities. These people need the means of
transportation outside the railroad and the bus, while the small
electric cars are better suited for their use in crowded cities.