China, Japan, and South Korea accounted for about 93% of global lithium-ion battery production in 2013. China's lithium-ion battery industry is growing faster than the global average, at 10-13% higher, and production capacity is increasingly relocating to China. Global demand for lithium-ion batteries is expected to increase from 67.07 million kWh in 2014 to 131.20 million kWh in 2016, driving the industry's revenues over $35 billion globally by 2016. The growth is driven by increasing demand from China's alternative energy vehicle industry, which is supported by favorable government policies.

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3. China and the global Li-ion battery market
Rise of the alternative energy vehicle
market and China’s L-ion battery market
Li-ion battery materials industry

4. A three-horse race
between China,
Japan and South Korea

5. In 2013, China, Japan and South Korea
accounted for about 93% of total global
output of Li-ion batteries.
From 2003–2013, global Li-ion battery
industry revenues increased from
USD5.31 billion to USD27.55 billion, with
a CAGR of 17.89%.

6. Proportion of global
Li-ion battery
industry output by
country, 2013
South
Korea, 40%
Japan, 33%
China, 20%
Others, 7%
Source: CCM

7. Global demand for Li-ion batteries will increase
from 67.07 million kWh in 2014 to 131.20
million kWh in 2016, with a CAGR of 39.85%.
By 2016, global revenues of Li-ion battery
industry will exceed USD35 billion.

8. Japan’s market share is decreasing;
South Korea has surpassed Japan to become the
largest Li-ion battery manufacturer in the world;
China is quickening the development of its Li-ion
battery industry, claiming an ever greater market
share, and is expected to close the gap with Japan
over the next few years.

9. Stronger upturn

10. The growth rate of China’s Li-ion battery industry is 10–13 percentage points
higher than the global average of 25%.
Li-ion battery production capacity is increasingly relocating to China.
Chinese brands are grabbing a bigger and bigger share of the global market.

11. Market share of global Li-ion battery industry by brand, 2013
Samsung SDI,
23.60%
Sanyo (including
Panasonic), 22.60%
LG Chemicals,
16.40%
Maxell, 3.70%
BAK, 4.00%
ATL, 4.20%
Tianjin Lishen, 6.90%
Sony, 8.90%
BYD, 5.00%
E-One, 0.57%
Others, 4.13%

12. Promising alternative
energy vehicle industry

13. Each alternative energy vehicle
requires 50 kg of cathode materials,
50 kg of electrolyte and 40 kg of
anode materials

14. Global revenues of Li-ion battery industry, 2010–2020E
50
45
40
35
30
25
20
15
10
5
0
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
billion USD
Other Li-ion batteries Power Li-ion battery
Source: CCM

15. Output of alternative energy vehicle industry
in China, Jan.–Sept. 2014
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Jan Feb Mar Apr May Jun Jul Aug Sept
Unit
Source: China Association of Automobile Manufacturers & CCM

16. The quick development of
China’s alternative energy
vehicle industry cannot
go forward without
government support.

17. Favorable policies of China’s alternative energy vehicle industry
Time Policy Remarks
Jul-14
The Proposal on Purchasing Alternative Energy
Automobiles for Governments and Public
Institutions
/
The Guidance concerning Accelerating
Expansion and Application of Alternative
Energy Automobiles
Three aspects have aroused attention in the
industry: Not draw back the outside
alternative energy automobiles' entering into
the local markets; list charging infrastructure
in urban planning and give related
governmental supports; ease the access to
vehicle production and encourage the inflow
of social capital.
Aug-14
The Announcement on Tax Exemption for
Purchasing Alternative Energy Automobiles
Go into effect from 1 Sept., 2014
The First Catalog of Alternative Energy Vehicle
Types Free from Vehicle Purchase Tax
25 vehicle enterprises are included, totaling
113 types of vehicles
Source: National Development and Reform Commission & CCM

18. Favorable policies of China’s alternative energy vehicle industry
Time Policy Remarks
Oct-14
In order to implement the Guidance issued
by the State Council in late July 2014, all local
governments introduced corresponding
measures to advance the expansion and
application of alternative energy
automobiles based on their local situations
e.g. Fujian Province's the Notice of
Eight Measures to Propel Expansion
and Application of Alternative Energy
Automobiles
The Second Catalog of Alternative Energy
Vehicle Types Free from Vehicle Purchase Tax
30 vehicle enterprises are included,
totaling 118 types of vehicles
Source: National Development and Reform Commission & CCM

19. CCM predicts that during the Thirteenth Five-year Plan (2016–
2020), China will issue more supportive policies.
This indicates that China is determined to develop the
alternative energy vehicle industry.

20. Though China’s Li-ion battery industry is driven by strong
demand from downstream markets, CCM believes that the
industry still lags behind Japan in many aspects, especially
regarding high-end applications such as power Li-ion batteries.

21. Increasing input in
key materials

22. Electrolyte
Cathode materials
Separators

23. China boasts cost advantages in
manufacture of Li-ion battery materials
Land
Labor
Cluster of upstream and downstream industries:
abundant mineral resources and raw materials,
and large number of manufacturers in both consumer
electronics and alternative energy vehicles industries

24. Proportions of
power Li-ion battery
by cost in China
Cathode
material,
30%
Separator,
Anode
material,
10%
Electrolyte, 25%
17%
Others,
18%
Source:CCM

25. CCM:
As China invests more in key materials, technological obstacles will be overcome.
Based on cost advantages, the prices of related products will decline to become
the cheapest on the global market.
Electrolyte: LiPF6, core raw material, sees fine industrialization.
Cathode & anode materials: Related mineral resources, like lithium,
manganese, ferrum, phosphate and graphite
are abundant.
Separator: The domestication is quickened.

26. Electrolyte
China continues its fast increase in market
share, thanks to cost advantages.
In 2013, global market capacity was about
60,000 tonnes. Of this, the sales volume
of Chinese enterprises reached about
31,000 tonnes. China took the first time to
occupy over 50% of market shares.

27. Market shares of global Li-ion battery
electrolyte industry, 2013
China, 51.70%
South Korea,
20.41%
Japan, 22.90%
Others, 4.99%

28. Main producers of electrolyte in China, 2014
Company Production capacity, t/a
Zhangjiagang Guotai Huarong Chemical New Material Co., Ltd. 10,000
Dongguan Shanshan Battery Material Co., Ltd. 9,000
Shenzhen Capchem Technology Co., Ltd. 8,600
Tianjin Jinniu Power Sources Material Co., Ltd. 8,000
Guangzhou Tinci Materials Technology Co., Ltd. 7,000
Source: CCM

29. Lithium hexafluorophosphate (LiPF6 )
The global production capacity of LiPF6
reaches 12,000 t/a.
China realizes commercial production and
breaks Japan’s monopoly.
Now LiPF6 prices are declining due to
overcapacity.
Some small-scale Japanese factories have
stopped production.

30. Ex-works price of LiPF6 in China, 2009–2014
60,000
50,000
40,000
30,000
20,000
10,000
0
2009 2010 2011 2012 2013 2014
USD/t
Source: CCM

31. As the technology matures,
China quickens LiPF6 industrialization.
In the light of cost advantages from
fluorochemical raw materials, some
Chinese LiPF6. enterprises make
noticeable profits.
China is expected to become the
world’s dominant supply base for
LiPF6.

32. Main producers of lithium hexafluorophosphate in China, 2014
Company
Production
capacity, t/a
Future plan
Do-Fluoride Co., Ltd. 2,200 /
Guangzhou Tinci Materials Technology Co., Ltd. 2,000
expand the production
capacity to 4,000t/a
Tianjin Jinniu Power Sources Material Co., Ltd. 700
expand the production
capacity to 2,000t/a
Jiangsu Jiujiujiu Technology Co., Ltd. 700
expand the production
capacity to 2,000t/a
Sichuan Huangming Lithium Energy New Material Co., Ltd. 100
expand the production
capacity to 3,000t/a
Source: CCM

33. Cathode materials
In 2013, China’s total output of cathode
materials amounted to 48,000 tonnes.
Regarding power Li-ion battery, ternary
materials such as lithium nickel cobalt
manganate (NCM) are expected to
dominate the field.

34. Cathode materials
Global production capacity is
increasingly relocating to China.
In 2013, China produced 49.83% of
the total market share of cathode
materials.

35. Main producers of cathode materials in China, 2014
Company Production capacity, t/a
Hunan Ruixiang New Material Co., Ltd. 12,000
Pulead Technology Industry Co., Ltd. 10,000
Beijing Easpring Material Technology Co., Ltd. 10,000
Hunan Shanshan New Material Co., Ltd. 9,000
Tianjin B&M Science and Technology Joint-Stock Co., Ltd. 8,000
Source: CCM

36. Separators
In 2013, China’s total output of
separators reached 220 million m2.
It is expected that China will rely
on a high performance to price
ratio to further move up the
international supply chain.

37. Market shares of
global separator
industry, 2013
Japan, 50%
The US, 16%
South Korea,
16%
China, 12%
Others, 6%

38. Main separator producers in China, 2014
Company
Production capacity,
million m2/a
Foshan Jinhui Hi-Tech Optoelectronic Material Co., Ltd. 100
Xinxiang Zhongke Science and Technology Co., Ltd. 100
Shenzhen Senior Technology Material Co., Ltd. 80
Cangzhou Mingzhu Plastic Co., Ltd. 75
Henan Yiteng New Energy Technology Co., Ltd. 60

39. Stimulated by active downstream
markets, more and more Chinese Li-ion
battery enterprises will devote
themselves to developing key materials.
This will facilitate China to distinguish
itself by its cost competitiveness.

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