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Construction of 22 traction battery factories began in China this year
The speed of emergence in the PRC of new enterprises for the production of batteries for electric vehicles is impressive: one on average appears every week. Since the beginning of this year, the construction of 22 new enterprises of this profile has started, for these needs investors have spent $ 24 billion.
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As Business Korea notes with reference to the Chinese media, the most active manufacturer in the context of business expansion is CATL, which already controls 31.7% of the global market in the first two months of this year. Of the twenty-two new factories built in the past quarter, seven were built by CATL, which accounted for half of the capital expenditures — about $ 12 billion. Chinese authorities are actively promoting the development of the national industry by supporting the construction of new battery factories.
CATL and Svolt are also building factories in Europe, and BYD recently launched an initiative to increase battery exports from China. When all 22 enterprises built in the last quarter in the PRC reach their design capacity, they will be able to provide an annual production of almost 6 million electric vehicles. CATL itself has tripled its battery output over the year, at the same time strengthening its market position from 17.3% to 31.7%.
The United States, with its growing demand for electric vehicles, has only four battery factories. The situation is aggravated by the fact that the Korean companies LG Energy Solution and SK Innovation got involved in a patent dispute, as a result of which the latter may lose access to the American market altogether. Experts note that it is more expedient to produce traction batteries in the immediate vicinity of car assembly plants, since their long-term transportation is associated with certain risks. There are now more than ninety battery factories in China, and they can clearly serve the needs of the local car market better than those in the United States.