Global PCB Connections: Rigid-flex and Flexible PCBs—The Backbone of Modern Electronics
Flexible Thinking: The Key to a Successful Flex Circuit Design Transfer
Happy’s Tech Talk #29: Bend-to-Install Semi-flex FR-4
Demand for xEV Batteries Grows Steadily, but Chinese xEV Battery Market Faces Reshuffle as Subsidies Phase Out
January 24, 2019 | TrendForceEstimated reading time: 2 minutes
According to the latest research by EnergyTrend, a division of TrendForce, the market of new energy vehicle will continue to grow steadily, driving the demand for xEV batteries, despite the slowdown in global automotive market since 2018. The global demand for lithium-ion batteries used in new energy passenger cars is estimated to reach 155GWh in 2019, a growth of 63% from 95GWh in 2018.
According to Duff Lu, senior research manager of EnergyTrend, China has become the world's fastest-growing market for new energy vehicles driven by the government’s subsidies and supporting policies. After a rapid growth in 1H18, the shipments of new energy cars in China slowed down in 2H18, moderating the demand in the xEV battery industry as well. However, with increasing penetration of new energy vehicles, the demand for lithium-ion batteries used in new energy passenger cars in China will grow to 54GWh in 2019, a growth of nearly 80% from 30GWh in 2018.
In terms of supply, the production capacity of xEV battery in China has surpassed 134GWh by the end of 2018, and has a chance to reach 164GWh in 2019. Amid the oversupply and phasing out of subsidies from the Chinese government, the industry has been faced with a reshuffle since the second half of 2018. Major manufacturers have grown stronger at the expense of the demise of smaller companies. Leading players like Contemporary Amperex Technology (CATL) and BYD continue to expand, while less competitive ones who rely too much on regional markets, such as OptimumNano Energy, may have to exit the market during the market reshuffle.
EnergyTrend expects that, with new capacity entering operation in 2019, the xEV battery industry will become more concentrated. The top five battery manufacturers would continue to grow and become the major suppliers. Subsidies from the Chinese government will be phased out by 2020, but before that, the industry will still depend on the subsidies to cover their R&D costs for advanced battery technologies. Manufacturers need to continue the development of high energy density solutions, building up competitiveness, before the electric vehicle market enters the maturity stage.
About TrendForce
TrendForce is a global provider of the latest development, insight, and analysis of the technology industry. Having served businesses for over a decade, the company has built up a strong membership base of 435,000 subscribers. TrendForce has established a reputation as an organization that offers insightful and accurate analysis of the technology industry through five major research divisions: DRAMeXchange, WitsView, LEDinside, EnergyTrend and Topology. Founded in Taipei, Taiwan in 2000, TrendForce has extended its presence in China since 2004 with offices in Shenzhen and Beijing.
Share on:
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
10/31/2025 | Nolan Johnson, I-Connect007Last week, the IMPACT conference took place in Taipei, bringing together advanced packaging experts from around the globe to share their knowledge. We’ll be bringing you post-conference coverage over the next few weeks, so look for that in our newsletters, and in the Advanced Electronic Packaging Digest. Other news seemed to have the U.S. at the center of the global discussions. My picks start in Phoenix, where TSMC, NVIDIA, and Amkor are all scrambling to establish new capabilities. There’s nothing like a strong demand signal to cause build-out, and AI chips are doing exactly that.
I-Connect007 Welcomes New Columnist: Leo Lambert, EPTAC
10/30/2025 | I-Connect007I-Connect007 is excited to announce a column by Leo Lambert, an industry veteran with 40 years of experience, an award winner, and technical director at EPTAC. This column, Learning With Leo, will explore the evolution and related challenges of electronics product assembly, especially as it relates to training.
Better Sustainability Policies for Electronics
10/29/2025 | Diana Radovan, Global Electronics AssociationI joined the Global Electronics Association in August 2025 as the director of sustainability policy. Since then, much has happened in terms of geopolitics and in the development and re-envisioning of sustainability policies in the industry. While the European Commission has released several legislative packages to simplify sustainability requirements (“omnibus”), these developments haven’t yet settled and are not in effect. Given the many recent and ongoing public consultations, with often conflicting input from a broad range of stakeholders, final negotiations remain rather polarized among policymakers.
SMTAI 2025 Review: Reflecting on a Pragmatic and Forward-looking Industry
10/27/2025 | Marcy LaRont, I-Connect007Leaving the show floor on the final afternoon of SMTA International last week in Rosemont, Illinois, it was clear that the show remains a grounded, technically driven event that delivers a solid program, good networking, and an easy space to commune with industry colleagues and meet with customers.
Come Together: Tom Marktscheffel Used Data to Build CFX and a Global Factory Standard
10/27/2025 | Sandy Gentry, Community MagazineWhen Tom Marktscheffel, director of product management software solutions at ASMPT, looks back on his nearly three decades in electronics manufacturing, one word stands out: data. “Data is the new gold,” he says. Without it, automation, artificial intelligence, and the factory of the future are impossible. With it, the industry can move from manual, error-prone processes to smart, connected systems that make real-time decisions.