-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueWhat's Your Sweet Spot?
Are you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche. What are their insights?
Moving Forward With Confidence
In this issue, we focus on sales and quoting, workforce training, new IPC leadership in the U.S. and Canada, the effects of tariffs, CFX standards, and much more—all designed to provide perspective as you move through the cloud bank of today's shifting economic market.
Intelligent Test and Inspection
Are you ready to explore the cutting-edge advancements shaping the electronics manufacturing industry? The May 2025 issue of SMT007 Magazine is packed with insights, innovations, and expert perspectives that you won’t want to miss.
- Articles
- Columns
- Links
- Media kit
||| MENU - smt007 Magazine
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.
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
Teramount Raises $50M to Address Growing Demand for AI Infrastructure Optical Connectivity
07/31/2025 | PRNewswireTeramount, the leader in scalable fiber-to-chip interconnect solutions for AI, data centers and advanced computing, today announced it has raised $50 million in financing led by new investor Koch Disruptive Technologies (KDT). Existing investors Grove Ventures and several new strategic investors, including AMD Ventures, Hitachi Ventures, Samsung Catalyst Fund and Wistron, joined the round.
Considering the Future of Impending Copper Tariffs
07/30/2025 | I-Connect007 Editorial TeamThe Global Electronics Association is alerting industry members that a potential 50% tariff on copper could hit U.S. electronics manufacturers where it hurts.
From Attraction to Action: Where Marketing Ends and Sales Begins
07/29/2025 | Brittany Martin, I-Connect007Before a PO hits the system, marketing has already done a lot of heavy lifting. Without strategic marketing, the PO might never arrive. At I-Connect007, we have been fortunate to help many companies achieve sales success through marketing. The key to success? Understanding how marketing leads to sales.
American Made Advocacy: A Growing Presence in Washington in Turbulent Times
07/29/2025 | Shane Whiteside -- Column: American Made AdvocacyLast month, PCBAA held its fourth annual meeting in Washington, D.C. It was our largest gathering to date and included speakers from the House and Senate, the Department of Commerce, and OEMs Lockheed Martin, RTX, and Northrop Grumman. We also spent a day on Capitol Hill educating lawmakers and their staff about the importance of a secure domestic microelectronics supply chain.
TSMC’s Dr. C.C. Wei and Dr. Mark Liu to Receive SIA’s Highest Honor
07/28/2025 | SIAThe Semiconductor Industry Association (SIA) announced Dr. C.C. Wei, TSMC’s Chairman and CEO, and Dr. Mark Liu, TSMC’s Former Chairman and Former President & Co-CEO, have been selected as the 2025 co-recipients of our industry’s highest honor, the Robert N. Noyce Award.