TrendForce: Active Development of Electric Vehicles in the US and China Brings Taiwanese Lithium Battery Manufacturers to the World Stage at Battery Japan

published: 2011-02-24 16:50 | editor: | category: Analysis

The U.S. government and the Chinese government both agreed to provide more rewards and subsidies for new energy vehicles in early 2011. For example, the U.S. government agreed that annual growth rate of R&D expense on clean energy to increase by 5% and planned to build 15,000 charging stations in 13 cities. Moreover, battery lease and vehicle lease dual programs were adopted by the Hangzhou Government of China. Therefore, it is expected that the demand of lithium battery will increase resulting in shortage of lithium battery supply within the next three years. At the moment, Battery Japan, one of the biggest lithium battery exhibits in the world, is held in early March 2011 in Tokyo, Japan. EnergyTrend, a research division under TrendForce, believes that this exhibit will become the most important beachhead for car makers to win in terms of including batteries in their supply chains.

According to EnergyTrend’s survey, despite unstable fiscal situation in the U.S., President Barack Obama allocated a USD 2.6 billion budget for the development of clean energy, and there is a 5% increase in annual growth rate of expenditures. In addition, Ecotality has started to build 15,000 charging stations in 13 cities in the U.S.. With the target of reaching one million electric vehicle sales by 2015, the U.S. government is striving to be more energy smart.

China is now the biggest market for the automobile industry, EnergyTrend believes that the Chinese government started to upgrade the domestic software and hardware facilities for new energy cars in order to bring the automobile industry in China to the next level. In terms of hardware facilities, four state-owned enterprises, such as State Grid, CNOOC has began to integrate specifications of the charging system and battery exchange system and the announcement is expected in second quarter of 2011. As for software upgrade, the rewards and concessions are released constantly. Currently, there are 20 cities that received subsidies for bus purchases. In addition, 5 cities including Shanghai also implemented subsidies of 3000RMB/kWh for each passenger car purchase. Furthermore, Hangzhou has provided concessions for leasing new energy cars in early 2011 to reduce cost of ownership. (Chart 1)

Based on EnergyTrend’s analysis, the development of lithium battery, which is the most important component for new energy car, decides the realization and commercialization of new energy cars. Moreover, Battery Japan being one of the biggest lithium battery exhibits in the world comprises showcases of storage cell studies, components, materials, facilities, and storage battery and charging batteries. With the participation of Taiwanese enterprises, such as FEMTC, Sheng Yang, USI, the exhibit can provide system manufacturers with great components at reasonable prices. Also, the exhibit will become the decisive battle for Taiwanese lithium battery manufacturers to go to the international new energy car market.

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