According to a recent one report, The CCID Research Institute of the Ministry of Industry and Information Technology recently published a White Paper on the Lithium Battery Industry Development Index in China for 2021. This White Paper shows that the development of the lithium battery industry in China is experiencing tremendous growth. The index reached 307.6 in the fourth quarter of 2021. If we compare it with 2017, this is three times higher. The data clearly show that since the fourth quarter of 2017, the overall development index of the lithium battery industry in China shows a steady upward trend. In the fourth quarter of 2021, the development index of the lithium battery industry in China reached 307.6. In addition, the scale of the Chinese industry will increase significantly in 2021. The market for lithium batteries will reach 324 GWh, four times more than in 2017.
From a global perspective, China has become the world’s largest consumer market for lithium batteries for five consecutive years. As early as 2021, the global market for lithium-ion batteries will reach 545 GWh. Taking the figures from the end of 2021, China has seen a significant increase of nearly 70 percent in battery production. The country ranks sixth among the top 10 lithium battery manufacturers in the world. It’s no surprise to see this, after all, many components come from China and there is a huge demand for lithium batteries. After all, they power basically everything in the smart technology segment.
The electric car segment is stimulating demand for lithium batteries in China
Interestingly, strong demand for electric vehicles is also contributing to China. It is reported that this will stimulate the battery industry in the coming years. As of April this year, a total of 10.33 million new electric vehicles have been promoted in the country. Increased supply and demand act as a powerful force to drive the electrical transformation of the global automotive industry. A recent report even said that growing demand had led to a shortage.
The White Paper report also shows that investment in the country is gradually expanding in southwestern China. Obviously, the Southwest region has the richest mineral resources. The list of minerals includes lithium and phosphorus. There are also large reserves of phosphate rocks in Yunnan, Guizhou and Sichuan. They represent more than 40 percent of the country’s total capacity.
The investment is likely to continue in the coming years. Ultimately, unless new technology emerges, we still see a trend for lithium batteries over the next few years. There are many companies trying to find alternative resources like Graphene, but so far none has advanced enough to become commercial.
Apart from the lithium industry, the country is also a significant force when it comes to cryptocurrencies.
China is the world’s largest lithium battery consumer for five years