Research says the electric vehicle battery market will exceed supply in the future

According to foreign media reports, a report released by Bloomberg New Energy Finance on Wednesday stated that in the next two years, the supply of electric vehicle battery market will exceed demand, and supply will reach twice the demand.

According to the report, in 2013, the global automobile manufacturer's electric vehicle production volume will reach 839,000 units, which requires a battery capacity of 18 billion watt-hours. By then, battery manufacturers including LG Chem and Johnson Control will have a capacity of 35 GWh.

This oversupply of market conditions will result in the elimination of a number of small battery companies, or switch to energy storage and other fields. At the same time, the price of batteries will be reduced to 550 US dollars per kWh in 2020, and the current battery price is 800 to 1,000 US dollars. According to Ali Izadi-Najafabadi, an energy technology analyst at Bloomberg New Energy Finance, “Most large Asian companies will adopt joint or cooperative approaches to cope with limited demand and low prices, and small companies may be eliminated in the brutal competition. ”

In April this year, South Korea’s largest chemical manufacturer, LG Chemical, announced that it plans to invest US$1.8 billion in 2013 for expansion of electric vehicle batteries. Nissan Motor Co., Ltd. will also achieve its goal of producing 500,000 power batteries per year in 2015.