Power Battery Installation Rate Trends and Future Outlook in China

TapTechNews May 19th news, Cui Dongshu of the China Passenger Car Association yesterday posted an article, claiming that the overall power battery installation rate shows a decreasing trend year by year. In April this year, the power battery installation rate in China decreased by 1% to 45%, although it slightly rebounded compared to the 'low point' of 41% in February, there is still a huge gap compared to 86% in December 2020.

Cui Dongshu pointed out that with the adjustment of the policy for improving the cruising range of electric vehicles, the market for low-end small and mini electric vehicles has shrunk, and the growth of the pure electric vehicle market is sluggish, while extended-range and plug-in hybrid models continue to grow, and the policy change has also led to the growth rate of the demand for electric vehicle battery installation being slower than the growth of the total vehicle market.

In terms of demand growth, TapTechNews learned from the query table that the demand for power battery installation from 2019 to 2023 showed a fluctuating growth trend, among which the demand growth in 2021 was particularly significant, reaching 143%; however, the relevant data has gradually decreased since then. In April 2024, the installed capacity of lithium batteries increased by 41% year-on-year, of which ternary batteries accounted for 28% and lithium iron phosphate batteries accounted for 66%, showing a trend of slowing growth of ternary batteries.

Looking to the future, Cui Dongshu predicts that in the future, vehicle manufacturers will play a more important role in the supply chain, and the control over battery enterprises and the upstream industrial chain will be further strengthened. In the field of new energy vehicles, the trend of 'the vehicle is king' will be more obvious.