Strictly control lithium battery production capacity

What are the new lithium battery regulations?

The draft regulations address the environmental impact of the lithium battery industry. These rules impose stricter controls over manufacturing processes to adhere to contemporary environmental standards, which include reducing pollution and optimizing resource use.

What will China's new lithium-ion battery regulation mean for the battery industry?

China's industrial regulator plans to launch a major document to guide the production capacity of lithium-ion batteries, which industry experts said will knock out a batch of low-end battery cells and accelerate the structural adjustment of the country's booming lithium-ion battery sector.

Why should lithium batteries be regulated?

Notably, the draft regulations also encourage companies to focus on technological innovation to improve product quality and reduce costs, instead of production capacity expansion. Lithium battery manufacturers are required to invest at least 3% of their main business revenue in research and development.

Should lithium-ion battery companies reduce production costs?

The Ministry of Industry and Information Technology unveiled a draft guideline on Wednesday that will guide lithium-ion battery companies to reduce projects that aim solely to expand production capacity. Instead, lithium-ion battery companies will be encouraged to strengthen technological innovation, improve quality and reduce production costs.

Is there a'structural excess' in the lithium-ion battery sector?

Mo Ke, founder and president of market consultancy RealLi, said there is some "structural excess" in the lithium-ion battery sector, with insufficient high-quality production capacity but excess low-end production capacity.

What will China's Lithium-ion battery production capacity be in 2025?

The China Automotive Power Battery Industry Innovation Alliance predicted that by 2025, the country's lithium-ion battery production capacity will likely exceed 3,000GWh. However, the capacity utilization rate of the country's lithium-ion battery industry dropped to about 40 percent last year and is likely to reach 35 percent by 2025.