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Lithium battery technology 2.0 new era of new energy car boom broke out
In a recent update, the Ministry of Industry and Information Technology (MIIT) released the "Notice on Production Enterprises and Products for Road Motor Vehicles" in its 304th batch. This release includes 167 models from 73 companies applying for new energy vehicle products. Among these, 153 models from 68 companies are pure electric vehicles, while there are 9 hybrid models from 7 companies and 5 fuel cell models. The notice highlights a growing trend in the adoption of new energy technologies in China's automotive sector.
Jia Xinguang, a chief analyst at the China Automotive Industry Consulting and Development Corporation, noted that rising fuel prices, increased government investment in charging infrastructure, and tighter restrictions on traditional fuel vehicles have all contributed to a shift in consumer preferences toward new energy vehicles. He predicts that this momentum will lead to a significant boom in the new energy sector starting this year.
According to the latest report from MIIT, there are 36 new energy passenger vehicles, 65 new energy passenger vehicle products (including chassis), and 66 special vehicle products (also including chassis). New energy passenger cars make up 21.6% of the total new energy catalog, with 29 being fully electric and 7 being plug-in hybrids.
The list also reveals that several emerging brands, such as Haima, Jiangling, Hangzhou Changjiang, and Hebei Hongxing, are making their mark in the new energy vehicle market, alongside established players like BAIC New Energy, BYD, and Yundu.
Battery technology is advancing rapidly, marking the beginning of a new era for lithium-ion batteries. As the core component of electric vehicles, battery innovation is crucial for overcoming challenges like limited range and long charging times. In 2017, the MIIT announced the first batch of companies meeting the "Lithium-ion Battery Industry Regulatory Conditions," including Ningde Times, which was the only energy storage battery company selected. A second batch later added 18 companies, showing a significant increase in industry participation.
Industry analysts suggest that the rise in energy storage battery companies reflects the growing demand driven by the expansion of the new energy vehicle market. According to the China Automobile Association, new energy vehicle production and sales reached 774,000 and 777,000 units in 2017, representing a 53.8% and 53.3% year-on-year increase, respectively.
Several companies have also made notable progress in lithium-ion battery technology. Lanxiao Technology recently completed a lithium carbonate production line in Qinghai, while Jiangte Motor is expanding its capacity, with new facilities expected to be operational this year.
Globally, the electric vehicle market is witnessing substantial investment. Ford recently announced it would double its electric vehicle investment to $11 billion, bringing the total global investment in battery and electric vehicles to $90 billion. Although electric vehicles still represent a small portion of the global market—less than 1% of annual sales—they are gaining traction, especially in China.
China remains the world’s largest auto market, with over 29 million vehicles produced and 28.8 million sold in 2017. More than 25% of global car sales were attributed to Chinese consumers. Meanwhile, many countries, including Norway, the Netherlands, Germany, India, the UK, and France, have set clear timelines for phasing out internal combustion engine vehicles, signaling a global shift toward sustainable transportation.
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