China’s Ministry of Industry and Information Technology plans to launch a major update to guide the production capacity of lithium-ion batteries. Industry experts say this will knock out some low-end battery cells and accelerate the country’s high-end lithium-ion battery sector.
The draft guideline guides lithium-ion battery companies to reduce projects that aim solely to expand production capacity and encourages lithium-ion battery companies to strengthen technological innovation, improve quality, and reduce production costs. Companies are required to spend at least 3% of the revenue on R&D and technological upgrades, the draft states.
The China Automotive Power Battery Industry Innovation Alliance predicts that by 2025, the country’s lithium-ion battery production capacity will likely exceed 3,000 GWh. However, the capacity utilization rate of the country’s lithium-ion battery industry dropped to about 40% last year and is likely to reach only 35% by 2025.
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