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.

How will China regulate the lithium battery industry?

China on Wednesday sought to solicit public opinion on draft regulations aimed at regulating its rapidly growing lithium battery industry. The rules, proposed by the Ministry of Industry and Information Technology, are designed to curb unchecked expansion and promote sustainable and high-quality development within the sector.

What's new in China's Lithium-ion battery industry?

China’s Ministry of Industry and Information Technology in June finalised revised guidelines for the country’s lithium-ion battery industry, which set higher standards for energy intensity, power density, cycle life and other battery specifications.

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.

How will China's new lithium-ion battery guideline affect new-energy vehicles?

"China's latest guideline will drive the lithium-ion battery industry to be healthier and more high-end, which will further help the nation's new-energy vehicles gain a more favorable competitive advantage in the global market," he said.

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.