【New Energy Vehicles】Possibly Dominating Half of the Car Market Next Year

Recently, Miao Wei, a member of the National Committee of the Chinese People's Political Consultative Conference, Vice Chairman of the Economic Committee, and former Minister of Industry and Information Technology, stated at the founding meeting of the "China All-Solid-State Battery Industry-Education-Research Innovation Platform" and the China All-Solid-State Battery Innovation Development Summit that China's new energy vehicles have entered a new phase of comprehensive market expansion. To Learn More About Lithium Battery Anode Materials and Related Products. It is anticipated that the goal set for 2035, where the penetration rate of new energy vehicles exceeds 50%, might be achieved 10 or even 9 years ahead of schedule. In other words, by 2025 or 2026, new energy vehicles are expected to account for more than half of new car sales.

Statistics disclosed by the China Association of Automobile Manufacturers show that in 2023, the production of new energy vehicles continued to grow rapidly, reaching 9.587 million units, a 35.8% increase year-on-year, with sales reaching 9.495 million units, up 37.9% year-on-year. The market share reached 31.6%, up 5.9 percentage points from the same period last year; production and sales have been the highest globally for nine consecutive years.

Miao Wei pointed out, according to data released by the China Association of Automobile Manufacturers, of the 9.495 million new energy vehicles sold in 2023, 1.2 million were exported as complete vehicles. New energy vehicles have become a new growth pole for China's automobile exports.

When discussing new energy vehicles, the topic of the development of their "heart" - the power battery - is always closely associated. It can be said that the iteration of power battery technology and its cost significantly affect the competitiveness of downstream vehicle products and are the main engine for the electrification transformation of the automobile industry.

"In 2023, among the top ten companies in global power battery installation, six are Chinese companies, with a market share of over 60%, continuing to maintain a global lead," Miao Wei said.

Currently, the global new energy vehicle industry has entered a new stage of accelerated development, which places higher demands on power battery technology innovation and quality performance. In this context, promoting collaborative innovation up and down the industrial chain, accelerating the application of new materials and technologies, and enhancing the technical quality level and overall competitiveness of products are the focus of the current development of the power battery industry.

Based on this, Miao Wei suggests establishing a technology innovation system that combines industry, academia, and research with enterprises as the main body. "The development experience of new energy vehicles shows that as long as enterprises are the main body, there will be no problem in industrializing technological innovations."

At the same time, the roles of the market and the government should be fully leveraged. "Here, the market plays a decisive role; the industrialization of solid-state batteries is mainly achieved by automotive companies, and cost-effectiveness is the primary choice for power battery companies to win the trust of automotive companies. Of course, the guiding role of the government is also indispensable," said Miao Wei.

Additionally, it is important to adhere to the principle of standards first, carrying out standardization work in aspects such as the specifications and dimensions of solid-state batteries, performance testing, and safety indicators to build a standard system in advance.

Finally, Miao Wei believes it is necessary to accelerate the construction of a carbon footprint accounting system for power batteries, establish accounting standards, and build an industry-recognized database. Launching a "battery passport" that accompanies the power battery throughout its life cycle to achieve low-carbon management of the power battery's entire lifecycle will enhance the industry's international competitiveness. "The advantage of this approach is also that it allows most of the materials in waste batteries to be recycled, which is a viable way to solve the problem of high dependency on foreign resources," Miao Wei concluded. For more insights into the electric vehicle market dynamics, feel free to contact us anytime.