China Shuts Door To Battery Production In 2024

By Shubhendra Anand , 25 July, 2024

The growing concerns over climate change in 2024 are increasing the demand for rechargeable batteries. There has been a surge in lithium-ion batteries since the beginning of 2024. Several studies have developed a substitute for lithium-ion batteries to meet the growing market expectations for 2024. Hence, China's battery production surged in 2024. However, China decided to lower the battery production in 2024 due to the overcapacity of batteries in the market.

According to a survey in 2024, China's battery market surpasses the global demand, which can lead to an oversupply of batteries in the market. Hence, Chinese authorities have decided to put a full stop to battery production in 2024. Chinese authorities have drawn specific guidelines for the domestic battery sector to solve the overcapacity of batteries. Currently, the Chinese battery market stands at a higher position with an extensive production of lithium-ion batteries. It is to support the growth of electric vehicle production in China. 2023 Chinese battery production was at 2,600 gigawatt-hours, twice the global demand. Based on survey data, China exports about 12 percent of electric vehicle batteries in 2024. Other countries have a lower battery production rate compared to China. Therefore, China is currently the leading country in the world in battery production.

It is to be noted that Chinese authorities drafted rules and regulations to lower the overproduction of batteries in 2024. According to that, the battery industry is expected to aim at quality rather than quantity to avoid unnecessary production of batteries in the market. The committee asks industries not to focus on the production capacity to prevent overproduction; however, this draft awaits approval from the production sector on whether to implement these rules in 2024.

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