Reasons why battery companies suspend orders

Why are battery prices falling?

Companies from battery makers and lithium miners to cathode and anode producers have suffered a profit decline because of falling battery prices, caused by an overexpansion in response to a demand surge between 2021 and 2022.

How many battery manufacturers will survive the wave of consolidation?

SVolt chair Yang Hongxin has warned that fewer than 40 battery manufacturers could survive the wave of consolidation by the end of this year. “Previously, tier-2 and tier-3 battery makers participated in pricing competitions to grab more market share. Currently, even the biggest players are lowering prices,” said Yang at an event last month.

Why did svolt abandon plans to build a battery plant in Germany?

SVolt Energy Technology, which was spun off from carmaker Great Wall Motor and the seventh-largest battery maker in China, abandoned plans in May to build a battery plant in eastern Germany, citing uncertainty over planning, tariffs and subsidies, as well as the loss of a leading customer.

Should Chinese battery manufacturers go overseas?

But Shang at Wood Mackenzie cautioned that Chinese battery manufacturers, even the bigger ones, are likely to face challenges in their overseas ambitions as they face a different regulatory environment as well as the geopolitical uncertainty. “Chinese companies want to go overseas but they are becoming more realistic,” Shang said.

How many battery Gigafactory projects have been cancelled or postponed in China?

In the first seven months of the year, 19 battery gigafactory projects were cancelled or postponed in China, according to London-based research firm Benchmark Mineral Intelligence. That has only accelerated an existing pullback of investment into battery plants as electric-vehicle manufacturers — mainly in Europe — grapple with slowing sales.