Prices for lithium batteries are expected to increase as the costs of the battery components have soared. Battery components such as Lithium Carbonate, Lithium Hydroxide, Lithium Chloride and Lithium Salt have increased by 15-25% as of 1st July.
Since May 2011, the Chinese government has started to forbid the production of lead-acid batteries nationwide, causing a supply shortage of lead-acid batteries and subsequent price increase. The big majority of the millions of e-bikes sold every year in China are equipped with lead-acid batteries. The turn to Li-Ion batteries will drive up demand and with that also prices.
“The price increase will bring closer the wide price gap between (the) PB battery and Li-ion battery, and therefore create an opportunity for the growth of Li-ion batteries,” commented Ma Zhongchao, Chairman of China Bicycle Association. “However, as the price of Li-ion battery goes up, it will become more difficult to popularize Li-ion e-bikes.”
As e-bikes are a low-margin industry in China, the price increase of Li-ion batteries will make it harder for e-bike manufacturers to alleviate cost pressure. Ma hopes that the Chinese government can support the popularization of Li-ion e-bikes by increasing subsidies to e-bike manufacturers. “I hope that within 3 years, the market share of Li-ion e-bikes will grow to 15% in China,” he says.
Source: BikeEurope.
