The high density battery push in China seems to have been premature.
The technology is not there to support it and it’s stifling growth and investment.
The higher the energy density, the better the subsidy was the plan.
The lack of clarity in policy and lack of technology would have left many battery producers in limbo, along with the downturn in the Chinese markets, meaning reducing inventory and investment. For now the Chinese policy makers seem to be doing a back turn which may increase demand.
“The aim of removing the regulatory requirement on energy density is to encourage new investment in the EV battery industry, given the current bottleneck in technologies, according to Zhao. She added that the general trend will still be for EV batteries with higher energy density.
“The government will just pause the requirement. However, the whole EV battery industry is still heading towards a trend for a higher energy density,” a third battery materials producer said.
