Tire Pressure At Fault In 5 Percent Of Accidents...
News
Reviews
Guides
Gas Mileage
Car Types

Too Many Lithium Batteries and Battery Makers By 2014?

 
2,647 views Mar 12, 2010

The Hymotion kit not only fits under the load deck, it also complies with the same rear-crash and emissions standards as any new car.

The Hymotion kit not only fits under the load deck, it also complies with the same rear-crash and emissions standards as any new car.

Enlarge Photo

On numerous occasions in the recent past, reports have stated that lithium-ion and batteries made with this material would be in short supply for the near future.  The reasoning behind the shortage is simple, battery makers simply don't have the capacity right now to churn out these batteries at a high rate.  Now, a new report states that there will be an overcapacity of lithium-ion batteries by 2014.

According to the report conducted by Roland Berger Strategy Consultants titled "Powertrain 2020: Li-ion batteries - The next bubble ahead?", there could be too many lithium-ion batteries and battery producers by as early as 2014.  The report states that the U.S. and Japan have ramped up production so quickly that li-ion capacity could quickly outpace demand.  As the report states, there will be "significant overcapacity" between 2014 and 2017.

The downside of overcapacity is that it is likely to drive several smaller battery makers right out of the market. As the report states, only 6 to 8 battery manufacturers will survive beyond 2017.  Today there are more than 50 li-ion battery makers.

How much overcapacity will exist?  Quoting the report, "Given the announced investments, capacity in 2015 will already reach 200% of the demand projected for 2016. In addition, not all investments have been announced; as-yet unknown investments by key players will lead to further overcapacity, and national subsidies will stimulate even more investments."

That amount of overcapacity is significant, but will be non-existent if electric vehicle take the market by storm.  It is still anyone guess how it will turn out, but this is one of the first reports to hint at over rather than under capacity.

Source:  Green Car Congress





Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (3)

  1. By Chris O Posted: 3/12/2010 11:19am PST

    Overcapacity...Renault-Nissan is preparing production capacity for 500000 EV's and no self respecting carmaker can afford to be seen without at least one prototype EV anymore...Clearly times are changing and batteries hot. It all hinges on price and quality. Battery makers that can produce the right product at the right price point can't make them fast enough for a long time to come. Nothing like a little overcapacity to spark the innovation needed to get a better product at a lower price by the way. The market potential for the "miracle battery" (300WH/KG, 3000 cycles at $200 per KWH?)is limitless of course..
     
    Post Reply
    Vote
    Bad stuff?

  2. By Noel Park Posted: 3/14/2010 4:33pm PDT

    We should have such a problem, LOL. My favorite management text is "The Dilbert Principle" In it Scott Adams explains that the word "consultant" is actually a contraction of "con-man" and "insult".
     
    Post Reply
    Vote
    Bad stuff?

  3. By Roy H Posted: 3/15/2010 4:51pm PDT

    I think they are absolutely right. The number of new battery manufacturers are mushrooming up like crazy. The article says more than 50. The problem is that most of these new start-ups are me-too copycats who are under the mistaken impression that batteries are a commodity. All of these companies producing yesterday's design will go out of business. Only the companies with advanced research departments or being born out of new research from universities etc. will survive, and not even all of them. Auto batteries are evolving at breakneck speed and demand for the latest and greatest will far outstrip supply, but standard LiFeO will be obsolete shortly.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Find Green Cars

Go!


More from High Gear Media

 
 
Green Car Reports
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 Green Car Reports. All Rights Reserved. Green Car Reports is published by High Gear Media. Send us feedback. Stock photography by Homestar, LLC.