Iron ore price slumps to three-week low on weak China demand, strong global supply
Property investment in China fell 10.1% in the first half of 2024 from a year earlier.
A new report by Roskill reveals that recent announcements of production capacity expansion made by some Tier 2 battery manufacturers like SVOLT, Envision AESC, and CALB have added more than 87.5GWh to the market analyst’s forecast pipeline by 2030.
In detail, CALB announced in January that it would be adding 25 GWh to its Changzhou plant, while SVOLT said it is going to build two 20-GWh battery cell factories in China, one in Suining and the other in Huzhou. Envision AESC, on the other hand, said it would build a 20-GWh battery cell factory in Ordos, Inner Mongolia, and EVE Energy announced a $1.16 billion investment to expand its cell/module production in China.
In Roskill’s view, these announcements have been driven by secured contracts with clients seeking long-term and high-volume supply agreements.
Roskill forecasts some Tier 2 battery makers will boost their standing and reach Tier 1 status in the next 2-5 years
“Using Envision AESC as an example, once completed, the Ordos, Inner Mongolia plant will be its fifth Li-ion battery gigafactory, with the products scheduled to supply energy storage and automotive industries,” the analysis reads.
“In December 2020, Envision AESC signed the strategic cooperation framework agreement with the Inner Mongolia provincial government, which has strived to build energy storage projects to couple with increasing production of solar and wind power in the region.”
According to the market researcher, these companies were also successful at securing funding, which also allows them to raise capacity. SVOLT is mentioned as a good example, after the firm was able to get a financing round of $540 million in February 2021 to facilitate its ramp-up plan in the manufacturing capacity.
“In 2021, although the scale of manufacturers, like SVOLT, Envision AESC, and EVE Energy, are still incomparable to that of Tier 1 players, like CATL, these battery makers have stood out from other Tier 2 companies,” Roskill reports.
“In a fast-growing industry, Roskill forecasts some Tier 2 battery makers will boost their standing and reach Tier 1 status in the next 2-5 years by improving the quality and scale of Li-ion battery products and securing long-term purchasing contracts.”
