Skip to main content Skip to main navigation Skip to site search

Coronavirus threatens China’s battery sector dominance

Sneha Susan Elias, Senior Power Analyst at GlobalData, comments: “China’s attempt to fight the coronavirus outbreak has led to delayed production across a number of battery production facilities located in key coronavirus hit provinces and is expected to lower the output of Chinese battery manufacturers by around 26 GWh in 2020.”

The supply constraint will also have an impact on the global EV markets along with energy storage projects, causing project delays or a rise in battery prices. This situation is different from the conventional narrative about grid storage projects and EVs reaping benefits from steady decrease in battery price.

Disruptions in the supply of components

Globally, carmakers are looking for independence from the current supremacy of Chinese battery manufacturers and are aiming to secure their own battery supply chains.

Did you miss that? Europe’s first gigafactory for energy storage systems

Elias concludes: “The industry’s over dependency on China has been showcased recently with the coronavirus outbreak leading to disruptions in the supply of components. China itself is expected to take a beating on production of around one million vehicles. The country exports around US$70bn worth of car parts and accessories worldwide, with nearly 20% going to the US.” (HCN)

If you you have a statement about COVID-19 to share or a story how the pandemic does affect your solar business or how you manage that, let us know.