A wave of consolidation has swept across China’s battery industry, leading to cancelled investments and the exits of smaller players even as leaders CATL and BYD push ahead with their expansion plans.
In the first seven months of the year, 19 battery gigafactory projects were cancelled or postponed in China, according to London-based research firm Benchmark Mineral Intelligence. That has only accelerated an existing pullback of investment into battery plants as electric-vehicle manufacturers — mainly in Europe — grapple with slowing sales.
“A lot of consolidation has occurred at Chinese facilities where low prices, combined with struggles with yield, means companies have abandoned plans,” said Benchmark analyst Evan Hartley. He has estimated that these cancellations would reduce China’s battery gigafactory capacity for 2030 by 3 per cent.