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China battery manufacturers focus on efficiency, upgrades and eco-friendliness

Posted: 06 Aug 2010 ?? ?Print Version ?Bookmark and Share

Keywords:China sourcing report? lithium? Ni-MH? lead-acid? dry-cell batteries?

Encouraged by positive industry forecasts, China battery manufacturers and suppliers push expansion plans and product upgrades to meet anticipated demand, with many going "green" according to Global Sources' China Sourcing Report: Batteries. The Sourcing Report, covering lithium / Ni-MH / lead-acid / dry-cell batteries, shows that suppliers aim to attract more orders by increasing expenditure in competitive areas. These areas include improving operating efficiency and developing models with greater storage capacity, improved safety features, and less impact on the environment.

The publisher of the report, Brandon Smith, states, "As the markets of China battery suppliers recover, including the consumer electronics, mobile phone, computer, toy, power tool and automotive sectors, we are seeing a sharper focus on eco-friendliness. Besides releasing more lithium models as applications for these products grow, manufacturers are implementing better waste-management practices at their factories." He adds, "With movements for the protection of the environment mobilizing worldwide, the lithium battery segment is a key growth driver in the industry. China suppliers produced 1.9 billion such units last year and output is expected to certainly rise, especially with the China government throwing its weight behind a plan to promote lithium battery development nationally in 2010."

Fortunately, prices remain stable even with increasing expenditure. The Sourcing Report also examines other trends and developments that are unfolding across the battery industry in China (world's biggest manufacturer of the product). With material costs now stable, product prices are expected to remain at current levels in the year ahead after most companies raised them in the past months.

A supplier survey from the report also highlights: increasing capital expenditure of 90 percent of profiled manufacturers; investment in efficiency upgrades in 73 percent of suppliers; new anode and cathode materials which enhance product performance; anticipated export growth by more than 20 percent in the coming months.

The China battery industry as a whole is expected to experience annual growth of 20 percent or greater over the next few years. The report reveals that many suppliers intend to cultivate a stronger presence in emerging markets such as South and Central America and Africa to enhance sales, even if the European Union and North America would remain the major overseas destinations.

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