The market scale of new Battery materials in China is estimated to have reached 2.77 billion yuan, with 62.2% compound annual growth rate in 2000-2004.

China’s new battery material market is characteristic of fast growth with unbalanced market structure. Lithium battery and solar battery materials occupy a large market share as against materials for fuel battery, which mainly depend on import.

In the market of lithium battery, the country has established a complete production network. Such major lithium battery manufacturers as Shenzhen Beyard, Senzhen BAK, Shenzhen B&K and TCL Battery have grabbed large international market shares, thanks to material suppliers of negative and positive poles and electrolytes, including CITIC Guoan MGL (MGL), Ningbo Jinhe New Material Co., Ltd., Shanshan Enterprise, Zhangjiagang Guotai-Huarong New Chemical Materials Co., Ltd., etc., but they are relatively weak in producing insulating films. Some lithium battery material suppliers have exported positive poles of lithium battery to South Korea, a big producer of cell phones in the world.

In the market of solar battery, the annual output of solar battery has grown rapidly, pulling up production of materials for solar battery. At present, main producers of silicon for solar energy in China are Luoyang Monocrystalline Silicon Plant, Sichuan Emei Semiconductor Material Plant and Hebei Ningjin Monocrystalline Silicon Base, which is the largest base in the world to produce monocrystalline silicon, occupying around 25% of the global market. Major Chinese solar battery suppliers include Baoding Yingli New Energy Resources Co., Ltd., Wuxi Sunteck Co., Ltd., Kaifeng Solar Battery Plant, Yunan Semiconductor Devices Plant, Qinghuangdao Huamei Guangfu Electronic Plant, Zhejiang Zhongyi Solar Energy Plant, Ningbo Solar Electronic Power Plant, Tianjing Jingci Solar Energy Plant.

In the market of fuel battery, capital investments are concentrated only in the production of fuel battery (say, 0.6 billion yuan were invested in electrically operated motor car in the “863” Program), leaving material suppliers and manufacturers less invested. New technologies and innovations are urgently needed for fuel battery materials.

The price trend will see decrease in small extent in lithium battery materials, descent in light board of solar battery and sharp drop in costs of fuel battery materials.

It is predicted that the average price of lithium battery materials is to decrease in small extent from 2005 to 2009 as more manufacturers join the competition and the technology is reaching maturity.

The price of light board of solar battery is anticipated to drop by half in 10 years due to technological progress and enlarging production.

The price of fuel battery is predicted to reduce 1/5 if the imported fuel battery materials can be made in China.

Lithium battery will need such materials as lithium cobalt nickel oxide, Nano-sized Carbon materials, mixed poly-electrolytes, and thinner insulating membranes. Solar battery requires production of monocrystallin silicon and multicrystallin silicon, and membrane solar battery may lead the market in the future. Fuel battery demands the catalysis of high-efficiency, high-activity and high-dispersity.

CCID forecasts that the market of new battery material is expected to grow speedily with 37% compound growth rate in 2005-2009, and the market capacity is likely to rise from 3.59 billion yuan in 2005 to 12.63 billion yuan in 2009.

CCID therefore suggest investors:
1. The market of insulating films holds great potentials in China, and that of positive and negative poles and electrolyte is reaching maturity.
2. Organic materials will be the preferable choice for solar battery.
3. Research and development of fuel battery materials are needed in China, especially in catalysis, dipole board and conducting film.

CCID also suggests that for better development of battery materials market, suppliers of the upstream section (materials, parts, equipments), mid-stream section (batteries) and downstream section (cell phones, laptops, digital cameras, electrically operated bicycles, electrically operated motor cars) should work together to enhance efficiency and reduce costs and risks.


Globally, the market scale of new battery materials has expanded from 1.38 billion US dollars in 2000 to 2.44 billion US dollars in 2004, with a 15.3% compound annual growth rate. The market scale of lithium battery, solar battery and fuel battery respectively reached 6.03 billion U.S. dollars, 2.79 billion U.S. dollars and 0.5 billion U.S. dollars in 2004. Global sales revenue of lithium battery materials experienced a zigzag trend from the annual 470 million dollars in 2000 down to 390 million dollars in 2001 but up to 580 million dollars in 2004, with compound annual growth rate of 5.4% from 2000 to 2004. The 2004 market scale of silicon chip reached 1.64 billion U.S. dollars with 18.6% compound annual growth rate from 2000-2004. Fuel battery materials sales reached 0.22 billion U.S. dollars globally in 2004.

Energy-saving and environment-friendly batteries recently developed fast due to global economic recovery and production of cell phones, laptops, digital cameras and electrically operated motor cars. China’s state policies also helped increase battery production. The tenth five-year plan (2001-05) and the “863” Program set R&D of lithium battery as a key project. The 2008 Olympic Games and the 2010 World Expo would prompt Beijing and Shanghai to strengthen their application of fuel battery. The “Sunlight Program”, a program for development of solar energy, will involve 10 billion yuan to carry forward solar electrical energy generation.

Now, some Shanghai and Shenzhen listed companies are engaged in new battery materials. They include CITIC Guoan (000839), Shanshan Enterprise (600884), Jade Bird Huaguang Group (600076), Veken Elite Group (600152), Changchun Jingkai Group (600215), Aucma Group (600336), Tianwei Baobian Electric (600550), TCL Group (000100), Fenghua Group (000636), Pianzhuan Group (000697), Suangdeng Group (000835), and South Huiton Group (000920).