ANTAIKE BATTERY MATERIALS CONF: Higher raw materials costs, EV subsidy cuts squeeze producers’ margins

Chinese battery manufacturers’ profit margins are being squeezed significantly by rising procurement costs for battery raw materials, delegates to an industry conference have been told.

Meanwhile, the gradual removal of subsidies for electric vehicles (EVs) with restricted driving ranges has prompted EV makers to pass on the resulting cost increases to battery manufacturers.
Some EV makers have even requested that battery makers cut their prices by 35-40%, Zhang Yu, secretary general of the battery section of the China Industrial Association of Power Sources, told Antaike’s Battery Materials Conference in Shangyu, China, which is being held on July 18-20.
“High EV sales prices set obstacles for further EV penetration among consumers,” Zhang said, “so battery manufacturers are forced to lower their quoted prices because of the phasing-out of subsidies for EVs with low driving ranges.”

Meanwhile, battery manufacturers which are trying to maintain...

Published

Susan Zou

July 19, 2018

18:22 GMT

Shaoxing