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The market for electric bicycles has become a new battleground for lithium battery companies

June 1, 2020

The market for “lead-to-lithium” in e-bikes is alluring because of its huge lead-storage capacity, but the alternative is not smooth. Cross-border lithium battery enterprises, want to profit from the electric bicycle market, the difficulty can be imagined, in the cost, channels, product standards and other aspects, are facing challenges.

The Great Reversal of Lithium Battery Industry

Nor is such a change in the competition for lithium batteries overnight. Entering 2019, the power battery industry market competition further intensified, industry shuffling accelerated. Under the pressure of more than 50% of the subsidy slope, the main engine factory has put forward more stringent requirements for battery price reduction. At the same time, the new subsidy policy puts forward higher requirements for the comprehensive performance of new energy vehicles and power batteries, which means that the mainframe plant and battery plant need to further upgrade their products.

In order to reduce the cost and improve the market competitiveness, the main engine factory will consider the battery enterprises in terms of product quality, product price, supply capacity and enterprise capital, but not many battery enterprises can meet the above requirements. This also means that the vast majority of battery companies need to adjust the company’s 2019 market strategy to find the company’s product market positioning as soon as possible.

Traditional lead-acid battery manufacturers, long-term deep-tillage electric light-vehicle lithium-ion battery enterprises and from the new energy vehicle power battery field cross-border, the three forces together stirred up the “two-wheeler quack .” In the industry’s view, the admission of lithium battery giant, will likely subvert the traditional bicycle battery competition pattern. Even within lithium batteries, there is fierce competition for different technical routes.

From this year’s market situation, the market pricing of major brands of lithium batteries has been reduced to a certain extent, in the energy density, cleaner environmental protection, more light and other product advantages, lithium battery replacement lead battery pace significantly accelerated. It is expected that China’s lithium electric bicycle will exceed 10 million by 2020, and the penetration rate will exceed 50% by 2021, so as to achieve a great reversal of the industrial pattern.

A number of businesses have started new layouts

The high requirements of the new national standard for electric bicycle and its low cost characteristics make lithium iron phosphate battery one of the most powerful competitors in the electric bicycle power battery market.

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