[The Korea Industry Post, 2016. 06. 02]
NCM⋅NCA -type electric vehicle battery makers are expecting Chinese government will once again open chance to the typical types of ternary battery market in China.
Few months ago, Chinese government announced that it will stop offering incentives when buying electric bus powered with NCM⋅NCA-type battery pinpointing safety problems.
Unlike the government release, people familiar with the matter states modified was a measure to encourage Chinese battery makers catch up with Korean battery makers’ supremacy in the market.
Generally, NCM⋅NCA-type automotive batteries have higher energy density but are less stable compared to LFP-type.
Korean battery makers uses battery management system, or BMS to make the less stable, high energy density NCM⋅NCA-type batteries stable enough for commercial use.
Chinese makers produce LFP-type battery because of high technological entry barrier of BMS.
NCM⋅NCA-type batteries are likely preferred by Chinese electric automakers in aspect of high energy density, but it is too costly compared to government aided LFP-type.
Eventually the NCM-type battery demand dropped sharply with the modified rules and Samsung SDI had to leave its battery production lines idle.
However, according to the industrial source, the Korean battery maker recently started boosting operation of its electric car battery facility.
It reported that Samsung SDI resumed giving orders to its vendors to purchase parts and materials related to battery production.
Some analysis give assumptions that Chinese government will resume offering the incentive to NCM⋅NCA-type batteries buyers, as there are no other reason for Samsung SDI to produce battery in full capacity.
Samsung SDI’s Xian facility can annually produce battery cells for 40,000 electric cars, meaning 3.84million cells produced per year. About 96 lithium ion batteries cells power one electric vehicle.
KIPOST found that Xian facility can actually produce more than it was reported, producing 5.64million cells annually.
by Brian Ahn
ahngija@kipost.net
translated by Taegeun Kim
ktg1130@kipost.net