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1.2 Current Situation of Industrial Development

Correspondingly to the rapid development of the market, the industry is also developing at a high speed. In the impression of real lithium research, before the 2008 Beijing Olympics, the only companies engaged in the development of automotive power lithium battery technology were CITIC, UNITA, Guli, and Wanxiang. After the successful trial operation of 50 electric buses for the Beijing Olympics, the Ministry of Science and Technology launched the "Ten Cities and Thousand Vehicles" plan in early 2009, and the country began to attach importance to the development of new energy vehicles. Afterwards, the number of battery companies developing the automotive power lithium battery market began to increase, and it began to explode after 2013. In 2015, there were as many as 120 companies (including a small number of module suppliers) in China's new energy vehicle market that provided power lithium-ion batteries. Meanwhile, there were no more than 10 overseas markets. China is clearly overheating.

Figure 2. Statistics on the Share of Various Companies in China's Automotive Lithium Battery Market in 2015 (Note: Refers to Battery Cell Companies) (Data Source: True Lithium Research, August 20, 2016)

Although there are many suppliers of lithium batteries for automotive power, the market is still relatively concentrated in the hands of a few manufacturers. As shown in Figure 2, the total market share of the 12 battery manufacturers in Figure 2 exceeds 70%, among which BYD, CATL, Tianjin Lishen, Guoxuan High Tech, and Waterma have a total market share of over 50%. At the same time as decentralization, it is also being centralized, which was the biggest feature of China's automotive power lithium battery market in 2015.

BYD Battery became the largest supplier of automotive power lithium-ion batteries in China in 2015 with a supply volume of 2.9224 million kWh, with a market share of 18.22%. It is an important supplier to BYD Automobile and its affiliated car companies (BYD Daimler and Tianjin Bus). CATL ranks second with 1.7716 million kWh, with over 90% of its products supplied to the new energy bus market, with over 60% supplied to Yutong Bus, and has not yet entered the electric special vehicle market. Tianjin Lishen ranks third with 1.3676 million kWh, focusing on the pure electric vehicle market with relatively scattered customers. More than 80% of Guoxuan High Tech's products are supplied to the pure electric passenger car market, while Wotma is the largest supplier of power lithium batteries in the electric special vehicle market.

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