With the implementation of the new national standard, recently, a third-party authority released the first research report on lithium battery in China’s e-bike industry.

This research report is completed by GGII based on much field research on lithium batteries used on major light bikes as well as the upstream and downstream enterprises and a lot of collected first-hand information, combining face-to-face interviews with industry leaders, which makes a good basis for better interpretation and analysis of lithium battery e-bike industry.

A brighter future for lithium battery e-bike market

Currently, lithium battery e-bikes are mainly used in China (55%), Europe (32%), Japan and South Korea (9%), North America (3%) and South Asia (1%). From 2019 to 2023, the lithium battery e-bike market will have a compound growth rate of 23%, and it is estimated to have a market size of 33.1 million units in 2023. This indicates that lithium battery e-bikes have entered a rapid development period.

The development of lithium battery e-bikes in the Chinese market is particularly fast. In 2018, the sales volume of lithium battery electric bicycles reached 4.11 million, with a year-on-year growth of 62.5%. The penetration rate of lithium battery electric bicycles in the e-bike market reached 12.45%. It is expected to reach 10 million units in 2020 and reach a penetration rate of 50% in 2021. Lithium battery will largely replace lead acid battery by then.

Giants appear in e-bike lithium battery market, the second echelon is still competing with each other.

In 2018, the worldwide shipments of lithium battery for electric bicycles were 8.33 million sets, and China’s shipments were 5.95 million sets (including exports) with its reserves (excluding exports) totaled 3.77 million sets.

At present, there are more than 70 e-bike lithium battery enterprises in China, which nearly doubled the number of 40 in 2017, and new brands keep rising in the industry. This also indicates that the e-bike lithium battery market has been widely deemed as optimistic. The market is expected to see a round of fierce competition in the future.

Cube battery rises while cylinder-shaped battery recedes.

From 2018 to 2019, the application cylindrical lithium battery on bicycles increased, mainly due to the low entry threshold of 18650 model. With increasingly higher demand for safety, quality, stability and modularization of lithium battery, cube battery will continue to expand its application.

Chinese lithium battery continues to have cost advantage.

After years of development, the product technology of lithium battery in China gradually matures and the industrial chain is complete. The previous cost and price problems that hindered the popularity of lithium battery are gradually solved. From this year’s market situation, the major lithium battery brands in the market have reduced their pricing. With many advantages such as larger energy density and being more environment friendly and lighter, lithium battery will gradually take over the market share of traditional lead-acid battery, ushering in a broader space for development.

The application of lithium battery on electric vehicles has been widely discussed more than ten years ago, but due to technology, cost, market conditions and many other factors it did not become the mainstream, with a market share remaining below 3%. However, with the upgrading of consumer demand and the implementation of the new national standard for electric two-wheelers, the industry is facing a new round of product restructuring and technology upgrading. As the power core of electric vehicles, the battery is bound to enter a real lithium battery era.(Source: WeChat: yingshangddc)