According to CCM, the battery separator industry in China is showing an incredible growth in this period, best of all the wet process separator industry. This trend will lead very likely to a domination of this industry in the whole separator industry in the near future.
Digital electronic products take a huge part of the daily life of almost everyone nowadays. Also, alternative energy experiences a high level of demand throughout the world. These developments lead to the fast-growing Lithium-Ion battery market, especially in China, because it is used a lot in the high-end digital market as well as in the power battery market. Related to the growing Li-ion battery market, the whole separator industry is seeing an increasing demand worldwide, leading to a fast increase of this industry. According to CCM, the total output of Li-ion battery separators worldwide reached around 1.72 billion in the year 2016. Looking back at 2010, the output was on a low level around 500 million .
China’s manufacturers are benefitting strongly from the fast growth of the industry, exceeding the output of battery separators every year once more. The market of China’s Li-ion battery separator market achieved a growth of about 33% in 2016, compared to the previous year. The share of wet process separators was around 42% in 2016, almost gaining half of the total share. More than half of the share for wet process separators is expected to be realized until 2018, according to CCM.
What’s more, the superior production of wet processor separators in comparison to dry processor separators worldwide can also be seen in the number and market share of the leading manufacturers in China. The four leading manufacturers of battery separators have a market share of over 55%, of whom three belong to the business of wet processor separators, while one is focusing on the dry processor separators.
According to CCM, China’s Li-ion battery separator industry will experience a huge change in the new future, preferring the usage of wet process separators for production instead of dry process separators. The market furthermore will be mainly determined by a growth of the power market, high-end digital market as well as the trading.
The demand of wet process separators in China is mainly driven by the growing alternative energy vehicle industry. However, even the process separator industry is rising largely, the demand of those products can’t be met yet by China’s producers. The main reasons for the short supply, according to CCM, are high barriers in technologies, a long production line, and uncertainties in the capacity attainment. This all results in a fairly long time for a capacity expansion of Chinese manufacturers.
What’s more, the huge market demand for separators is very likely to increase global capacity. This may bring quantity increases and related price collapses. The global demand for Li-ion was almost 2 billion in 2016, which represents a growth rate of about 33% from 2013 to 2016.
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets.
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