China’s power battery installations increased 33.5% year over year in July to 74.6 GWh, according to data released Tuesday by the China Automotive Battery Innovation Alliance. The total was down 2.5% from June, ending four consecutive months of sequential growth, but the annual growth rate was the strongest so far this year and the fourth straight month of acceleration.
The latest figures show that lithium iron phosphate, or LFP, batteries continued to gain ground in China’s electric vehicle market. LFP installations reached 63.1 GWh in July, up 40.5% from a year earlier and down just 1.0% from June. Their share of total monthly installations rose to 84.6%, a record high, compared with 83.3% in June. This was the second consecutive month that LFP batteries set a new share record.
By contrast, ternary battery installations totaled 11.1 GWh in July, increasing 1.8% year over year but falling 12.6% from June. Their share of the market slipped to 14.9%, also a record low. The continued decline in ternary battery installations reflects automakers’ ongoing preference for LFP technology, which offers lower cost and improved safety, despite lower energy density.
For the first seven months of the year, China’s cumulative power battery installations reached 410.2 GWh, up 15.4% year over year. LFP batteries accounted for 335.1 GWh, or 81.7% of the total.
Battery production continued to outpace domestic installation demand. Combined output of power and energy-storage batteries reached 218.0 GWh in July, up 62.9% year over year and 5.8% from June. Combined sales came to 185.2 GWh, up 45.5% year over year but down 5.5% from the previous month. Power battery sales totaled 129.1 GWh, while energy-storage battery sales were 56.1 GWh.
Exports also remained strong. Combined shipments of power and energy-storage batteries reached 35.2 GWh in July, up 51.7% year over year, while cumulative exports in the first seven months rose 43.9% to 216.6 GWh. The data suggest overseas markets are becoming increasingly important for Chinese battery makers, even as production growth continues to outpace sales and installations domestically.
Source: CnEVPost
