Demand for lithium batteries has recently surged in China thanks to improving downstream new energy automobile industry. Listed lithium battery producers including Ningbo Shanshan Corporation (600884.SH), Do-Fluoride Chemicals (002407.SZ), and Shenzhen Yinghe Technology Co., Ltd (300457.SZ) said that they got sufficient orders and are operating in full capacity.
Data of the Ministry of Industry and Information Technology (MIIT) showed that China's output and sales of new energy vehicles in August jumped 290 percent and 350 percent year on year, respectively, contributing to the surge in demand for lithium batteries.
Since the beginning of the year, many listed companies such as BYD (002594.SZ; 01211.HK), Ningbo Shanshan Corporation, Great Southeast (002263.SZ), and Camel Group (601311.SH) have increased their investments in the lithium battery field.
Total investment in the lithium battery industry is estimated to reach more than 100 billion yuan in 2015, analysts predicted. With the country's full support to new energy vehicles, sales of new energy vehicles will see a significant increase, which will fuel demands for the lithium battery, analysts added.
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