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The chaos in the lithium battery market is emerging, and integration is imperative

At the same time, the construction of lithium battery standards is lagging behind, and safety accidents are frequent. China has a total of 16 lithium battery standards in fields such as electronics, communication, and light industry, of which only 3 are safety standards, accounting for 19%. However, foreign lithium battery safety standards account for over 60% of the total standards. There are also issues with inconsistent and incomplete safety requirements in various industry standards. In addition, there is a significant gap in the process technology equipment, production environment, and testing conditions of different production enterprises, especially in small manual workshops that lack safety and environmental management, resulting in numerous safety hazards in the factory area and the flooding of low-quality battery products in the market. Explosion accidents and battery fire accidents often occur in the factory area.

In terms of lithium ore resource control, there is insufficient efforts and unreasonable resource allocation. On the one hand, China lacks unified planning for lithium ore resources, with dispersed equity and mining rights, and diverse stakeholders, which is not conducive to the rational exploitation and utilization of resources. On the other hand, a reasonable lithium resource allocation system has not yet been established, and there are some local governments using their resource control rights to seek rent.

Therefore, at this year's National People's Congress and National People's Congress, the Central Committee of Civil Construction suggested that relevant departments need to raise industry entry barriers, promote rational industrial layout and centralized integration. One is to strengthen industry access management. Research and formulate entry conditions for the lithium battery industry, with a focus on technical level, production scale, resource utilization, safety requirements, and other aspects, to prevent blind regional investment and blind expansion of production capacity. The second is to adhere to the strategy of supporting the fittest and the strongest. Guide fiscal, financial, land and other resources to tilt towards key enterprises, promote mergers and acquisitions, strong alliances within the industry, and create a group of leading enterprises. The third is to accelerate the intensive development of industries. Guide enterprises to gather in industrial parks such as national demonstration bases for new industrialization industries, improve the upstream and downstream industrial chains, and achieve intensive development.

Explore a new market for lithium batteries and achieve the coordinated development of power lithium batteries and energy storage lithium batteries. One is to continuously strengthen technological innovation, improve the quality of lithium batteries, extend their service life, and enhance the integration and development capabilities of power battery systems. The second is to vigorously develop the energy storage lithium battery market to solve the problem of day and night imbalance in China's electricity supply and demand, as well as the instability of photovoltaic and wind power, which cannot be directly connected to the grid. The third is to promote the development of energy storage photovoltaic charging stations for electric vehicles.

Improve awareness of the safety of lithium batteries and establish a long-term safety management mechanism. Firstly, establish technical supervision standards for lithium battery production as soon as possible, and strengthen supervision and testing efforts. The second is to establish a safety and environmental management system for lithium battery enterprises, strengthen standardized management, and increase training for operators. The third is to encourage the development of high-quality battery separators with independent intellectual property rights, ensuring battery safety and improving performance. Fourthly, research and establish a standardized recycling and reuse system for lithium battery products, and accelerate the development of lithium battery recycling enterprises.

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