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According to Digitimes reports, industry insiders have revealed that China's top battery manufacturers, including Ningde Times, Tianneng Battery, and Shenzhen Tuoban, are building multiple production lines and planning to produce lithium iron phosphate (LFP) batteries for electric bicycles (E-bikes).

In 2019, the Chinese government announced new technical standards for electric bicycles, such as a maximum weight limit of 55 kilograms and a ban on the use of lead-acid batteries, to improve the shared bicycle service industry.

Existing shared bicycle service operators, such as Didi Shared Bike, Meituan, and Harrow Travel, are planning to supply LFP battery based electric bicycle rental services in 2020, which also prompts battery manufacturers to produce LFP batteries specifically for electric bicycles.

According to domestic media reports, the initial rental number of electric bicycles is expected to reach 3 million, while the total storage capacity of LFP batteries will reach 4.5GWh. By 2023, the number of leased vehicles is expected to increase to 5 million, and by 2025 to 8 million, while the demand for LFP batteries will increase to 7.2GWh and 11.5GWh, respectively.

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