Leading companies are competing to release new batteries to prepare for this huge market丨CBIS2024 Outlook

2024-09-26

In order to encourage consumers to choose safer and better-performing products and promote the upgrading of electric bicycle consumption, on August 30, the Ministry of Commerce, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the State Administration for Market Regulation, and the National Fire and Rescue Administration jointly issued and released the "Implementation Plan for Promoting the Replacement of Old Electric Bicycles for New Ones":

The plan proposes to provide subsidies to consumers who return their old electric bicycles and exchange them for new ones; and to increase subsidies appropriately for consumers who return their old lithium-ion battery electric bicycles and exchange them for lead-acid battery electric bicycles.

Note: That is, in addition to the amount paid for selling the old car, consumers will also receive a subsidy for buying a new one.

Consumers can exchange for electric bicycles with lead-acid batteries before November 1, and for electric bicycles with lead-acid or lithium-ion batteries after November 1.

When consumers replace their electric bicycles with lithium-ion batteries, it is recommended that they give priority to purchasing qualified electric bicycles and lithium-ion battery products produced by companies included in the announcement list.

If it is found that unqualified products are used as replacement products, no subsidies will be given. If unqualified products are used as replacement products knowingly, it will be regarded as fraud in obtaining subsidies.

Consumers who receive subsidies are encouraged to purchase qualified new electric bicycles produced by companies that meet the "Electric Bicycle Industry Standard Conditions".

Severely investigate and punish the sale of electric bicycles that have not undergone mandatory product certification and do not meet national standards.

On the sales page of electric bicycle related products, it is clearly stated that "illegal modifications are prohibited."

01

Which companies are compliant electric bicycle manufacturers?

Compliant electric bicycle manufacturers should register in accordance with the law and abide by national laws and regulations. Qualified electric bicycle products should have a certificate of conformity and pass the compulsory product certification (CCC certification) to prove that the product complies with relevant safety standards and other relevant regulatory requirements.

On April 29 this year, the Ministry of Industry and Information Technology and other departments jointly issued the "Standardized Conditions for the Electric Bicycle Industry" and the "Administrative Measures for Standardized Announcements for the Electric Bicycle Industry";

On June 18 this year, the revised version of the "Lithium-ion Battery Industry Standard Conditions" was released, which put forward higher requirements for production enterprises in terms of strengthening product quality, improving production safety, and protecting consumer rights;

On August 19 this year, the Ministry of Industry and Information Technology announced the first batch of companies that meet the "Electric Bicycle Industry Standard Conditions" and simultaneously announced the eighth batch of companies that meet the "Lithium-ion Battery Industry Standard Conditions".

02

Why promote the replacement of old electric bicycles with new ones?

Li Ziwen, deputy director of the Industrial Office of the Institute of Industrial Economics and Technological Economics of the National Development and Reform Commission, introduced that the implementation plan promotes consumption to force supply to increase, and supports consumers to replace old products with new ones. In essence, it allows products with more advanced technology, better performance, and especially higher safety factors to stand out in the market, and continuously expand the market share of high-quality products. In this way, backward technologies, products, and production capacity that do not meet national standards and have relatively large safety hazards will be withdrawn from the market faster, and the standardization and safety level of the entire industry will be improved from the supply side.

03

Which battery companies will benefit?

The introduction of this policy will directly benefit lead-acid battery companies, mainly because in terms of subsidies, consumers who replace old lithium-ion battery electric bicycles with lead-acid battery bicycles will be given appropriate subsidies, which is expected to re-stimulate the demand for lead-acid batteries;

On the other hand, it will benefit the leading lithium battery companies that comply with the law. At present, with the improvement of economic living standards and the rigid demand for short-distance travel, consumers have a strong demand for replacement electric bicycles with higher intelligence, longer mileage and higher safety factors.

Lithium batteries can meet consumers' demands for long-range and intelligent operation due to their high energy density, long cycle life, and lightweight. It is worth noting that the plan explicitly encourages consumers to give priority to purchasing qualified electric bicycles and lithium-ion battery products produced by companies listed in the announcement list when exchanging for lithium-ion bicycles.

In terms of the selection of safe lithium batteries, the country has successively issued the "Electric Bicycle Industry Standard Conditions", "Safety Technical Specifications for Lithium-ion Batteries for Electric Bicycles", and "Lithium-ion Battery Industry Standard Conditions" since this year to safeguard the development of high-performance, long-endurance, and high-safety lithium-ion electric bicycles.

At the same time, last month, the Ministry of Industry and Information Technology of China also announced the eighth batch of companies that meet the "Lithium-ion Battery Industry Standard Conditions" based on the above-mentioned standard conditions, providing a reference for consumers. Among them, Xingheng Power, Keneng New Energy, Xinwangda, Xinneng'an, Chaowei, BYD, Desay Battery, and Narada Power are on the list, and other outstanding companies are expected to be announced in subsequent batches. As Li Ziwen said, the introduction of the subsidy policy will help "products with more advanced technology, better performance, and especially higher safety factors to stand out in the market, and continuously expand the market share of high-quality products." And then increase the market share of high-quality head battery companies.


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