Investments reduces 20% amidst Chinese economic shifts
POWER & RENEWABLE ENERGY

Investments reduces 20% amidst Chinese economic shifts

Recent research from Rystad Energy revealed a notable decline in global battery investments for the first time since 2020, marking a significant shift from the continuous growth experienced over the past four years. The downturn has been mainly attributed to a slump in battery infrastructure investments in mainland China.

The report indicated that the drop in investments is largely due to several challenges facing the Chinese market, including policy changes, increased electric vehicle (EV) adoption, supply shortages, rising raw material costs, and rapid capacity expansion. Despite a surge in production exceeding 40% annually in 2021 and 2022, the growth rate has now moderated, reflecting the industry's transition towards maturity and ongoing expansion efforts.

Duo Fu, Vice President of Battery Market Research at Rystad Energy, noted that China's dominance in battery investment and lithium trade appears secure for the foreseeable future due to its control over key resources. He commented on the challenges of establishing new facilities, stating, "Building a battery factory from scratch takes years, and navigating local regulations adds even more time. This means the market two years from now remains unpredictable. Collaboration across the entire supply chain is crucial for the industry's health."

The slowdown in China has impacted the global market, with Europe facing concerns about potential delays and cancellations of EV infrastructure projects, compounded by decreasing demand in the EV sector. This trend reflects broader issues within the EV industry, influencing the financial outcomes and stock prices of original equipment manufacturers (OEMs) worldwide.

In the United States, there has been a significant increase in lithium demand due to the need for secure supply chains. However, both Europe and the US are struggling with challenges in ramping up lithium-ion battery (LIB) production due to developing industrial infrastructure. To mitigate dependence on Chinese supply chains, both regions are implementing policies to enhance energy security.

Amid these developments, the LIB sector is also experiencing a rise in innovative technologies aimed at reducing costs, increasing energy density, and improving safety measures. This includes new materials such as composite copper foil and silicon-based anode materials, as well as advancements in battery structural systems like the larger 4680-cylinder batteries and solid-state batteries.

Recent research from Rystad Energy revealed a notable decline in global battery investments for the first time since 2020, marking a significant shift from the continuous growth experienced over the past four years. The downturn has been mainly attributed to a slump in battery infrastructure investments in mainland China. The report indicated that the drop in investments is largely due to several challenges facing the Chinese market, including policy changes, increased electric vehicle (EV) adoption, supply shortages, rising raw material costs, and rapid capacity expansion. Despite a surge in production exceeding 40% annually in 2021 and 2022, the growth rate has now moderated, reflecting the industry's transition towards maturity and ongoing expansion efforts. Duo Fu, Vice President of Battery Market Research at Rystad Energy, noted that China's dominance in battery investment and lithium trade appears secure for the foreseeable future due to its control over key resources. He commented on the challenges of establishing new facilities, stating, Building a battery factory from scratch takes years, and navigating local regulations adds even more time. This means the market two years from now remains unpredictable. Collaboration across the entire supply chain is crucial for the industry's health. The slowdown in China has impacted the global market, with Europe facing concerns about potential delays and cancellations of EV infrastructure projects, compounded by decreasing demand in the EV sector. This trend reflects broader issues within the EV industry, influencing the financial outcomes and stock prices of original equipment manufacturers (OEMs) worldwide. In the United States, there has been a significant increase in lithium demand due to the need for secure supply chains. However, both Europe and the US are struggling with challenges in ramping up lithium-ion battery (LIB) production due to developing industrial infrastructure. To mitigate dependence on Chinese supply chains, both regions are implementing policies to enhance energy security. Amid these developments, the LIB sector is also experiencing a rise in innovative technologies aimed at reducing costs, increasing energy density, and improving safety measures. This includes new materials such as composite copper foil and silicon-based anode materials, as well as advancements in battery structural systems like the larger 4680-cylinder batteries and solid-state batteries.

Next Story
Infrastructure Urban

Shivraj Singh Chouhan inaugurates ICAR-IIMR admin block in Ludhiana

Union Agriculture Minister Shri Shivraj Singh Chouhan recently inaugurated the administrative building at the Indian Council of Agricultural Research – Indian Institute of Maize Research (ICAR-IIMR) in Ludhiana, Punjab. During the visit, he interacted with maize stakeholders, farmers, rural development scheme beneficiaries, and women self-help group (SHG) members. He said that under the leadership of Prime Minister Narendra Modi, the government’s key goals include boosting foodgrain production, reducing input costs, and improving farmers’ incomes. He highlighted the importance of div..

Next Story
Technology

Google to Build Rs 10,000 Cr Data Centre in Visakhapatnam

In a major boost to India’s digital infrastructure, Google will establish a 1-GW hyperscale data centre and Artificial Intelligence (AI) hub in Visakhapatnam, Andhra Pradesh. The project, valued at Rs 100 billion, is expected to significantly contribute to the state’s economy and create more than 20,000 direct and indirect employment opportunities. Union Minister of State for External Affairs and Education, Dr Pemmasani Chandrasekhar, highlighted that this landmark investment by Google will help position Andhra Pradesh as a prominent digital hub under the “Swarandhra Pradesh” vision. ..

Next Story
Infrastructure Urban

TCIL honoured with HR Excellence Award 2025

Telecommunications Consultants India Limited (TCIL), a Miniratna Schedule ‘A’ PSU under the Department of Telecommunications, has been honoured with the HR Excellence Award at the Fortune Leadership Awards 2025, held at Radisson Blu Plaza, Delhi. The accolade acknowledges TCIL’s outstanding HR practices promoting employee development, innovation, and inclusivity. The award was presented by Dr. Dinesh Upadhyay, Former Member, Ministry of AYUSH, and Shri M. S. Nethrapal, IRS, and received by Shri P. Suresh Babu, CGM (HR), in the presence of distinguished leaders from various sectors. Bet..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?