Demand for electric vehicle batteries has been slowing down since the beginning of the year, but battery makers are still hiking capacity, resulting in an oversupply, said Yang Hongxin, chief executive of battery maker SVOLT Energy Technology, in an interview.
China installed 219.2 GWh of NEV batteries in the first eight months, around half of the 419.7 GWh produced during the period, leaving an oversupply of 200 GWh of batteries, according to data from the China Automotive Power Battery Industry Innovation Alliance.
The oversupply came even after battery makers were not operating at full capacity, the alliance said. China’s top battery maker CATL was only operating at 60.5% capacity in the first six months, it added.
While there is overcapacity of older versions of batteries, the latest batteries such as 800-volt ones are in short supply, Yang said.
An oversupply of conventional batteries is likely to lead to a reshuffle in the industry which will consolidate the position of leading companies, China Merchants Securities said in a recent report.