Major Chinese lead-acid battery manufacturers could be waiting for European or American companies to buy them out, says the general manager of Fiamm Asia-Pacific.
Lorenzo Mancini says the Chinese government is no longer interested in expanding the country’s lead-acid battery industry for a number of reasons, including the environmental concerns.
“The Chinese government might want the industry to switch its focus to lithium-ion or other chemistries, whatever is strategic for the Chinese government, because it’s one of the segments where they can become market leader,” said Mancini.
“Whatever they do there will always be some US or European manufacturer that is stronger in lead-acid, like EnerSys, for example. But with lithium-ion they can become world-class champions.
“I think the major Chinese battery manufacturers would be happy to be bought out by European or American investors, who are waiting on the sidelines for the market to deflate, when they can make their move.”
One indication that the government has lost interest in the industry is the new 4% consumption tax, introduced in January this year, which is only applicable to lead-acid batteries.
Stricter environmental regulations and distance to market also means higher costs and less profit for the industry, says Mancini.
