The battery packs segment in mainland China is projected to increase at a compounded annual growth rate of up to 15 percent between 2007 and 2009. More than 4 billion units of battery packs were produced in mainland China in 2005, including the output of Taiwan and Hong Kong companies that have manufacturing facilities in the mainland.
The industries in mainland China and Taiwan combined are composed of 767 makers. Featured in this report are three of mainland China's biggest battery pack manufacturers, namely, DLG Battery (Shanghai) Co. Ltd, Scud (Fujian) Electronics Co. Ltd and Shenzhen BAK Battery Co. Ltd. Moreover, four of the five top makers in Taiwan are also in this report. These are Simplo Technology Co. Ltd, Cheng Uei Precision Ind. Co. Ltd (Foxlink), Sole Energy Tech Corp and Celxpert Energy Corp.
This report covers 55 companies: 40 from mainland China, eight from Taiwan and seven from Hong Kong. Observations made and statistics provided in this report are based on inputs from these companies.
Products and Prices
• This report encompasses battery packs that are suited to mobile phones, notebook PCs, digital cameras, portable DVD players, power tools, household appliances, lighting devices, toys, and medical and military equipment; Li-ion battery packs dominate production
• Makers continue to develop NiCd batteries despite the implementation of the RoHS in June 2006, which lists nickel as one of the hazardous materials. However, some companies opt to focus on other chemistries
• To keep costs at a minimum while putting off another wave of price hikes such as those in 2004 and 2005, most makers produce their own battery cans, conductive carbon, glue and other components in-house
On Manufacturing Capability
• The majority of mainland China makers are located in the Pearl River Delta
• Only a few makers focus solely on battery pack production as most makers also manufacture batteries
• On average, battery packs account for 10 percent to 30 percent of the total output of these makers The majority of the makers covered in this report are running at 70 percent to 90 percent of their capacity
On NiMH Battery Packs
• Mainland China can manufacture the complete product range for extensive applications — from consumer electronics to industrial equipment
• The major product trends are increased power and faster recharging time
• More new products that provide stand-alone and on-the-go recharging power will be released
Industry Overview
Battery packs production in mainland China was estimated to about 4 billion units in 2005, including the output of Taiwan and Hong Kong companies that have manufacturing facilities in the mainland. Combined sales value last year was about US$4.8 billion.
The suppliers in this report collectively produced about 608.5 million units in the same year, accounting for 46.8 percent of Greater China's total output. The China Industrial Association of Power Sources (CIAPS) estimates that in the next two years, production will grow between 10 percent and 15 percent.
The Industrial Technology Intelligence Services (ITIS) reports that sales of all types of rechargeable batteries by Taiwan-based companies rose slightly between January and October of 2005. An 18.44 percent decrease was noted in Taiwan's overall battery production, from 97.9 million units between January and October of 2004, to about 69 million units in the same period of 2005, owing largely to the migration of Taiwan companies into mainland China. Most Taiwan companies set up manufacturing sites in mainland China to handle the massive demand.
It is estimated that about 40 percent of the total battery pack output of mainland China makers is exported. The region's overall export volume reached 576 million units in 2005. Of the total, Li-ion battery packs take up 30 percent; NiMH battery packs, 40 percent; and NiCd battery packs, between 50 percent and 60 percent.
For Taiwan companies, exports of all rechargeable battery types take up about 55 percent of the total output in 2005, with Lithium batteries taking up the biggest cut at 77.2 percent — an increase of about 24.5 percent year-on-year. The total export value for Taiwan's rechargeable batteries totaled US$78.9 million in 2005, increasing 15 percent year-on-year. Exports for Lithium batteries was US$60.9 million; US$12.2 million for NiCd; and US$5.8 million for NiMH, according to ITIS.
The main export destinations for mainland China and Taiwan makers are the United States, Europe and East Asia, with the United States and Europe absorbing a combined 50 percent. Some makers are considering the Middle East as an emerging market. As for Taiwan-made Lithium batteries, Asia absorbs 78.5 percent; North America, 10.5 percent; Europe, 10.1 percent; and other regions, the remaining 0.75 percent.
Supplier Profile
BetterPower Battery Co. Ltd
Established in 2002, BetterPower Battery Co. Ltd specializes in developing and manufacturing high performance NiMH batteries, battery packs and chargers. The company categorizes its products into the consumer battery series, high-capacity series, low-cost NiMH battery pack series, high-power series, high/low temperature series and rapid-charge series. It claims that its NiMH batteries and battery packs have the highest capacity in all of mainland China.
BetterPower's sales have increased by 150 percent since 2003 — a trend expected to continue through 2006. Battery pack annual sales hit US$12.5 million in 2005, and are projected to reach US$30 million in 2006. To achieve this, BetterPower is expanding its factory space and investing about US$850,000 in Japan-made assembly and testing equipment.
BetterPower provides OEM services, mostly to top brands from Germany, the United States, South Korea and Japan. It exports about 75 percent of its output mainly to Europe, North America, Southeast Asia and Australia. Aiming to increase its export ratio to 80 percent in 2006, the company participates in trade shows, such as CeBIT, Korea Electronics Show, Consumer Electronics Show, Hong Kong Electronics Fair, and China Sourcing Fair, to gain wider market exposure. It will set up a distribution office in Germany in February 2007.
The company was cited as a High Tech Enterprise by the Shenzhen provincial government in 2004.
Main applications for its battery packs are emergency lights, remotecontrolled toys, home appliances, communication equipment and power tools.
Manufacturing Capability
BetterPower produced 600,000 NiMH battery packs monthly in 2005. Its average monthly output is expected to exceed 1 million units in 2006 as its export ratio increases and export production is intensified.
The Global Sources team toured BetterPower's factory located at Longhua, Bao'an, about 30-minute drive from the Shenzhen railway station. The first stop was the IQC room at the second floor, where QC workers were recording the results of various tests. Beside this room is the raw-material section, where standard materials undergo QC. According to the tour guide, key materials, such as separators and electrodes, are inspected in the technical department.
All this column of information contained in China Sourcing Reports is the result of original, independent and impartial research conducted by Global Sources analysts.
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