Is the production capacity in New energy sector sufficient?

From a global perspective, the production capacity in new energy sector is far from sufficient. In the "Global EV Outlook 2023," the International Energy Agency (IEA) projected that by 2030, the global demand for new energy vehicles will reach 45 million, more than triple the global sales volume in 2023 and 4.5 times that of 2022.

Will a shortage of EV batteries be a reality in 2022?

An astounding 60% of lithium, 30% of cobalt, and 10% of nickel demands were directed to EV batteries in 2022, marking a substantial shift from five years earlier when these shares were 15 percent, 10 percent and 2 percent respectively. In this context, a shortage of high-quality supply is more likely to be a reality than overcapacity in the future.

Is overcapacity an economic issue?

However, this logic is untenable considering the U.S.'s significant export of products like chips and agricultural goods, said Lin. "Overcapacity may look like an economic issue, but the truth is, the U.S. is using it to hit Chinese industries and give itself an unfair advantage in market competition.

Why are lithium-ion batteries so popular in 2022?

It is also worth noting that key minerals are vital in lithium-ion battery manufacturing. An astounding 60% of lithium, 30% of cobalt, and 10% of nickel demands were directed to EV batteries in 2022, marking a substantial shift from five years earlier when these shares were 15 percent, 10 percent and 2 percent respectively.

Is 'overcapacity' a misconception?

First of all, the misconception of "overcapacity" is contrary to economic principles and common sense. The higher volume of exports is not overcapacity, Jin Xiandong, an official of the National Development and Reform Commission, said at a press conference on Wednesday.

What does 'overcapacity' mean?

"Defining 'overcapacity' as any production exceeding domestic demand is equating product exports with overcapacity and contradicts economic logic," it said.