Rechargeable batteries are the industry’s overcapacity exacerbated the impact, analysts said, the world’s top two rechargeable battery supplier Panasonic and Samsung’s Samsung SDI will also further increase the battery’s price cuts, price war between the two manufacturers become more intense.
Tokyo Institute of Information Technology analyst Hideo Takeshita said the lithium-ion batteries this year’s price range will reach 19%, the highest in nearly five years. Japan’s Nomura Holdings Inc. analyst Shiro Mikoshiba more pessimistic view, the growing excess capacity rechargeable battery will allow up to 25% lower prices.
In the occupied 75% of global production capacity in Japan and South Korea, this phenomenon is more prominent. With the development of electric vehicles, lithium ion batteries will be sold the next six years to three times the current, so the battery manufacturers at the expense of profits to gain more market share.
Ichiyoshi Investment Management general manager Mitsushige Akino said that as prices fall, the battery manufacturer may be going through a difficult period. Only the market share from larger vendors will profit, others difficult to share a Fengeng.
Analysts Takeshita said that compared to competitors in Japan, Korea, life is very better than the manufacturer. Because they can buy cheaper from China of raw materials, production and more rapid, and the end of the won-yen exchange rate makes South Korean manufacturers more competitive.
Matsushita spokesman said: “price war between the South Korean manufacturer and us will continue. We will re-examine the production process to enhance cost competitiveness and win the price war.”
Tokyo Institute of Information Technology is expected that Samsung SDI is likely to exceed this year, Sanyo (Matsushita has been fully acquired) to become the largest manufacturer of lithium-ion battery.