OREANDA-NEWS. June 24, 2016. In China, the government is implementing action plans focused on curbing the serious air pollution resulting from the country’s economic development. In particular, restrictions are being imposed on the use of vehicles, the main source of PM2.5 emissions, and environmentally friendly cars that run on new forms of energy are being promoted.

Proliferation of EVs is the key to tackling air pollution in China

In China, the China Energy-saving and New Energy Vehicles Industry Development Program (2012?2020) was formulated in 2012 to limit air pollution caused by vehicle exhaust gas. Under the program, electric vehicles (EVs), plug-in hybrid vehicles (PHVs), and fuel cell vehicles (FCVs) are designated as “new energy cars” to be promoted with purchase subsidies.

As EVs and other new energy cars become more popular, rechargeable batteries, which are indispensable for EVs, are in short supply. To enhance the production efficiency of rechargeable batteries, local manufacturers are rushing to bring in high-performance manufacturing facilities from Japan, a country that leads the world in battery production. Japan-made cutting-edge facilities are also in demand due to their high safety, as the batteries are installed in vehicles used in everyday life.

SUMISHO METALEX CORPORATION, a Sumitomo Corporation Group company, responds to such needs by collaborating with Japanese manufacturers to support the sophistication of rechargeable battery production in China.

Forecast of automotive lithium-ion battery market in China (Unit: MWh)

Source: 2015 Comprehensive Survey on Battery-related Markets, Fuji Keizai

Serving as a coordinator between the Chinese market and Japanese manufacturers

Lithium-ion batteries, currently the mainstream product in the automotive rechargeable battery category, have the advantage of being small and lightweight yet at the same time having a large capacity. However, manufacturing lines for these batteries require a range of equipment made by different manufacturers. To introduce manufacturing lines from Japan, therefore, each component must be purchased separately from a different Japanese manufacturer and then connected and arranged together into a single line. This being a highly challenging task for a Chinese company, SUMISHO METALEX collaborates with multiple Japanese manufacturers to help Chinese companies establish optimal manufacturing lines, thereby reducing the load on them.

Going forward, SUMISHO METALEX will keep abreast of the latest technologies through close communications with Japanese equipment manufacturers so that it can continue to contribute to the safe and efficient production of rechargeable batteries in China.

Project configuration

Controlling risks unique to China by leveraging insight fostered locally

Although the expanding Chinese market is attractive for Japanese production equipment manufacturers, they cannot help being hesitant in moving forward due to risks posed by the unique business practices in the country. SUMISHO METALEX leverages its expertise fostered through extensive experience in China and its ongoing communications with local companies to appropriately control such risks, offering assistance to Japanese manufacturers seeking to advance into the Chinese market.

In Focus

Promoting sales of safe rechargeable batteries for residence by leveraging expertise on vehicle-use batteries

At the same time as supplying Japanese rechargeable battery production equipment to the Chinese market, SUMISHO METALEX proposes specific compact lithium-ion batteries suitable for residential use in Japan, with an eye on the future increase of zero energy homes*. The company is striving to create systems for leasing out such batteries to individual households and establishing new marketing channels. As with automotive batteries, batteries for home-use also need to meet high safety requirements. An internal safety committee is therefore in place to ensure safety as top priority.

* Zero energy homes: Homes that generate clean energy in amounts greater than the fossil fuels they consume