Bloomberg Intelligence reports that companies in China have plans to create battery factories with a combined capacity of 120GWh in the next four years. The Government aims to help the industry mature by consolidating battery manufacturers.
The surge in battery capacity complements China's plans to scale electric vehicles, creating domestic markets for both as well as reducing pollution.
Meanwhile, Tesla plans to open a 35GWh battery factory in the US next year, while Swedish company Northwold is building a 32GWh one, and German company Daimler is investing EUR 500,000,000 into another, also due for 2018.
According to Bloomberg analyst Nikolas Soulopoulos, battery manufacturing capacity is set to double by 2021, lowering costs by up to 43% - enabling EVs to compete with fuel engine cars on running costs.