Typically, a battery's energy storage capacity decreases with each charge-discharge cycle, leading to insufficient driving range for users. On March 22, 2017, TSLA, a leader in the electric vehicle industry, announced a breakthrough in lithium-ion batteries. TSLA's Chief Battery Scientist, Kurt Kelty, and technology development partner, Jeff Dahn from Dalhousie University in Canada, presented at an international battery symposium and exhibition, stating that the TSLA Model 3's battery pack capacity only decreased by 5% after 480,000 kilometers. Improving a certain chemical component in NMC ternary lithium batteries limits harmful gases produced during high-voltage operation, and this improved battery cell maintains excellent performance after more than 1200 cycles. Based on 20,000 kilometers per year, a typical car would need to be driven continuously for 80 years before a TSLA car is scrapped. This new technology has already been commercialized and is being used in TSLA products, with the Model 3 sedan expected to launch this July.
This is truly exciting news for everyone in the battery industry. The future of gasoline-powered cars versus electric cars is self-evident. With the issues of extended driving range and energy decay resolved, the market size of electric vehicles is only a matter of time.
The production and application market of electric vehicles is one of the manifestations of the successful commercialization and rapid development of the energy storage industry. According to incomplete statistics, my country's production and sales of low-speed electric vehicles reached approximately 700,000 units in 2015 and 1.2 million units in 2016. Judging from the development path of electric vehicles and the level of battery technology, low-speed electric vehicles will be the mainstream of my country's electric vehicle development in the next decade and an important supplement to the new energy vehicle industry in the next ten years.
Technological innovations in the battery field have also demonstrated various possibilities for the energy storage industry. Last year, Huawei's Watt Lab at the Central Research Institute announced a major research breakthrough in lithium batteries at the 57th Japan Battery Conference, launching the industry's first high-temperature, long-life graphene-based lithium battery. Experimental results show that the new high-temperature resistant technology based on graphene can increase the upper limit of lithium battery operating temperature by 10°C and double the lifespan of ordinary lithium batteries. According to data recently released by the National Bureau of Statistics, from January to February 2017, my country's cumulative lithium battery production reached 1,144.85 million units, with an average monthly production of 572.42 million units.
Through continuous technological innovation, battery development has facilitated the safe and fast charging capabilities of electric vehicles, rapidly promoting their market penetration and making the true integration of the new energy vehicle and energy storage industries within reach. Cao Cheng, head of the 2017 2nd Asia-Pacific Battery Exhibition, to be held from August 16-18, 2017 at the Guangzhou International Convention and Exhibition Center, explained that my country is a superpower in the promotion and application of new energy. The relevant support policies successively introduced by the government in recent years demonstrate the government's strong determination to develop new energy industries such as electric vehicles and energy storage. The Asia-Pacific Battery Exhibition, with its international and high-end positioning, aligns with the government's plans for the future development of the new energy industry and has received key government support, with full subsidies for participating companies. Exhibitor data may reflect the current state of the battery industry. It is reported that compared to last year, the number of companies active at the exhibition this year has increased by 500%. Industry giants such as Lishen Battery, Wotema Battery, Haisida Shares, Shuangdeng Group, and Jingbin Electronics, as well as power lithium battery and BMS companies, Hongbao Technology, Jinming Technology, and Han's Laser, and battery equipment companies, and battery material companies such as Kaipurite and Haili Shares, have all joined the event. By the time the event opens, the exhibition area for battery and BMS (Battery Management System) companies alone will reach 15,000 square meters. On the buyer side, it is estimated that 35,000 visitors from over 40 countries and regions worldwide will attend, with foreign buyers accounting for approximately 15%. The concurrent "2017 Asia Power Lithium Battery and Energy Storage Technology Summit" will focus on three core topics: "Power Lithium Battery Technology and Intelligent Manufacturing," "Power Lithium Battery Applications and BMS Battery Management Systems," and "Energy Storage Systems, Technology, and Engineering Applications." This dual-engine model of "high-end product display + technical forum" will effectively promote the healthy and orderly development of the domestic battery industry. It is believed that battery companies with genuine technological strength will not miss this opportunity to announce their research results to the world at an international battery conference.
Over the past five years, the global energy storage industry has experienced a compound annual growth rate of 193%, and it is projected that my country's energy storage market will reach $100 billion in the next 10 years. Further reductions in energy storage costs, the improvement of peak-valley electricity pricing systems, the establishment of compensation mechanisms such as demand-side management, the emergence of various value-added services on the user side of the electricity market, and the continuous development and deepening application of energy storage sub-markets will make the user-side energy storage market a pioneer in the commercial application of energy storage in my country. According to SPIR (Start-up Research), energy storage has become an important choice for large companies facing saturation of traditional businesses or implementing transformation and development, with a market growth potential exceeding 100 billion yuan in the next five years. A number of battery companies, including Narada Power, Shanshan, Guoxuan High-Tech, Xiongtou Power, and Mengshi Technology, are accelerating their deployment in the energy storage field.
Currently, energy storage has been included in my country's 13th Five-Year Plan as one of the top 100 projects, marking its first formal inclusion in the national development plan. Simultaneously, related policies, including the 13th Five-Year Plan for the energy storage industry, have begun to be drafted and are expected to be released subsequently. Furthermore, the National Development and Reform Commission and the National Energy Administration jointly issued the "Energy Technology Revolution Innovation Action Plan (2016-2030)" and the "Key Innovation Action Roadmap for Energy Technology Revolution," requiring research on high-temperature thermal storage technology for efficient utilization of solar thermal energy, and large-capacity thermal (cold) storage technology for distributed energy systems. Research is also required on physical energy storage technologies for grid peak shaving and efficiency improvement, regional energy supply applications, renewable energy grid integration, distributed and microgrids, and electric vehicle applications. The goal is to master the key core technologies in all aspects of energy storage, complete demonstration verification, achieve international leading levels in overall technology, and lead the international development of energy storage technology and industry.
my country's energy storage market has reached a turning point in its commercial development. Currently, the high costs of energy storage and the technological costs in the new energy field are still borne by the government. The next stage goal is to completely shift the cost to the market, with users paying for it. Looking at the current active efforts of major capital and companies in the battery field, the overall situation of the secondary energy market based on electricity is trending optimistically.
