China has the world’s largest electric vehicle industry. Also, it has the highest number of lithium-processing plants in the world. These produce up to two-thirds of the world’s lithium-ion batteries. According to Bloomberg, China’s success in lithium-ion battery manufacturing comes from its huge domestic battery demand.
Every year, the Chinese government spends billions to subsidize the production of cheap Light Electronic Vehicles (LEVs). So, Chinese lithium battery manufacturers can find steady streams of customers. However, this trend is changing. By 2025, mainland Chinese lithium battery manufacturers will produce over 3,000 gigawatt-hours (GWh) of LEV batteries per year.
That is approximately six times more than what domestic electric mobility makers need. So, Chinese lithium battery manufacturers must look abroad for customers. But, there is good news! The demand for LEV batteries is very high in most first-world nations.
Hence, it’s time for Chinese lithium battery manufacturers to set up service centers in foreign locations. Here are five important reasons why:
Market Research
Selling lithium batteries in Western markets is not easy. This is because markets like Canada, Australia, Europe, and the US have heavy product safety regulations. There are several regulations that specifically apply to LEV batteries and components. Setting up an overseas service center is the perfect way to understand the nuances of these foreign markets.
Chinese lithium battery manufacturers can better grasp Western market practices via such experiences. How to present safety test reports to customers? How to perform ICT testing or aging testing in ways that satisfy foreign regulators? Setting up overseas service centers is the best way to learn such critical details.
Better Logistics
Leading Chinese lithium battery manufacturers can set up service centers in business-friendly locations. This will simplify their logistical operations. For example, let’s say a Chinese lithium battery manufacturer sells batteries in Europe. Setting up a technical service center in a popular European country will mean –
- The company gets to serve multiple foreign markets.
- Instead of sending batteries back to China, the manufacturers can provide zero kilometers of after-sales service to local customers.
- The company can even use its service center to store batteries and components before/after shipping.
International logistical operations become much more convenient and time-efficient if you have service centers in the right foreign locations.
Attractive Proposition for Foreign Clients
Chinese lithium battery manufacturers that have offshore technical service centers are likelier to attract foreign clients.
Easier Product Maintenance
What does an offshore service center require to be successful? A warehouse, a laboratory, and an assembly/inspection line – that’s all. With such facilities, lithium battery manufacturers can perform all types of maintenance and repair activities. These include urgent repairs too.
Save Time & Build for the Future
The global energy storage market is evolving rapidly. If lithium battery manufacturers want to prepare for the needs of future customers, they must establish direct contact with them. That means providing face-to-face services to foreign customers. Setting up overseas repair/service centers is the most efficient way of achieving this goal.
So, it’s clear that the future of Chinese lithium battery manufacturers lies offshore! Hence, at Tritek Limited we’re focusing on opening up multiple service centers all across the globe. Being one of the world’s leading LEV battery manufacturers, we believe it’s our duty to serve customers across the world.
