"Still, with just 4 out of every 10 people currently owning handsets, and projections that China will have half a billion users by the end of 2007, China Mobile has plenty of room to keep growing."

Pls keep in mind, Li-ion rechargeable battery is the "heart" of cellular phone.

Based on last CC. CBAK charges around $2.25 per battery, and in general, each cellular phone needs two batteries.

So by the end of 2007, the market for cellular phone battery in CHINA alone is around $2.25B.

There is a lot of room for CBAK to gain market share.

BTW, sooner or later, $35 per cellular phone will help low income Chinese peasant buy one.


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By 2006, color display phone has dominated the market. Along with frequent appearance of camera phone and multimedia phone, functions of photo shooting, receiving and sending multimedia messages, and downloading high-capacity games are used more and more often. However, in facing with more powerful 3G mobile phones, battery capacity is obviously insufficient. Mobile phone battery tends to be lighter, thinner and higher capacity. Various new battery types such as fuel cell, Zinc-air and solar cell are under the R & D process.

Regarding LIP, there are around ten competent manufacturers, among which the major foreign manufacturers are Sony, Samsung and LG, while that of China are TCL and ATL.

As we all know, China has abundant and cheap labor force. Therefore, many Chinese manufacturers adopt low-cost competitive strategy by using labor-oriented semi-automatic production lines. The build cost of a single Li-ion full-automatic production line in Japan is several times or even dozens of times of that in China. Currently, some Chinese Li-ion manufacturers have caught up with the counterparts in Korea and Japan, for example, BYD and Lishen rank top five and top ten respectively on production capabilities worldwide.

From the year of 2003 to 2006, the CAGR of the global Li-ion battery production scale will reach 23.2%, and the CAGR of sales revenue will reach 12.25%. From the year of 2007 to 2010, Li-ion battery industry will gradually enter into a steady growing period. According to us, the CAGR of production scale and the CAGR of sales revenue will be 9.85% and 5.85% respectively by then. In a word, mobile phone battery market is not only a potential huge market, but an effective and sustainable market.

The sales revenue of Li-ion battery has exceeded that of Ni-Cd and NI-MH Battery. With the market shrinking of Ni-Cd and NI-MH Battery, the popularities of consumer electronic products and mobile electronic products such as mobile phone, digital camera, PDA and camcorder etc, as well as the huge application potentials of Li-ion battery, the market demand of Li-ion will increase with a relatively rapid growth rate in the future.

SOURCE: Research and Markets


NEW YORK (AFX) - China BAK Battery Inc., which makes laptop and electronic device batteries, said Wednesday it plans to build a new factory to develop and make a new line of advanced lithium ion batteries. The Shenzhen, China-based company said the factory will be owned and operated by its BAK International (Tianjin) Co. unit and located in the Tianjin Beichen Hi-Tech Industrial Park, where private companies can receive state incentives such as tax brea ks. China BAK plans to have product shipped from the factory by fiscal 2008 at the earliest. The new batteries are intended to supply higher energy density and power, longer life and shorter charge times compared with other lithium-based batteries. Initially, the company will focus development of the new batteries to be used for uninterrupted power supplies and in light electric vehicles such as electric bicycles. China BAK shares rose 2 cents to $6.05 in morning trading on the Nasdaq.

Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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