At the end of November, the Ministry issued the “automotive battery industry standard conditions (2017)” (Draft) (hereinafter referred to as the draft) show that the lithium ion power battery monomer enterprises annual production capacity from the previous “not less than 200 million watts” to “not less than 8 billion watts, about 40 times higher.

In this regard, China Xuan Tech (002074, shares) President Fang Jianhua on the “Securities Daily” reporters, 8 billion kwh capacity constraints is the media and industry over interpretation. The capacity required and recommended directory and enterprises can get subsidies are not related. At the same time, he said, the government to raise the threshold of the intent is clear, namely to promote power battery industry mergers and elimination, improve the power battery industry competition environment. Fang Jianhua expected, the next 90% will be out of battery enterprises. In addition, the car brand director Hu Ming said that the industry should also regulate conditions of energy consumption, safety and environmental protection and other public index up constraint enterprises, not only from the enterprise production scale up limit. In the face of the policy adjustment, the reporter observed, on the one hand the industry leading enterprises competing to increase investment, expand production capacity, and more SMEs are slow to follow up the pace, to wait and see.