No results found. Please try again.


China’s Leading Position in EV Battery Equipment Industry

China’s Leading Position in EV Battery Equipment Industry

Electric vehicle (EV) battery equipment is one of the fastest growing equipment industries in the last five years. China is the world’s largest producer of EV battery equipment, with Wuxi Lead and Shenzhen Yinghe as the top two players. In this article, we will explore why the EV battery equipment industry is booming and why Chinese makers are taking the lead.

Why is EV Battery Equipment Industry Booming?

Global EV sales have seen rapid growth in the past few years and are expected to continue the uptrend in 2021E-25E with a compound annual growth rate (CAGR) of over 25%1. The EV penetration rate is forecast to increase sharply in the next decade in major markets such as Europe, China and the U.S., boosting demand for EV batteries as well as installations of EV battery equipment

Why are Chinese Makers Leading?

A typical EV battery production line consists of three parts as shown in Exhibit 1: front-end equipment of mixing, coating, rolling and slitting machines, middle-end of winding/stacking, assembling, tab welding, electrolyte filling and sealing machines, and back-end of formation, aging, grading and testing systems. Front-end equipment is similar to commodity with less entry moat in technology, while middle-end and back-end equipment is involved with knowhow to improve production efficiency, yield and accuracy. First-movers have competitive advantages to accumulate orders and capacities, generate knowledge from back and forth in production, and get more orders to build up capacities. What really matters is cost, or EV battery capital expenditure, which plays a vital role in battery makers’ cost control. Sometimes, cost matters even more than technology innovation in massive production.

The cost breakdown of a leading battery equipment maker Wuxi Lead shows that raw materials accounted for 85% of its whole production cost and labor accounted for 9%2(FY2019). Both the cost of production and labor is low in China, which provides Chinese manufacturers with competitive advantages. In China, metal products such as printed circuit board (PCB), capacitance and sensor are plentiful and cheap raw materials to equipment makers. The average manufacturing labor cost is only US$12k per year and the annual compensation to engineers is also as low as US$28k3 for Wuxi Lead.

In addition, EV battery industry clusters in China also help enhance Chinese equipment makers’ leading position. Chinese companies including CATL, Gotion, EVE energy and BYD accounted for over 75% of global EV battery capacities in 2019 (Exhibit 2). Compared to Korean or Japanese peers, Chinese battery equipment makers are much closer to downstream demand, which means they can promptly respond and upgrade products, improve production yield, and reduce cost thanks to economies of scale and shorter logistics distance.

In conclusion, the global EV sales growth prospect supports the long-term boom of EV battery and equipment industries. Chinese EV battery equipment makers are key beneficiaries as a result. They have built up their competitiveness thanks to low cost of raw materials, manufacturing labor and engineers, coupled with efficient collaboration with Chinese EV battery makers.

Staying Ahead with Mirae Asset’s Latest Insights

Mirae Asset Global Investments adheres to a strictPrivacy Policygoverning the handling of your information and subscribers can opt-out per their preference.

1 Source: BofA research, September, 2020
2 Source: Wuxi Lead annual report 2019, April, 2020
3 Source: Wuxi Lead annual report 2019, April, 2020

Disclaimer & Information for Investors

No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only.  It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.

The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements.  Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.

Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.

Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.

Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KIIDs”) are available for each share class of each of the sub-funds of the Company.

The Company’s Prospectus and the KIIDs can be obtained from . The Prospectus is available in English, French, German, and Danish, while the KIIDs are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KIID before making any final investment decisions.

A summary of investor rights is available in English from

The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.

Hong Kong: This document is intended for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.

Copyright 2021. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.


  • Unit 1101, 11/F, Lee Garden Three, 1 Sunning Road, Hong Kong


  • 2295 1500

This website is intended for Hong Kong investors only. Your use of this website means you agree to our Terms of use. This website is strictly for information purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. Further, this website should not be regarded by investors as a substitute for independent professional advice or the exercise of their own judgement. The contents of this website is prepared and maintained by Mirae Asset Global Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.