Beijing Easpring Material Technology [300073:CH] released a statement outlining its plan to increase procurement of raw materials to meet an anticipated jump in demand, as reported by Yicai Global on November 8. This spike in demand is expected to arise from Easpring customer and Chinese electric car producer, BYD [1211:HK].
Easpring expects its sales to BYD to reach RMB200m, which is a 500% increase from it’s initial estimates of RMB40m. This increase directly stems from two catalysts. First, there is a rising popularity of electric cars in the global market as consumers view them as cheaper to run, easier to maintain, and having a lower environmental footprint. Second, a push from several major states are banning the production of combustion engine vehicles over the coming decade to slow down global warming and stop climate change. Electric vehicles have started to take over market share from traditional motor companies in China and globally, which are predominantly powered by lithium cells, creating more market opportunity for such cells.