Supply of semigel VRLA batteries still on the rise

China makers continue to leverage semigel batteries' advantages in terms of performance and price over traditional AGM and high-end gel variants.

VRLA battery manufacturers in China still consider the development of gel types as the key goal to update the AGM-led mature line. Some have introduced OPzV and spiral-wound models and will venture into R&D this year. The latter includes Yingde Aokly Power Co. Ltd, which will work on units with tubular positive plates in coming months.

Most local suppliers, however, keep production focus on semigel kinds to reach a wider market. This is because gel variants remain an expensive option to conventional AGM batteries, with the price gap unchanged at about 40 percent. In contrast, semigel releases that offer better reliability compared with AGM counterparts are quoted 5 percent higher only.

At present, semigel units now account for more than 80 percent of local gel battery output. For suppliers such as Dongguan Shensong Power Co. Ltd and Anhui Xinneng Power Technology Co. Ltd, these constitute the entire gel-based selection. Both offer AGM units, which form about 70 percent of the former's yield and less than 20 percent of that of the second.

There are also initiatives to diversify to other types to benefit from demand in energy storage applications. Some domestic enterprises have launched lead carbon batteries, which combine the advantages of lead-acid types and supercapacitors. Such deep-cycle products can be fully recharged four to 10 times faster than regular lead-acid rivals. Narada is investing $376.9 million in production lines to realize annual capacity of 10 million kVAh.

VRLA batteries continue to dominate the secondary battery market with a share exceeding 60 percent. These are widely used in the transportation, telecom, electric power, medical, industrial, aviation and navigation sectors.

The key applications include automotive starting and EV power batteries, and backup and energy storage power, with the first two accounting for about 70 percent of China's total output. In the coming years, the main drivers will be EVs and solar/wind energy storage.

China is still the largest manufacturing hub for the line, churning out about 45 percent of global yield. The projected volume for 2018 has not changed at 271.83 million kVAh, with about 5 percent CAGR from 2014, according to the Lead-Acid Storage Battery Branch of the China Electrical Equipment Industrial Association or CEEIA. In 2014, the total reached 220.7 million kVAh.

The number of suppliers remains stable at close to 300. Those based in Zhejiang province are responsible for 29 percent of China's production, followed by companies in the provinces of Hebei and Jiangsu with 13 and 9 percent shares. There are also manufacturers in Anhui province.

See a comparison table of VRLA battery suppliers on GlobalSources.com