Due to new governmental regulations in China in reference to lead, a large number of Sealed Lead Acid battery manufacturing plants have been closed down. With the majority of SLA batteries being supplied to the world by China, there is now a Sealed Lead Acid Battery shortage due to lack of production.
It is estimated that one third of all lead acid batteries are manufactured in China but recent pressure over the environmental damage certain production facilities are causing means authorities have ordered 70% of factories to close.
China’s Lead Acid Battery Problem
China has always had a more relaxed approach to polluting the environment. Currently 32% of lead used to produce a battery can be ‘lost to the environment’ while the US requirement is no more than 1%.
The situation had reached a stage whereby even the state controlled media was reporting that between 2009 and mid 2011 there had been 4,000 cases of lead poisoning and that one factory alone was responsible for the illnesses in 300 adults and neary 100 children.
Lead Acid Battery Prices
The effect of these changes is expected to be felt worldwide as some 2,000 factories are reduced to 400 production facilities, theoretically dropping output by up to 75%. However the Chinese government has stated that the closures are not permanent and many locations are expected to restart production once they can show improvements.
Furthermore some commentators have said the shortage may not be as high as rumored. In a recent Financial Times Article Gavin Hu, deputy general manager of Jiangsu Xinri E-Vehicle, China’s largest vendor of electric bicycles, said the closures were mostly limited to Zhejiang and to smaller producers.
Whatever happens you can be assured BatteryGuy will be working night and day to bring you the best quality at the best prices.
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