Tin consumption will increase with the growth of battery production

The development of the new battery industry has been gaining momentum in recent years, putting pressure on lead acid battery manufacturers in China and elsewhere in the world.

“The market for new energy batteries has great potential and promise,” said Zhou Zhaoxu, deputy director of Chaowei Power Co, a leading manufacturer in China, during the China Metals Summit. However, the direction of new batteries is not as well developed as lead-acid batteries in terms of recycling and safety, Zhou added at the summit. "The lead acid battery remains our core business and will not be replaced with lithium and other new batteries in the short term," Zhou said.

The lead-acid battery sector is set to become the fourth largest consumer of tin in China, analysts at the Shanghai Metals Market suggest. Currently, tin consumption in the lead-acid battery sector accounts for 4 percent of the total consumption, but the share will continue to grow. As China's lead acid battery production is expected to grow by about 6.6 percent in 2015.

The use of tin for plating and brazing, traditionally the main consumer of tin, has tended to slow down in recent years. The lead acid battery sector now consumes about 6,000-7,000 tons of tin in China and appears to be emerging as another important factor in the tin market. Tin consumption is expected to increase by 4 percent in 2014 in the Chinese domestic market.