China's production and newly installed capacity for power batteries continued to rise in May, driven by rapid growth in the country's new energy vehicle (NEV) industry.

May power battery production rose by 165.8pc from a year earlier to 13.8GWh, with installed volume reaching 9.8GWh, up by 178.2pc, according to the China Automotive Manufacturers Association (CAAM).

Total output of power batteries rose to 59.5GWh in January-May 2021, up by 227.3pc on the previous year. Installed volume during January-May increased by 223.9pc to 41.4GWh.

China's largest battery producer CATL, second-largest battery and NEV manufacturer BYD and South Korean battery producer LG Chem were the top three firms in terms of installed volumes during January-May at 20.32GWh, 5.91GWh and 3.92GWh respectively, accounting for 49.1pc, 14.3pc and 9.5pc of the total.

The domestic NEV industry has maintained rapid growth since the second half of 2020 when the country eased its Covid-19 lockdown measures. May output rose by 150pc from a year earlier to 217,000 units, with sales up by 160pc to 217,000. Total NEV production during January-May reached 967,000, up by 220pc from a year earlier, with sales up by the same margin to 938,000.

China's NEV sales are forecast by CAAM to hit 2.4mn units, up by 70pc compared with 2020, in a potential boost for future battery production this year.