In case you hadn’t heard this – the Chinese government has closed most lead-acid battery manufacturing plants in the last month in response to extreme pollution. This is part of the government’s “twelve-five plan” for environmental improvement.
The plants we have heard of being closed are owned by Narada, Kstar, Chilwee, Heyuan Sunnyway and Zhejian Haijiu Battery, although we expect that almost all manufacturers will be affected. Some will be able to meet the new environmental requirements, but many will just close permanently.
What will be the effect to our industry? Lead prices have already dropped. Supply of batteries in your markets will likely be tight in three months, as Chinese shipments get delayed or cancelled. The overall quality of batteries will improve, as the lower quality producers seem the least likely to meet the new environmental standards. And prices of batteries will probably increase in response to the shortage of producers.
We only offer Deka and Surrette batteries and both manufacturers have excellent environmental records. Deka’s recycling program is used as an example in the industry and can be seen on the Discovery Channel. All of our customers should feel confident in using Deka batteries, made in the USA.