|Key characteristics that make lithium-ion batteries superior to other products include ease of access, high energy density, low discharge rates, and a long life cycle. For a long time, many developed countries have listed electric vehicles as the main target to conquer, and have further increased the research and development of lithium-ion batteries.
As power battery production and research and development require higher technology, capital, and experience, its supply is increasingly in the hands of a few enterprises, and the market concentration is increasing.
With the recovery of the new energy vehicle market, the global power lithium battery shipments continue to grow, and the future shipments will maintain a growth rate of more than 15%, and the global lithium-ion battery market is expanding.
Supply: The Concentration Of Supply Is Increasing
Lithium-ion batteries are a core component of electric vehicles and a market leader in applications ranging from mobile devices to power grid storage. Key characteristics that make lithium-ion batteries superior to other products include ease of access, high energy density, low discharge rates, and a long life cycle.
Electric vehicles have long been a major goal of many developed countries, and the United States supports national laboratories and companies working on lithium-ion batteries for vehicles. The European Union has made plans for the development of high-specific energy batteries. Japan has a monopoly in the field of lithium-ion batteries. Sony, Sanyo Electric, Panasonic Battery, NEC, and other famous companies have built large-scale lithium-ion battery production plants.
In 2019, the installed capacity of power batteries was about 115.21GWh, up 22% year on year. In the first three quarters of 2020, the installed power battery volume was about 77.78GWh, down 1.7% year on year. As power battery production and research and development require higher technology, capital, and experience, its supply is increasingly in the hands of a few enterprises, and the market concentration is increasing.
The total installed capacity of the top 10 power companies in 2019 is about 102.4GWh, accounting for 89% of the global installed capacity of power batteries. In the first three quarters of 2020, the total installed capacity of the top ten power enterprises is about 72.01GWh, accounting for 93% of the global installed capacity of power batteries, and the leading enterprises have increasingly obvious advantages.
Demand: The Future Shipments To Maintain More Than 15% Growth
Lithium-ion batteries are the core components of new energy vehicles. The growing global sales of new energy vehicles promote the growth of the power battery market scale, but the growth rate is gradually slowing down. About 2.21 million new energy vehicles were sold globally in 2019, up 15% year on year. As the sales volume of new energy vehicles in European countries has risen
sharply, the foreign lithium battery terminal market has gradually released the demand. About 1.751 million new energy vehicles were sold globally in the first three quarters of 2020, up 11.9% year on year.
Under the background that China, Europe, Japan, and South Korea, the United States, and other major countries are vigorously developing global new energy vehicles, the global power lithium battery market has maintained a rapid growth trend in recent years. According to statistics, the global shipment of power lithium batteries reached 163.2GWh in 2019, with a year-on-year growth of 52.5%.
In the next few years, as China’s new energy vehicles the implementation of the system of double integral, the European Union countries and the UK to accelerate the electric car, powerful lithium-ion batteries in the new energy vehicles will remain the trend of high growth, driven by the terminal predicts 2025, the global power lithium battery shipments will reach 669 GWH, compound annual growth rate of more than 15% over the next five years. With the recovery of the new energy vehicle market, the global power lithium battery shipments continue to grow, and the global market size of lithium-ion batteries continues to expand. It is estimated that the global market size of lithium-ion batteries will exceed $100 billion by 2025.
Current Situation Of Lithium Battery Industry In China
The Rapid Growth Of China Battery Lithium Battery Industry Market Concentration Has Further Improved
According to the data of the China Electronic Information Industry Development Institute, the production of lithium batteries in China has been growing continuously from 2015 to 2019. In recent years, the demand for lithium batteries for 3C products has been increasing steadily. As the market size of new energy vehicles has gradually expanded and the demand for energy storage batteries has expanded, the production scale of lithium batteries in China has been expanding year by year.
In 2019, China produced 15.722 billion lithium-ion batteries, up 12.40 percent year on year. From January to March 2020, China produced 2.717 billion lithium-ion batteries. China’s total shipments of lithium batteries increased year by year, mainly benefiting from the growth of shipments of new energy vehicles and power batteries. Data showed that total shipments of lithium-ion batteries in China reached 102GWh in 2018, up 27% year-on-year, and shipments of lithium-ion batteries in China reached 131.6 GWh in 2019.
Lithium-ion batteries are widely used in mobile phones, notebook computers, electric bicycles, electric vehicles, power tools, digital cameras, and many other downstream fields in China, which can be classified into three main categories: energy storage, consumption, and power lithium batteries. With the expansion of the scale of new energy vehicles in China, it is expected that the demand proportion of lithium-ion batteries for electric vehicles in China will further increase in the future.
Data show that China’s shipments of lithium-ion batteries reached 131.6 GWh in 2019, among which the shipments of lithium-ion batteries for energy storage reached 3.8GWh in 2019, accounting for 2.89% of lithium-ion batteries shipments. The shipment of power lithium battery was 71GWh, accounting for 53.95% of the shipment of the lithium-ion batteries; The shipments of consumer lithium batteries were 56.8GWh, accounting for 43.16% of the shipments of lithium ions.
In recent years, the scale of China’s lithium battery industry shows a growing trend, and the 3C market, electric bicycles, new energy vehicles, and lithium batteries for energy storage are the most important areas of demand for lithium batteries. The scale of China’s lithium battery industry reached 172.7 billion yuan in 2018.
According to the development trend of the lithium battery industry from 2014 to 2018 and combined with the development situation of new energy vehicles in 2019, the scale of the lithium battery industry in China will exceed 200 billion yuan in 2019, estimated by Foresight Industry Research Institute. In the next few years, with the traditional fuel vehicle enterprises increasing the layout of new energy vehicles, the global power lithium battery market demand will maintain a high growth trend.
At the same time, affected by the adjustment of the new energy subsidy policy, the cost pressure of power lithium battery enterprises is gradually increasing. Power lithium battery enterprises need to expand the scale effect and reduce the production cost of the unit products to cope with the rapid development of the new energy industry.
As a leading battery company in China, BSLBATT will continue to adhere to the concept of “best solution lithium battery”, continue to develop and manufacture cost-effective lithium batteries with good performance, contribute to the development of the lithium battery industry, and accelerate the pace of replacing the lead-acid battery with a lithium battery.
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