Lithium battery industry market status and development prospect analysis 2023

In recent years, the rapid development of the lithium battery industry driven by multiple favourable factors such as the explosion of demand for new energy vehicles and national environmental protection policies. However, affected by the epidemic and rising raw material prices, the profitability of the lithium battery industry has declined.

Industry sources said that under the regulation of supply and demand in the market, the industry's upstream raw material lithium carbonate prices have been fluctuating between 30,000 and 200,000 yuan per ton. But this year, the price of lithium carbonate once soared to about 500,000 yuan per ton, which greatly exceeded the cost of lithium battery companies to bear the range.

Lithium battery is a lithium metal or lithium alloy as the anode material, the use of non-water electrolyte solution battery. Due to the chemical properties of lithium metal is very active, making the processing, preservation and use of lithium metal, the environmental requirements are very high, so lithium batteries have not been used for a long time, with the development of microelectronics technology at the end of the twentieth century, the increasing number of miniaturized devices, the power supply has put forward high requirements, lithium batteries then entered the practical stage of large-scale.

Lithium batteries have the advantages of high voltage, small size, light weight, high specific energy, no memory effect, no pollution, small self-discharge, long life, its application has penetrated into a number of areas of civilian as well as military applications, including cell phones, notebook computers, video cameras, digital cameras and other portable electronic applications emphasizing thin, short, multi-functional and rapidly popularized.

From the perspective of China's national conditions, the proportion of national economic pillar industries with independent intellectual property rights is very low. In the development of the national economy, there is still a lack of strategic significance with independent intellectual property rights and core technology industries, which makes the development of China's industrialization still gives the impression of "the world's processing plants". Accelerate the development of lithium power battery industrialization, take the road of independent intellectual property rights development, is conducive to building the pillar industries of national economic development, thereby improving China's comprehensive competitiveness.

Analysis of the current market situation of lithium battery industry

On February 23, 2023, the Department of Electronic Information of the State Ministry of Industry and Information Technology (MIIT) released the "Operation of the National Lithium-ion Battery Industry in 2022". According to the data released by the Ministry of Industry and Information Technology, the national lithium-ion battery output reached 750 GWh in 2022, an increase of more than 130% year-on-year, and the total industry output value exceeded 1.2 trillion yuan, which is about twice the previous year's total industry output value of 600 billion yuan.

Anode materials, anode materials, diaphragm, electrolyte and other lithium-ion first-order materials production of about 1.85 million tons, 1.4 million tons, 13 billion square meters, 850,000 tons, year-on-year growth of more than 60%; industry scale to further expand, the industry's total output value exceeded 1.2 trillion yuan.

According to the China Research Institute of Industrial Research "2023-2028 China lithium battery industry supply and demand analysis and development prospects research report" analysis:

In 2022, the national new energy vehicle power battery installation is about 295GWh, and the cumulative installed growth rate of lithium storage exceeds 130%; in 2022, the national lithium exports totaled 342.65 billion yuan, up 86.7% year-on-year.

The Ministry of Industry and Information Technology said that in 2022, China's lithium-ion battery industry adhere to the structural reform on the supply side, accelerate technological innovation and transformation and upgrading development, and constantly improve the supply capacity of advanced products to maintain rapid growth trend. The industry in general shows some of the following characteristics:

First, the production continues to grow rapidly, and the scale of the industry continues to expand. According to the industry standard announcement enterprise information and research institutions estimate, 2022 national lithium-ion battery production reached 750GWh, an increase of more than 130%, including energy storage lithium production exceeded 100GWh; cathode materials, anode materials, diaphragm, electrolyte and other lithium first-order materials production of about 1.85 million tons, 1.4 million tons, 13 billion square meters, 850,000 tons, year-on-year growth Both reached more than 60%; industry scale to further expand, the industry's total output value exceeded 1.2 trillion yuan.

The second is the accelerated expansion of industry applications, boosting the double carbon process. 2022, lithium in the field of new energy vehicles and scenery energy storage, communications energy storage, home energy storage and other energy storage areas to accelerate the rise and usher in the growth window, 2022, the national new energy vehicle power battery installation of about 295GWh, the cumulative installation of lithium storage growth rate of more than 130%. 2022, the national total exports of lithium 342.65 billion yuan, an increase of 86.7%, to make a positive contribution to the efficient development and utilization of new energy and global economic and social green low-carbon transformation.

Third, the pace of technological progress has accelerated, and advanced products are emerging. Backbone enterprises around the efficient system integration, large capacity cores and other directions to speed up the layout, advanced battery products system energy density of more than 250GWh/kg; flexible, low-temperature resistance, water resistance of new battery products in the Winter Olympics equipment successfully applied; a new generation of information technology and new energy storage products to further integration, intelligent liquid cooling technology and other significant enhancements to the thermal management of energy storage systems to reduce the system safety risks.

White paper data show that in 2022, the overall global shipments of lithium-ion batteries 957.7GWh, an increase of 70.3% year-on-year. China's lithium-ion battery shipments reached 660.8GWh, up 97.7% year-on-year, exceeding the global average growth rate and accounting for 69.0% of the overall global lithium-ion battery shipments.

Problems faced by the development of lithium battery industry

Lithium battery industry has been developing for about thirty years, the market has not yet matured, and some common problems in the industry need to be cracked.

First, the standardization of lithium batteries has yet to break through. In the two-wheeled vehicle lithium battery market, Xingheng Power relies on market advantages and has basically achieved standardization in the past few years, and the interchangeability ratio between different products has reached a high level. In the field of new energy vehicle lithium battery, the standard between products has not yet been realized, basically a factory a standard, which is not conducive to the penetration of lithium battery in the new energy vehicle market.

Second, the safety of lithium batteries must be promoted by multiple parties. In recent years, the news of spontaneous combustion of electric bicycles and new energy vehicles often appear, causing consumers to worry about the safety of power batteries. The national level also needs to increase regulatory efforts to combat substandard products; at the same time, lithium battery manufacturers should continue to focus on technology and innovation, research and development of safer, more durable and more affordable products.

Third, the industry expansion should be orderly. Due to the mismatch between supply and demand in the lithium battery industry, many companies in the industry have expanded production. At the same time, some companies outside the industry also saw the "windfall", cross-border to join this market. The lithium battery industry has a high technical threshold, product iteration takes time, the best production capacity of enterprises in the industry to reach more than 80% efficiency to expand production, outside the industry enterprises must be cautious to enter.

Li-ion battery industry development prospects

New energy, new materials, new energy automobile industry as a strategic emerging industries and pioneering industries at the same time by the relevant national industrial policy support, has a huge development space. Lithium-ion batteries belong to the new energy industry, in the face of increasingly urgent environmental pressure, China has introduced a number of laws, regulations and policies to support the overall development of the lithium-ion battery materials industry. The "14th Five-Year Plan" national strategic emerging industries development plan clearly put forward the in-depth implementation of the manufacturing power strategy, vigorously develop new energy, new materials and other strategic emerging industries. The introduction of relevant policies has promoted the healthy development of the lithium-ion battery materials industry.

Data from the National Passenger Association shows that from January to July 2022, China's new energy vehicle sales reached 2.733 million units, up 121.5% year-on-year.

With the rapid development of new energy vehicles and the increase of intelligent consumption in daily life, lithium battery application scenarios will be more abundant, and the next 10 to 15 years will be its golden development period.

Lithium battery industry research report aims to analyze the future policy direction of lithium battery and the development trend of regulatory system from the strategy of national economic and industrial development, explore the market potential of lithium battery industry, provide a vivid depiction of market changes from multiple perspectives such as industry scale, industry structure, regional structure, market competition, industry profitability level, and clear development direction based on in-depth research in key market segments. It predicts the future market prospect of lithium battery business in order to help customers to clear the policy fog and find investment opportunities in lithium battery industry. Based on extensive analysis and forecasts, the report studies the future development and investment strategies of the lithium battery industry, provides insight for lithium battery companies in the fierce market competition, timely adjustment of business strategies according to market demand, and provides accurate market intelligence information and scientific decision-making basis for strategic investors to choose the right investment timing and company leadership for strategic planning.