China's power battery industry market size and future development trend

The power lithium battery is a new green high-energy chemical power supply, which has shown very superior performance in the application of electronic devices and electric toys that require high energy and high power supplies. When the discharge current is above medium, the discharge time can reach about 6 times of the alkaline manganese battery. Compared with nickel-metal hydride batteries, the discharge voltage is stable and the storage time has a significant advantage. Therefore, it is widely used in new energy applications.

Market size

As new energy passenger vehicles become the main engine driving the demand for power batteries, and the marketization degree of new energy vehicles improves, power battery shipments and installed capacity will form a benign proportional relationship. In 2019, the market size of China's power battery was 71 billion yuan, down 11.8% year-on-year, and the main reason for the incremental non-value-added market was the decline rate of battery monomer and system prices was greater than the increase rate of battery shipments, and the price of power batteries fell by about 15%-20% year-on-year in 2019.

Data source: GGII, China Business Industry Research Institute

Future development trend

1. China's rapidly improving position in the global lithium battery industry

China's new energy market has broad prospects, the upstream and downstream industries continue to improve the supporting, at the same time, with the support of the state subsidy policy, China's power lithium battery enterprises in the global market competitiveness continues to increase, the market share is growing rapidly, creating conditions for the development of upstream advanced precision structural parts supporting enterprises.

In addition, LG, Panasonic, Samsung and other international lithium battery giants have set up subsidiaries in China, including research and development centers, production and manufacturing departments.

The proportion of lithium battery materials localization has gradually increased, thus providing a good market opportunity for the development of China's lithium battery precision structure enterprises.

2. The advantages of soft pack battery are prominent, and it will become one of the important technical routes of power battery system

Due to the advantages of energy density, safety performance and cycle life, soft pack power batteries are mainly used in the field of new energy passenger vehicles. Passenger cars are the core growth drivers of the new energy vehicle market, and terthree soft-pack power batteries directly benefit from the rapid development of downstream new energy passenger vehicles and become one of the important growth points of the lithium battery market.

From the perspective of battery shape and packaging, soft-pack batteries have long been one of the main technical routes for lithium-ion batteries in the world, especially in the field of consumer lithium batteries, with a penetration rate of more than 70%.

3. Battery technology continues to improve and has begun to be used in batches in the field of new energy vehicles

Through technological innovation, industrial transformation, new energy development and other means, the development of new energy automobile industry based on low pollution and low emissions is an important way to achieve sustainable economic development. After years of accumulation, China's power lithium-ion battery technology continues to progress, and has begun to be used in batches in the field of new energy vehicles.

With the progress of technology and the increasingly perfect industrial chain, product quality and performance are rapidly improving, and the current domestic mainstream product range can reach more than 200 kilometers. The improvement of the industrial chain and the expansion of the industrial scale have pushed the cost and price of lithium-ion battery products down, which has correspondingly reduced the cost of new energy vehicles. In addition, the development of fast charging technology also makes the use of electric vehicles more convenient.

Future development prospect

1. The policy is favorable to the new energy automobile industry and drives the development of the power lithium battery industry

China has introduced a number of new energy vehicle encouragement policies, clearly support the development of new energy vehicles, and promote the new energy automobile industry to the focus of the "Fourteenth Five-Year Plan" government industry support development, carrying the important mission of China's automobile industry to achieve "curve overtaking". At present, China has established a relatively complete policy support system for the new energy automobile industry from research and development, production, purchase, use to infrastructure, etc., which is conducive to the further development of the new energy automobile industry.

At the same time, in view of the environmental pollution caused by the automobile industry, more and more cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Hangzhou and other first and second tier cities have begun to restrict the purchase and driving of traditional fuel passenger vehicles, which also helps to increase the demand for new energy vehicles.

2. "Replacing oil with electricity" has promoted the market demand of the power lithium battery industry

China's natural resources are rich in coal, poor oil and less gas, and its dependence on crude oil is high. Reducing motor vehicle fuel consumption and maintaining national energy security are the hard constraints for the development of the automobile industry. Coupled with the developed power industry in China, "replacing oil with electricity" is the long-term trend of the development of the automobile industry.

In recent years, in the case of the depletion of oil resources, countries have issued a ban on the sale of fuel vehicles. Under the environment of the implementation of the double points policy in China and the restriction of driving in major cities, new energy vehicles have become the main trend of the future development of the global automobile market. As the core component of new energy vehicles, the market demand for power lithium batteries will inevitably grow rapidly.

3. The improvement of environmental protection requirements accelerates the development of the industry

With the rapid development of China's economy and the continuous rise of car ownership, the problem of environmental pollution has become increasingly prominent, and people's demand for new clean energy is becoming more and more urgent. The environmental problems caused by the exhaust gas emitted by traditional vehicles have directly intensified people's desire for the application of new energy.

China's automobile industry through technological innovation, industrial transformation, new energy development and other means to develop a low-pollution, low-emission based new energy automobile industry, is an important way to achieve sustainable economic development. In terms of the market demand for lithium batteries, the field of power batteries for new energy vehicles is undoubtedly a huge potential growth point.

For more information, please refer to the "China Power Battery Industry Market Prospects and Investment Opportunities Research Report" released by the China Business Industry Research Institute. At the same time, the China Business Industry Research Institute also provides industrial big data, industrial intelligence, industrial research reports, industrial planning, park planning, the 14th Five-Year Plan, industrial investment and other services.