Growth of Lithium-ion Battery Industry with Power Battery

Recently, the 2016 half-year performance report of a number of power battery companies, including nandu power, chengfei integration, tianqi lithium industry and other companies, have achieved profit growth. It is not difficult to see that the lithium-ion battery industry has continued the momentum of rapid development. The continuous and rapid expansion of the new energy vehicle market has driven the demand for lithium-ion power batteries to soar, and power batteries have gradually become the dominant force in the growth of the lithium-ion battery industry. In the first half of the year, the output of mobile phones and electric vehicles in two major applications of lithium ion batteries showed rapid growth to varying degrees. China's mobile phone production reached 966 million units in the first half of the year, up 23.3 percent year-on-year, according to the National Bureau of Statistics, while the output of new-energy vehicles was 285,000 units, up 88.7 percent year-on-year. The market for power cells, the core equipment of new energy vehicles, also benefits.

Main Growth of Lithium-ion Battery Industry with Power Battery

Two factors promote the growth of power cells

According to China Power Lithium Battery Industry Market Demand Forecasting and Investment Strategic Planning Analysis Report provided by the Institute of Prospect Industry, China's lithium battery production in 2011 was less than 15 megawatts, and the power lithium battery accounted for almost no part of it. By 2015, China's lithium battery production rose to 47.13 megawatts. Lithium batteries accounted for 36.07 % of them, which is in line with the development trend of domestic new energy vehicles.

According to statistics, in 2014 China produced 78,500 new energy vehicles, an increase of 3.5 times, while sales reached 74,800 vehicles, an increase of 3.2 times year-on-year. By 2015, a total of 340,400 new energy vehicles had been produced throughout the year, an increase of 3.3 times over the previous year, and sales reached 331,100 vehicles, an increase of 3.4 times over the previous year, making it the world's largest market for new energy vehicles.

In fact, power cell companies have the same growth trajectory. "According to statistics, in 2015, our company's power battery shipping power is close to 2.5 GW. Sales are up about fivefold from 2014. In 2016, due to the adjustment of the state subsidy policy, sales in the first three months were also slightly increasing. But we expect growth to double throughout the year. Yangqi, marketing director of Ningde Times New Energy Technology Co., Ltd.(`` Ningde Times "), said the company has already felt the market brought benefits.

So what are the reasons for the acceleration of growth in the power cell sector? Yangqi analysis believes that there are two main factors that bring about the growth of power batteries. On the one hand, the rapid growth of the new energy car market drives the demand for power batteries. This growth is inseparable from the country's new energy vehicle strategy. On the other hand, after the practice of the past few years, the problems caused by low-end lithium batteries have gradually become exposed, and customers 'choices have become more rational. They are more inclined to use high-quality battery products, and the concentration of the lithium battery industry has increased. Therefore, domestic high quality battery products are still in short supply.

Indeed, this is true. In the first half of this year, the Ministry of Industry and Information Technology issued a total of four batches of enterprise catalogues that meet the "Standard Conditions for the Automobile Power Battery Industry", including a total of 57 companies, including 56 power battery companies and one battery system company. According to the latest regulations for the promotion of new energy vehicles, only new energy vehicles that use battery products of power battery catalogs are eligible to enter the promotion catalogue and receive state and local subsidies. Therefore, it has a huge impact on the lithium-ion power industry, and companies that have entered the list and have not entered the list have adjusted their development strategies.

According to incomplete statistics, in the first half of the year, 54 listed companies in the lithium-ion battery industry in China have released expansion plans with a total investment of about 116 billion yuan. BYD, Ningde New Energy, Guoxuan Hi-Tech, Tianjin Lishen and other domestic power batteries The investment of leading enterprises is more than 3 billion yuan.

Need to further open up "security clearance"

Although one side is the hot market demand for power batteries, but should also see the other side of the coin, product quality has always been an issue that can not be ignored.

Lithium-ion batteries are generally used in electric vehicles in China. Lithium-ion batteries have the characteristics of small size and high capacity density, and meet the requirements of lightweight development of electric vehicles. However, lithium is a lively metal. When the battery system fails, it may cause the heat of the lithium ion battery to lose control and produce a large amount of high temperature gas. If the high-temperature gas can not be released, it may lead to combustion or explosion.

At present, compared with foreign countries, China's power lithium battery capacity appears "small scattered" characteristics. According to incomplete statistics, there are currently more than 200 power battery manufacturers. In the rapid development of the industry, the vast majority of enterprises can find their own jobs. However, in the future, when market growth slows, the problem of excess capacity will inevitably arise. If the state does not regulate, it is very likely that there will be vicious price competition in which bad money will expel good money, and the quality of products is worrying.

"It is gratifying that from the current policy adjustment, the country has realized this problem and is strengthening the regulation and guidance of the market. We expect this policy adjustment to focus on high-quality battery products, real Promote the healthy development of the industry." Yangqi said.

And the power lithium battery industry's "scattered" problem, this problem can not be solved solely by the efforts of individual enterprises, mainly rely on the power of the country to guide industrial integration. For example, establishing an entry-level mechanism for enterprises, establishing a reasonable product standard system, improving production design and manufacturing standards, establishing a quality tracking mechanism, establishing a vehicle recall mechanism, and promoting equity mergers and acquisitions and other exit mechanisms.

The page contains the contents of the machine translation.