The hottest lithium battery low profit era is comi

The era of low profit for lithium batteries is coming.

according to the survey of the global market research organization trendforce's green energy division e ceramic matrix composite energytrend, China's battery cell plants, including new energy and Guangyu, have gradually risen, and the capacity expansion rate is more positive than that of Japanese and Korean battery plants. According to the survey of energytrend, the green energy division of trendforce, a global market research institution, China's battery cell plants, including new energy and Guangyu, have gradually risen, and the capacity expansion rate is more positive than that of Japanese and Korean battery plants. However, the hidden worries contained in China's battery factories' entry into the mainstream supply chain reveal that the era of low profit for lithium batteries is coming, and the gross profit of the lithium battery industry is likely to be explored further

supply chain proliferation Chinese battery rise

lithium battery has been popular in products since 2000. Since 2004, South Korea has also rushed to catch up with the production of notebook computer batteries. In 2008, with the safety problems of Japanese batteries, it joined the Chinese battery supply chain, making the overall lithium battery supply chain evolve from the early Japanese led to a situation in which Japan, South Korea and the mainland are divided into three parts

in terms of the development threshold of lithium batteries, consumer products such as, cameras, etc. because of their small size and low power consumption, only a single battery cell is needed as their power source, and the battery module assembly process is simple. Generally speaking, Ganfeng international and mtmarion signed a long-term underwriting agreement, cost performance is the key to such applications, and the supply chain is mainly from three sources: Japan, South Korea and China. On the contrary, in notebook computer products, because the system consumes high power, most of them use multiple series parallel battery cells to achieve the voltage and current values required by the system, which also improves the safety threshold. At present, this kind of market is still dominated by Japanese and Korean battery manufacturers

at present, many important consumer devices choose China as the assembly base, which makes many battery cells and battery assembly also settle in China, including Japanese and Korean battery factories, which also set up battery production bases in China, driving the yield improvement of China's battery industry. At present, when the production expansion rate of polymer batteries slows down, China's battery cell factories are still actively planning for capacity expansion. Recently, the hottest apple supply chain has also added new China's battery cell factories. Therefore, whether from the domestic demand market or private brand catalysis, the future development potential of China's battery cell factories cannot be underestimated

the era of low gross profit of vertical integration in the middle and lower reaches is coming.

according to the survey of energytrend, at present, the self-determination rate of assembly and processing in cylindrical battery cell factories has reached 50, with a diameter of more than 40mm, and some Japanese factories account for more than 70%. Because square batteries are mostly used in commodities, almost 100% of them are assembled by battery cell factories; Due to the high customization of polymer batteries, almost all applications of single battery cell are completely self-assembled by the battery cell factory, and only multi series and parallel applications will be assembled and processed by the assembly factory; Because cylindrical batteries are mostly assembled in multi series and parallel mode, most of them are assembled and processed by professional assembly plants

whether it is a single cell or multiple series and parallel applications, battery cell factories sometimes seek assembly orders by reducing the price of battery cells in order to enter the assembly supply chain because they master key parts. In the long-term development of supply exceeding demand, the price of battery cells also declines quarter by quarter. In the development of battery cell manufacturing and battery assembly processing gross profit, it is a vicious circle in the long run, It also forces the relationship between battery cell factories and battery assembly factories to gradually evolve from the upstream and downstream relationship in the past to a situation of cooperation and competition