According to data recently released by the China Automotive Power Battery Industry Innovation Alliance, in September, my country's power and other battery sales were 103.9GWh (gigawatt hours), a month-on-month increase of 11.9% and a year-on-year increase of 44.8%; from January to September, my country's cumulative sales of power and other batteries were 685.7GWh, a cumulative year-on-year increase of 42.5%.

Lithium iron phosphate batteries

Accounting for 71.4% of the total installed capacity

Data shows that in September this year, my country's power battery installed capacity was 54.5GWh, a month-on-month increase of 15.5% and a year-on-year increase of 49.6%. Among them, the installed capacity of ternary batteries was 13.1GWh, a month-on-month increase of 8.2% and a year-on-year increase of 7.4%, accounting for 24.1% of the total installed capacity; the installed capacity of lithium iron phosphate batteries was 41.3GWh, a month-on-month increase of 18%, a year-on-year increase of 70.9%, accounting for 75.8% of the total installed capacity.

From January to September, the cumulative installed capacity of power batteries was 346.6GWh, a cumulative year-on-year increase of 35.6%. Among them, the cumulative installed capacity of ternary batteries is 98.9GWh, a cumulative year-on-year increase of 21.2%, accounting for 28.5% of the total installed capacity; the cumulative installed capacity of lithium iron phosphate batteries is 247.5GWh, a record high, with a cumulative year-on-year increase of 42.4%, accounting for 71.4% of the total installed capacity.

Public data shows that from 2018 to 2020, ternary batteries have always maintained a leading market share in China with their advantages such as high energy density and long battery life. In the later period, with the help of innovative technologies, the advantages of lithium iron phosphate in terms of safety and cost have become increasingly prominent. In July 2021, the market share of lithium iron phosphate batteries surpassed that of ternary batteries, and it has remained in the lead since then.

"The continued increase in the installed capacity of lithium iron phosphate batteries over ternary batteries is the result of the combined effect of multiple factors such as market demand and technological progress. It is expected that with the continuous advancement of technology and the development of the market, lithium iron phosphate batteries are expected to be used in more fields." Yuan Shuai, deputy secretary-general of the Zhongguancun Internet of Things Industry Alliance, told the Securities Daily reporter.

Ternary lithium battery market share

It is difficult to "overtake" in the short term?

The continued growth in the installation volume of lithium iron phosphate batteries is inseparable from the continued large-scale layout of major leading companies.

Recently, the groundbreaking ceremony of the Xiamen lithium iron phosphate project of Shengtun Group was held. The total investment of the project is about 3.1 billion yuan, and it is planned to build a lithium iron phosphate production base with an annual production capacity of 200,000 tons. According to the plan, the project will be built in two phases and is scheduled to be fully completed and put into production in the fourth quarter of 2026. After reaching full production, it is expected to achieve an annual output value of 6 billion yuan.

Earlier, CATL released the world's first new lithium iron phosphate battery with 1,000 kilometers of endurance and 4C supercharging characteristics, named Shenxing PLUS battery. It is reported that this battery can provide users with an ultra-long endurance experience of up to 1,000 kilometers, and can achieve 600 kilometers of energy replenishment in 10 minutes of charging.

Against the background of intensified domestic market competition, many companies have also turned their attention to overseas. For example, in late September, Wanrun New Energy announced that it plans to set up a project company in the United States through a series of wholly-owned subsidiaries to deploy lithium iron phosphate material projects. The project is initially planned to invest US$168 million and will be planned to build an annual production of 50,000 tons of lithium iron phosphate. The total planned construction period of the project is about 30 months, and it is planned to be fully put into production in 2028.

In the first half of this year, Hunan Yuneng issued an announcement on foreign investment, planning to set up an investment company in Singapore, and the investment company will set up a project company in Spain. Through the project company, it will invest in the construction of a 50,000-ton lithium battery positive electrode material project with an annual production capacity of 50,000 tons. The total planned investment of the project is about RMB 982 million (about 129 million euros), and the construction period is 15 months.

Duan Zhiqiang, director of Wanchuang Investment Bank Research Institute, said that in the context of price cuts for new energy vehicles, batteries account for a high proportion of the cost of the entire vehicle. Compared with other power batteries, lithium iron phosphate batteries are more economical. Based on this, it is expected that the market share of ternary lithium batteries will not surpass lithium iron phosphate batteries in the short term.

Source: Securities Daily

Reporter: Li Wenshan

Release date: October 14, 2024

Original URL: http://www.zqrb.cn/finance/hangyedongtai/2024-10-14/A1728686223460.html