Behind leading the industry trend is China's power batteries

Against the backdrop of rapid global development of new energy vehicles, the power battery industry has also experienced explosive growth. According to GGII data, the global order volume for power batteries exceeded 10 trillion yuan in 2023, a year-on-year increase of about 70%.The surge in orders for power batteries has also driven up the prices of lithium battery raw materials. In 2023, the price of lithium carbonate once exceeded 600000 yuan/ton, and the price of battery grade lithium hydroxide exceeded 500000 yuan/ton.

Despite some challenges, the power battery industry will continue to develop rapidly. It is expected that by 2030, global power battery shipments will exceed 5TWh. According to data released by the General Administration of Customs, in the first nine months of 2023, China's foreign trade exports have exceeded a staggering 11 trillion yuan mark. Among them, the "new troika" such as photovoltaic and lithium batteries strongly carried the export KPI, and the orders increased by 58.9% year-on-year, and the total orders in the first three quarters climbed to 870 billion in the first nine months. Among the top 10 global power battery installation companies, Chinese companies occupy six seats. From January to October data, China's lithium-ion battery exports increased by more than 40%. Therefore, it is roughly estimated that the current global lithium battery orders or have exceeded 10 trillion yuan.

Since 2024, China's power battery industry has innovated repeatedly and achieved fruitful results: the world's first lithium iron phosphate battery that combines a range of 1000 kilometers and 4C fast charging, and new battery materials such as lithium manganese iron phosphate and composite current collectors have emerged in commercial use. Chinese enterprises have achieved research and development progress in the highly anticipated next-generation battery form of "solid-state batteries", which is on par with the world's leading level.

Thanks to advanced technology and meticulous production management, China's power batteries have excellent quality and affordable prices, forming a strong comparative advantage globally. In recent years, the demand for overseas power battery markets has rapidly risen, but the lithium battery industry chain in Europe and other regions has obvious shortcomings. Chinese power battery companies have set sail to build production capacity, strengthening and supplementing the local supply chain. This not only provides high-quality batteries produced locally for overseas car companies, but also drives local foreign investment and employment, achieving a win-win situation for economic and social benefits.

However, in recent times, Western countries have issued so-called "overcapacity theories" to unjustly suppress China's power battery industry, with the intention of curbing its international development momentum. The Shanghai Securities News reporter reviewed the progress of the global power battery industry and found that the production capacity and technology provided by Chinese power battery companies to the world are the result of natural selection in the global market. In fact, they have vigorously promoted the healthy and high-quality development of the global industry. Chinese power battery companies are deeply empowering the global new energy industry and becoming an important driving force for the development of the global new energy industry.

With the development of the global electric vehicle industry, as one of the core components of electric vehicles, the technology level of power batteries is constantly improving rapidly, and their market is also showing explosive growth. Conversely, it further promotes the promotion, application, and industrial development of electric vehicles. At the same time, in order to reduce carbon emissions from fossil energy consumption and promote the application of renewable energy, energy storage systems have been increasingly widely used around the world. This means that a new type of production relationship is about to emerge on the stage of Chinese history, driving changes in Chinese society and even affecting the global production and trade structure. Lithium batteries have become one of the few industries in China that is independently controllable and has advanced production processes, and China has control over this track. In 2023, China will replace Japan as the world's largest exporter of automobiles. At the same time as the rise of lithium batteries, it has driven the rise of a group of multinational companies, and China has gained new export flagship products. A world-class automotive industry cluster oriented towards the future is moving forward with great strides.