(Producer/Author: Minsheng Securities, Qiu Zuxue, Zhang Yiqing, Zhang Jianye)
Photovoltaic welding belt: Photovoltaic Auxiliary materials "small industries, big markets"1.1 Photovoltaic welding belt is an important part of photovoltaic modules
Photovoltaic welding belt, also known as tin-plated copper tape or tin-coated copper tape, is an important part of photovoltaic modules and is used for connections in photovoltaic battery packaging. It will lead the electrical energy converted from light energy on silicon wafer and send it to electrical equipment, playing an important role in conducting electricity and collecting electricity to increase the output voltage and power of photovoltaic modules. The photovoltaic cell sheet connected through photovoltaic welding tape is formed after the EVA film, photovoltaic glass , back film, border and other materials are packaged, and the photovoltaic components are directly used in the construction of photovoltaic power generation systems. The quality of photovoltaic welding tapes is related to the transmission efficiency and service life of photovoltaic modules. Performance indicators such as the appearance, size, mechanical properties, surface structure, resistivity of the photovoltaic welding tape are important factors affecting the efficiency of photovoltaic power generation, the fragmentation rate of photovoltaic cells, and the long-term reliability and durability of photovoltaic modules. High-quality and high-tech photovoltaic welding belts can not only greatly improve power generation efficiency, but also reduce the fragmentation rate of photovoltaic cells and ensure the long-term stable work of photovoltaic modules. It is an important way for downstream photovoltaic power generation companies to achieve cost reduction and efficiency improvement.
Photovoltaic module manufacturing using photovoltaic welding tape as raw materials is in the middle of the industrial chain. The photovoltaic industry chain mainly includes five major links: silicon material, silicon wafer, cell , photovoltaic modules and photovoltaic application systems. The upstream of the industrial chain is mainly silicon material and silicon wafer links; the midstream mainly includes battery chips and photovoltaic module links; the downstream is the photovoltaic application system link. In the entire photovoltaic industry chain, photovoltaic module manufacturing with photovoltaic welding tape as raw materials is in the middle of the industrial chain. The upstream of the photovoltaic welding belt industry is mainly raw material suppliers such as copper, tin alloy and flux , and the downstream customers are photovoltaic module manufacturing companies.
1.2 There are a variety of photovoltaic welding tapes. There are many types of photovoltaic welding tapes. They meet different characteristics and can be divided into interconnect welding tapes and busbar welding tapes according to the product application direction. Interconnect solder tape is a tin coated solder tape used to connect photovoltaic cells and collect and transmit the current of photovoltaic cells. It is connected to the front and back gate lines of the battery cell, connects the positive and negative electrodes of adjacent battery cells, forming a series circuit, which transports the electrical energy on the battery cell to the electrical equipment, and plays a role in heat dissipation and mechanical production. Bus soldering tape is a tin-coated soldering tape used to connect photovoltaic cell strings and junction boxes and transmit photovoltaic cell string currents. It connects many cells in series to achieve a complete current path. For conventional photovoltaic modules, the consumption ratio of interconnect welding tape and busbar welding tape is about 4:1; for multi-gate modules, the consumption ratio of interconnect welding tape and busbar welding tape is about 5:1.
According to the performance and applicable fields of photovoltaic welding tape, interconnection welding tape mainly includes conventional interconnection welding tape, MBB welding tape, low-temperature welding tape, low-resistance welding tape, etc.; busflow welding tape mainly includes conventional busflow welding tape, punching welding tape, black welding tape, bending welding tape, etc.
1.3 Copper and tin raw materials account for a higher cost of soldering tape
Photovoltaic welding tape main raw materials are copper and tin, etc., which are composed of substrate and surface coating. The substrate is copper of different sizes, and it is required to have accurate specifications and sizes, good conductivity and certain strength; the surface coating is tin alloy, and the coating materials such as tin alloy can be evenly coated on the surface of the copper substrate according to a certain component ratio and thickness using special processes such as electroplating, vacuum deposition, spraying or hot dip coating. Because the copper substrate itself does not have good welding performance, the main function of the tin alloy layer is to make the photovoltaic welding tape meet the solderability and firmly weld the photovoltaic welding tape to the main gate line of the battery cell, thereby playing a good current flow-conducting role.
Photovoltaic welding tape cost is directly linked to the prices of copper and tin. Taking Yubang New Materials as an example, the company's main product business costs are mainly composed of direct material , direct labor, manufacturing costs and transportation costs. Among them, direct materials account for the largest proportion, which has remained stable at more than 91% in the past three years, and accounted for 93.99% in 2021.Among the direct material costs, the procurement cost of copper materials is the main one, reaching 70.93% in 2021, while the flux cost accounts for a very small proportion, accounting for 0.16% of the three materials.
Copper and tin prices fluctuate and fall, and the cost of photovoltaic welding tapes further declined. Copper price. As the US CPI rebounded beyond expectations and the Biden administration insisted that anti-inflation is the top priority of the economy, the market further accelerated the expectation of Fed rate hikes in . is expected to heat up. Against the background of further fermentation of macro negative factors and ease of supply-side disturbances, copper prices showed a volatile decline; in terms of tin prices. At the beginning of 2022, expectations of recovery of tin supply, as well as domestic epidemic control and high tin prices will have a negative impact on tin ingot consumption. The import window opened in May, and the spot tin market was once again impacted and continued to fall. At the same time, central banks of various countries released expectations of interest rate hikes, overseas liquidity tightened, and prices continued to fall. The decline in copper and tin prices has greatly alleviated the cost pressure of photovoltaic welding tapes, and the industry's gross profit margin and profitability are expected to further improve.
2.1 Policy key support, guiding the sustained development of the photovoltaic industry
Photovoltaic industry is supported by national policies. National Energy Administration data shows that as of the end of 2021, the cumulative installed capacity of photovoltaic power generation in China reached 307 million drywatts, and the new installed capacity in 2021 reached 55 million kilowatts. According to the "Implementation Plan on Promoting the High-Quality Development of New Energy in the New Era" issued by the National Development and Reform Commission and the National Energy Administration at the end of May 2022, it aims to anchor the goal of my country's total installed capacity of wind power and solar power generation to reach more than 1.2 billion drywatts by 2030, and accelerate the construction of a clean, low-carbon, safe and efficient energy system. Promote the application of new energy in the industrial and construction fields, and by 2025, the photovoltaic coverage rate of new building roofs of public institutions will strive to reach 50%. The " "14th Five-Year Plan" Renewable Energy Development Plan" released in early June 2022 once again emphasized the construction and application of the light volt industry in different regions and scenarios. From a national perspective, the photovoltaic industry is a sunrise industry supported by the state. In the next ten years, the country will promote the development of the industry and reshape the energy system by vigorously increasing the scale of photovoltaic installed capacity.
Policy subsidies have declined, turning to technological innovation and cost reduction and efficiency-enhancing. In recent years, the decline in the subsidy standards for photovoltaic power generation has caused the price of product in the photovoltaic industry chain to decline, and the profit margin of enterprises has narrowed. At the same time, it has had a major impact on domestic photovoltaic power station investment, and the domestic new photovoltaic installed capacity has continued to decline. But overall, all adjustments were made after comprehensively considering the development stage, investment costs, and project returns of the photovoltaic industry. While ensuring project returns promote the rapid development of the photovoltaic industry, it guides the photovoltaic industry to quickly reduce the cost of photovoltaic power generation through technological innovation, cost reduction and efficiency enhancement, and thus effectively promote the "parity grid access" process and drive the continuous growth of downstream market demand. The photovoltaic industry has entered a new stage of healthy, orderly and sustainable development, which is conducive to the steady improvement of the business scale and operating performance of photovoltaic module manufacturers and companies.
2.2 Installation cost has dropped significantly, and the era of parity Internet access is approaching
According to data from Huajing Industry Research Institute in 2022, photovoltaic welding tapes account for a relatively low cost in photovoltaic modules, about 2.7%. The cost composition of photovoltaic modules is mainly divided into silicon cost, namely cell cost, and non-silicon cost, that is, costs other than battery sheets, , including frames, glass, EVA junction boxes, backplanes and welding tapes, among which the cost of photovoltaic welding tapes only accounts for about 2.7% of the total cost of photovoltaic modules. As an important material for conducting electricity and electricity gathering on photovoltaic modules, photovoltaic welding tapes are mainly processed from copper substrates, tin alloy coatings and fluxes, and their raw material cost accounts for more than 90% of the total cost of photovoltaic welding tapes. Therefore, the downstream has a high acceptance of the price of photovoltaic welding tapes, and the cost changes brought about by the rising price of raw materials can be transmitted to the demand side through the price increase.
PV cost has dropped sharply, and the era of parity Internet access has begun. Thanks to policy support and driven by industrial development, the cost of renewable energy generation represented by solar photovoltaics and wind energy has gradually declined.With the continuous optimization of photovoltaic power generation technology, the cost of photovoltaic power generation has dropped by 82% from 2010 to 2019. According to IRENA statistics, the lowest cost of bidding for photovoltaic projects worldwide in 2020 has been reduced to 1.32 cents/kWh. With the increase in the power generation costs of natural gas , coal and nuclear energy, the gap between photovoltaic power generation and traditional power generation technologies has gradually increased. By 2020, the cost of photovoltaic power generation has been lower than that of traditional power generation models such as wind energy and nuclear energy.
The photovoltaic industry has gradually shifted from policy subsidies to technological innovation and cost reduction and efficiency-enhancing. On the one hand, the decline in subsidy policies has forced photovoltaic module manufacturers and companies to continuously reduce production costs and product prices. In addition, considering that there is limited room for subsidies to decline in the future and technological innovation promotes product updates and iterations, the impact of the decline in subsidy policy on the photovoltaic industry chain will weaken, and the realization of "parity-based Internet access" has driven the continued growth of downstream market demand, and the photovoltaic industry has entered a new stage of healthy, orderly and sustainable development.
2.3 Silicon material prices are expected to decline to alleviate downstream cost pressure
2021 Silicon material prices rise, raising downstream component prices. In the second half of 2021, the price of polysilicon materials continued to rise after experiencing a decline, rising from US$27/kg to US$29/kg, and then reached US$35/kg at the end of the first half of 2022. The price of single crystal PERC module also increased from US$0.25/watt to US$0.28/watt in the second half of 2021, and then decreased to US$0.27/watt at the end of the first half of 2022. Although there has been some decline, the average price level still has a certain increase. The production of
components is greatly affected by the price of silicon materials. The characteristics of the silicon material industry are that the production expansion and construction period is long, the polysilicon capacity construction period is 12-18 months and the slope climb period is 3-6 months. The production expansion period of its downstream silicon wafers, battery cells and components is only 3-6 months. Therefore, the silicon material production capacity and downstream demand are prone to mismatch in supply and demand. The rapid expansion of photovoltaic silicon wafer production capacity in 2021 has caused a shortage of silicon materials, so the prices are high, and component companies are under obvious pressure, showing a two-level differentiation. The cost transmission of first-tier companies with overseas orders is relatively smooth, and the operating rate is still maintained. Small and medium-sized enterprises with limited overseas orders are unable to bear the high costs and are forced to stop production. The continuous rise in silicon material prices has strong support for the price of components, and the rise in cost prices has also slowed down the growth rate of downstream installed capacity to a certain extent.
Silicon material production capacity is gradually released: Silicon material prices are expected to enter a downward channel at the end of Q3, and photovoltaic demand may usher in further growth. Silicon materials belong to the heavy asset industry, with high technical threshold and a longer production expansion cycle than downstream silicon wafers, battery cells and components. Although silicon materials are currently releasing production capacity steadily, photovoltaic demand has increased quarter by quarter, forming a tight balance of supply and demand, which is the reason why silicon materials are currently in high demand. According to statistics from the Silicon Industry Branch, in 2022, with the gradual increase in the new production capacity of polysilicon enterprises in the second half of the year, we expect that the supply and demand of silicon materials will be marginally alleviated in the fourth quarter of 2022, and prices are expected to enter a downward channel.
2.4 The proportion of photovoltaic power generation is low, and there is a broad room for improvement
With the promotion of " carbon neutrality " in many countries, the development of renewable energy represented by photovoltaics has become a global consensus. The proportion of renewable energy in the power structure continues to increase, which can promote the rapid growth of the scale of photovoltaic installed capacity. In 2020, global photovoltaic power generation only accounted for 3.1% of the total power generation, and there is still a lot of room for improvement in penetration rate. In 2021, photovoltaic power generation accounted for 39% of the new installed capacity of renewable energy power generation, accounting for the highest proportion of new installed capacity among renewable energy, reflecting the potential of the development of the photovoltaic industry.
Global photovoltaic market maintains rapid growth, and domestic market expectations remain unabated. With the gradual elimination of the negative impact of the new crown epidemic, the global photovoltaic market will maintain rapid growth driven by the continued decline in photovoltaic power generation costs and strong driving force of emerging markets.According to CPIA data, the global new photovoltaic installed capacity in 2021 was about 170GW, an increase of 31% year-on-year. We expect that the CAGR of the global photovoltaic field will be 26.84% from 2021 to 2025, and the global new photovoltaic installed capacity will reach 440GW by 2025. According to statistics from China Business Intelligence Network , my country's new photovoltaic installed capacity reached 54.93GW in 2021, a year-on-year increase of 14%. The "China Renewable Energy Development Report 2021" predicts that the scale of new photovoltaic installed capacity in my country can reach 100GW in 2022, a year-on-year increase of 84.04%. We expect China's new photovoltaic installed capacity CAGR will be 25% from 2022 to 2025, and China's new photovoltaic installed capacity will reach 195.31GW in 2025, with a broad market space.
Photovoltaic application market is highly concentrated, and emerging markets are growing rapidly. According to the 2021 global photovoltaic report data released by the International Energy Agency (IEA), the new photovoltaic installed capacity in the top ten countries in the world in 2021 was 129.1GW, accounting for 73.77% of the global new installed capacity in 2021. Among them, China's new photovoltaic installed capacity in 2021 was 54.9GW, accounting for 31.37% of the global photovoltaic installed capacity, and still maintains its largest photovoltaic application market position in the world. The concentrated trend of major component manufacturers is strengthened and the expansion plan is accelerated. According to the data from Global Data and China Photovoltaic Industry Association , from 2018 to 2020, the total shipments of the top five photovoltaic module manufacturers were 41.1GW, 51.9GW and 86.43GW respectively, and the CR5 reached 35.3%, 37.5% and 52.79%, respectively. The market concentration level is relatively high, and the concentration trend is further strengthened.
is stimulated by the growth of installed demand for downstream photovoltaic power stations. Taking Yubang New Materials’ main customers, Longi Leye Photovoltaic Technology Co., Ltd., Tenhe Photovoltaic Energy Co., Ltd. and Jinko Energy Holdings Co., Ltd. as examples, the module expansion capacity will be as high as 20GW, 28GW and 53GW in 2020 and after, respectively, and the expansion range (i.e. the ratio of the expansion capacity to the existing actual capacity) exceeds 100%, reflecting the high prosperity of demand.
2.5 The increase in installed capacity drives the growth of welding tape demand
The growth of downstream demand drives the demand for photovoltaic welding tape. According to CPIA data, the new global photovoltaic installed capacity in 2021 will be approximately 170GW, with a growth rate of 31%, and the new global photovoltaic installed capacity will reach 440GW in 2025. According to the industrial chain relationship, the growth rate of photovoltaic welding tape and photovoltaic new installed capacity is consistent. We predict that the average annual compound growth rate of global photovoltaic welding tape market demand from 2022 to 2025 will be about 26.84%. Under the three conditions of optimism, neutrality and pessimism, the photovoltaic welding tape required for 1GW photovoltaic modules will be 500 tons, 550 tons and 600 tons respectively. It is calculated that the market demand for photovoltaic welding tape in 2025 will reach 22/2420/264,000 tons, and the CAGR is 26.84%.
According to the prospectus of Yubang New Materials, for conventional photovoltaic modules, the consumption ratio of interconnect welding tape and busflow welding tape is about 4:1; for multi-gate modules, the consumption ratio of interconnect welding tape and busflow welding tape is about 5:1. Therefore, assuming that the consumption ratio of interconnect welding tape is 4:1, combined with the market size of the total demand for photovoltaic welding tape, the demand for interconnect welding tape and busflow welding tape will increase significantly from 74,800 tons and 18,700 tons in 2021 to 158,400 tons and 39,600 tons respectively, with a CAGR of 20.63%, which is assumed to be consistent with the changes in total demand.
2.6 The industry concentration is high, and the competitive development pattern is positive
The industry concentration is high, mainly Chinese private enterprises. In the context of "carbon neutrality", the demand for photovoltaic installed capacity has expanded rapidly. According to the demand for welding tapes of 500-600 tons/GW, it is estimated that the market size of photovoltaic welding tapes will reach 8.13 billion in 2022. As a sub-industry in the solar photovoltaic industry, photovoltaic welding belts have the characteristics of "small industries and large markets". Under the market demand space brought by the high prosperity of large industries, they have attracted many photovoltaic welding belt manufacturers to join the market. At present, there are about 80 domestic photovoltaic welding tape production enterprises, including more than 20 enterprises with independent R&D and production capabilities, and most of the production enterprises are private enterprises, with a sufficient degree of marketization. Photovoltaic welding belt enterprises match the distribution areas of downstream photovoltaic module manufacturing enterprises. my country's photovoltaic welding belt enterprises are mainly concentrated in Jiangsu and Zhejiang regions. Among them, the first-tier enterprises mainly include 7 companies including Yubang New Materials, Tailisong, Yitong Technology, Aidi New Energy, Sun Technology, Weiteng Co., Ltd. and Tongxiang Technology. In 2020, the CR5 was 39.05%, with a high industry concentration.
industry leader is Yubang New Materials, which has a stable leading advantage. The company's photovoltaic welding belt production capacity has developed rapidly, with a compound growth rate of production capacity of 28.7% in the past three years, of which the compound growth rate of interconnect welding belt production capacity has reached 25.7%, and the compound growth rate of busbar welding belt production capacity has reached 40%; in 2021, the total production capacity of photovoltaic welding belt is 16,308.8 tons, of which the annual production capacity of interconnect welding belt is 12,472.8 tons, and the annual production capacity of busbar welding belt is 3,836 tons. Against the backdrop of the gradual shift in market demand to MBB welding belts, Yubang New Materials will invest in three production and construction projects and supplementary working capital projects. After all the projects reach full production, the total production capacity is expected to reach 25,500 tons, further consolidating its leading position.
has large capital demand, difficult cost control and high R&D requirements, forming an industry entry barrier. 1) Funding barriers: The raw materials of photovoltaic welding tape are copper, tin alloys and other metals, and the working capital is required to invest a large amount, forming a certain capital threshold. 2) Cost control barriers: It is difficult for new enterprises to achieve effective cost control. There may be insufficient yield rate in the production process, and it is difficult to achieve the same product quality as mainstream enterprises. 3) R&D capability barriers: The update and iteration of photovoltaic welding tape requires welding tape manufacturing companies to have corresponding R&D capabilities and R&D investment. Newly entered companies are at a high risk of being eliminated by the market without a complete R&D system and core technical capabilities. Industry concentration will increase. At present, my country's photovoltaic welding belt industry is still in a period of continuous technological innovation, and has put forward higher requirements for the company's technological R&D capabilities. As a mid-to-upstream sub-sector of the photovoltaic industry, it also has a high market concentration . Due to high capital and technical requirements, as well as the advantages of large-scale production, small enterprises have gradually withdrawn from the market. The market share of photovoltaic welding tape manufacturing companies with outstanding R&D capabilities, advanced production technology and strong production capabilities will be further enhanced. It is expected that the market share of leading companies will remain stable or increase in the future, and the competitive landscape will be improved.
3 The industry reduces costs and increases efficiency. The iteration of welding tape technology is undergoing the iteration of
3.1 component technology, and photovoltaic welding tape is still the mainstream
photovoltaic welding tape is the mainstream solution for cell connection. Currently, the mainstream PERC battery modules in the market are mainly connected by photovoltaic welding tapes, and the future development directions of components mainly include TOPCon components, heterojunction components, tiling set components, MWT components, etc. From the perspective of cell connection methods, the connection methods of stacked tiles and MWT components are low in dependence on photovoltaic welding tapes, but due to research instability and high investment in equipment innovation, it is difficult to completely replace photovoltaic welding tape connections. The heterojunction components and TOPCon components that rely on photovoltaic welding tape as the main connection method have a large market space, the cost of photovoltaic welding tape is low, the welding reliability is high, the conductivity is good, and it still has strong competitiveness. According to the forecast of the China Photovoltaic Industry Association, photovoltaic welding tape will remain the mainstream solution for cell connection in the future from 2022 to 2030 and will continue to dominate the entire photovoltaic module market.
3.2 Multi-main gate technology development, guiding welding strips to MBB welding strips
Multi-main gate technology is also known as MBB (Multi-Busbar), which usually refers to 6 main gate lines or more. The increase in the number of main gate lines can make the gate lines thinner, thereby reducing the shading of the battery surface; at the same time, shortening the current conduction distance on the thin gate, which can effectively reduce the series resistance of the components; due to the reduction in the width of the main gate line and the thin gate line, it can also significantly reduce the consumption of silver paste ; in addition, the multi-main gate technology has strong compatibility, and can superimpose multiple mainstream technologies such as polycrystalline, single crystal, black silicon, PERC, TOPCON, HJT, double-sided, single glass, double glass, etc. In the past two years, with the continuous optimization of battery and module technologies, the existing products in the market have been popularized and promoted.
The development trend of the photovoltaic welding tape industry has made MBB the mainstream. According to data from the China Photovoltaic Industry Association, the proportion of 9 main gates and above batteries in 2021 increased by 22.80% to 89.00% compared with 2020, which has become the mainstream market. The proportion of 9 main gate and above batteries will further increase in the next few years, and it is expected to completely replace 5 main gate batteries.MBB welding tape, that is, multi-main gate welding tape, is an interconnected welding tape with a cylindrical structure with a diameter of between 0.2mm and 0.4mm. It is more conducive to photovoltaic modules to improve efficiency and reduce costs than conventional welding tapes, and has gradually become the mainstream product in the market.
The leading enterprise MBB welding tape revenue share has increased significantly. According to Zhiyan Consulting, Yubang New Materials' market share in 2020 was 15.6%, making it the leader in the photovoltaic welding belt industry, leading the market technology iteration and update. In 2021, the company's MBB welding tape sales were 8131.80 tons, accounting for 74.11% from 16.24% in 2019 to 74.11%. The revenue of MBB welding tapes was RMB 669.5478 million, accounting for RMB 669.5478 million, accounting for RMB 71.73% from 18.19% in 2019, both of which showed significant growth. Tongxiang Technology, the second largest photovoltaic welding tape leader with a market share of 10.20%, has also increased significantly since 2020.
3.3 Multi-main gate technology has been further updated, and mainstream technology has improved the welding tape process to SMBB switch
SMBB, reducing the amount of silver paste and significantly reducing costs. The most obvious feature of SMBB welding tape is that its inner diameter becomes smaller, generally less than 0.25mm. The use of copper for SMBB welding tape will increase, and the thinner welding tape will bring less weight of welding tape and lower unit price cost per watt. Coupled with the thinner EVA film thickness covered by SMBB, the overall cost reduction will bring more gross profit margin to manufacturers. Based on the introduction in the prospectus of the leading company Yubang New Materials, copper accounts for 82.86% of the raw materials of MBB welding tape. We assume that the proportion of copper in SMBB welding tape increases to 85%, and accordingly, it is calculated that the unit cost of SMBB welding tape is 71.87 yuan/kg. Compared with the unit cost of MBB welding tape, the cost reduction effect is significant. At the same time, as the wire diameter becomes thinner, the amount of welding tape will also be reduced when photovoltaic modules are installed. Calculated according to conventional size, the unit consumption of MBB welding tape with a thickness of 0.29mm is about 520 tons per GW. Therefore, we assume that the thickness of SMBB welding tape is 0.25mm, and correspondingly, the unit consumption is about 425 tons per GW. The total cost of single GW has also been greatly reduced from 40.54 million yuan of MBB welding tape to 31.82 million yuan, with a reduction of 21.53%.
SMBB Solder tape will become the mainstream type of solder tape. The key to reducing costs and increasing efficiency of high-efficiency battery technology is metal optimization. Therefore, continuous iteration of cell string welding technology and the use of thinner metalized gate wire structures will become the future development trend of photovoltaic welding tapes. Therefore, we assume that the market share of conventional welding tapes will decrease year by year; MBB welding tapes have developed and matured in recent years, and may be gradually replaced by SMBB in the future. The iterative product SMBB welding tape was sprouted in 2021 and is expected to have a low market share in 2021. However, thanks to its reduction in downstream costs and combined with the previous historical experience of MBB's rapid expansion, it is expected that SMBB's market share will rapidly increase and replace the market share of MBB and conventional welding tapes, becoming the mainstream interconnection welding tape type.
3.4 Special-shaped welding tape technology can effectively increase the power of battery components
uses special-shaped welding tape to effectively increase power and reduce costs. Special-shaped welding tape is mainly suitable for multi-gate components. On the front of the cell, circular or triangular welding tapes with enhanced reflective segments are used, and soft flat periodic segmented welding tapes are used on the back. The purpose is to improve the reflection efficiency and component power of a special-shaped structure, while reducing the spacing of the sheet, increasing the welding area, effectively reducing the occurrence of hidden cracks, greatly improving the stability of high-power components, and reducing the thickness of the packaging sleeve on the back of the component, saving costs to a certain extent. Artes Sunshine Power, a leading manufacturer in the industry, applied for this patent in 7/7, and was the first to launch photovoltaic modules with 9 main gate 166mm batteries, 182mm/210mm large-size batteries and special-shaped welding tape. The round welding tape technology of
MBB is compatible with the battery structure of 4-20 gates. It draws on the principle of conventional welding tapes. As the main gates increase, the width of welding tape continues to decrease, turning the cross-section of the flat welding tape from a square to a circle, solving the problem of inconvenient orientation, thereby facilitating mass production.The triangular welding tape technology directly uses triangular tin-plated copper-based interconnect tape to replace conventional flat welding tape, improve the loss of light transmission during the total reflection of the glass, and enables the utilization rate of incoming light to reach about 80%. At the same time, it increases the contact area and enhances the conductivity. The technological changes in the basic structure and metal structure that affect battery performance are relatively thorough, and the power has been greatly improved based on the circular welding tape. Special-shaped welding belts have developed rapidly in recent years. According to Yubang New Materials' prospectus, its sales of special-shaped welding tapes were 0.37 tons in 2019, and 's revenue accounted for only 0.01% in product . In 2021, its sales and revenue accounted for 1839.68 tons and 14.93% respectively. After its "annual production of photovoltaic welding tapes of 13,500 tons" construction project" reaches production, it will bring a production capacity of 1,200 tons of special-shaped welding tapes. In 2021, the company's gross profit margin of special-shaped welding tape was 18.83%, which is significantly higher than the gross profit margin of MBB welding tape was 7.85pct, which will help improve the company's profitability. According to Tongxiang Technology's 2022 stock prospectus, its special-shaped welding tape will be from scratch in 2021, with sales of 552.75 tons and revenue accounting for 5.37%. Its "annual production of tin coated copper tape (wire) 15,000 tons" will bring a production capacity of 4,000 tons of special-shaped welding tape after it is put into production in June 2023. More and more customers are gradually accepting special-shaped welding tapes, and the demand for special-shaped welding tapes may gradually increase in the future.
3.5 Special bus welding tape technology meets the efficient and beautiful needs of battery components
Special bus welding tape can meet the battery components' needs for aesthetic performance and reflective performance of welding tape, and improve component power. Special busbar welding tapes mainly include black busbar welding tapes and reflective busbar welding tapes. The reflective bus welding tape optimizes the surface structure of the welding tape by combining the reflective film on the surface, applying a high-reflective coating on the surface, and calendering the surface of the welding tape, and using the sunlight irradiated to the surface of the welding tape to increase the total amount of light received by the battery, further increasing the power of the photovoltaic module. The extra black busbar welding tape is suitable for all black components, covering the surface of the welding tape with a black coating to maintain the consistency of the appearance of the welding tape, the component frame and the battery cell, and can help all black photovoltaic modules to achieve more efficient automated production efficiency and better overall aesthetic performance, and reduce optical pollution. The production of black bus welding tape and reflective bus welding tape requires special equipment and high-tech operators, and the equipment costs and technical barriers are high. Currently, only a few companies can achieve R&D and production (such as Yubang New Materials, Tongxiang Technology, etc.), with outstanding competitive advantages and relatively strong bargaining power. In the future, special busbar solder tape will further enhance performance and reliability, helping to increase the power gain at the component end.
Special bus welding tape has a high gross profit margin, strong profitability and wide growth space. According to the data from Yubang New Materials Prospectus, the unit price of black commuter welding tape in 2021 is 179.56 yuan/kg, with a gross profit margin of 34.05%; the unit price of conventional commuter belt is 80.45 yuan/kg, with a gross profit margin of 9.19%. Black welding tape is priced higher and has stronger profitability. The gross profit margin is higher than conventional bus welding tape, which increases the overall gross profit margin of bus welding tape. From 2019 to 2021, the sales volume of Yubang New Materials black welding tape increased significantly from 17.09 tons to 140.43 tons, and the sales revenue accounted for 4.48% of the revenue of the crowded welding tape increased from 8.71%. According to Tongxiang Technology's 2022 stock prospectus, its reflective welding tape volume is still small in 2021, and the sales volume of black welding tape has increased to 158.67 tons, accounting for 3.22%. Its "annual production of tin-coated copper tape (wire) 15,000 tons" will bring the production capacity of 2,200 tons of reflective busbar welding tape and 800 tons of black busbar welding tape after it is put into production in June 2023. The black welding belt product has significant advantages. As the company increases its R&D, promotion and the increase in demand for black components, the sales and sales share of black convergence belts are expected to further increase.
3.6 The development of main gateless technology drives the research and development of high-precision low-temperature welding tapes
main gateless technology can further reduce battery costs and increase efficiency. The main gateless technology uses the main gate to remove the main gate and leave the fine gate, and replace the silver main gate with copper wire with special coatings, allowing more and thinner welding tapes to directly connect the thin gate of the battery, which can reduce silver consumption, expand the battery's photoreceiving and power generation area, reduce hidden cracks, reduce resistance losses, and achieve cost reduction and efficiency improvement of the battery.There are two main gate-free technology implementation methods: one is to replace the main gate with a copper wire conductive film, and the other is to directly replace the main gate with a copper wire. The conductive film instead of the main gate is now a technical patent of the Swiss Meyer Burger Company. Its name is SmartWire. It refers to the technology without the main gate technology that only screen-printed thin grid lines and uses a polymer film embedded in copper wire to replace the main gate covering the front of the battery. The copper wire and the thin grid are combined through the pressure and temperature of the component laminator, which collects one end of the copper wire onto a wider busbar and connects it to the back of the adjacent battery. This technology is successfully applied to heterojunction batteries. The copper wire instead of the main gate is a set of main gateless technology developed by German solar equipment manufacturer Schmid. The copper wire is directly laid on the pad of the thin grid on the battery surface, and then soldered and laminated.
main gate technology requires higher precision micro-scale, low melting point welding belts, driving photovoltaic welding belt enterprises to improve research and development. The ultra-fine welding tapes in Yubang New Materials in the small trial stage can be used to match smaller solder joint designs or HJT batteries without main gates, which can reduce the amount of silver paste and reduce sun occlusion. This welding tape uses low-temperature solder and can be ultra-low-temperature welding to achieve an integrated "lamination-welding" process and promote efficiency and cost reduction at the component end.
4 Key companies analyze
4.1 Yubang New Materials: Leading the photovoltaic welding belt industry, enjoying the high demand
focuses on the main advantage business, and its performance has grown steadily. The company's revenue increased from RMB 553 million in 2018 to RMB 1.239 billion in 2021, with a CAGR of 30.83%, and its net profit attributable to shareholders increased from RMB 33 million in 2018 to RMB 77 million in 2021, with a CAGR of 32.64%. Thanks to efficiency improvement and lean management, the cost rate has shown a downward trend, down from 8.64% in 2015 to 4.43% in 2022Q1. From 2018 to 2020, the company's MBB welding tape sales accounted for 68.35% of the sales volume of interconnected welding tapes increased from 2.36% to 68.35%, driving the gradual increase in gross profit margin. In 2021, the company's gross profit margin was under pressure due to the rise in raw material prices. The company's original production capacity is 16,300 tons. It is expected that with the annual production of 13,500 tons of photovoltaic welding tape and other fundraising projects, the company's production capacity will increase significantly, driving rapid growth in performance and marginal increase in gross profit margin.
technology is leading and funding barriers are superimposed, and the competitive landscape is improving. The company has been deeply engaged in the field of photovoltaic welding tape for 16 years and is leading in the R&D technology industry. It has currently obtained 83 patents, ranking first in the industry. The company's product design keeps pace with changes in downstream market demand, with a market share of about 17% in 2020. With its technological R&D advantages, it has taken the lead in high-end products such as MBB welding tape, low-temperature welding tape, and opposite-sex welding tape, and has occupied a major market share. In addition, due to the high liquidity of welding tape products, small enterprises in the industry have cleared out due to the sharp fluctuations in raw material prices in 2021. It is expected that the company's market share will further increase and the leading share will be stable. The rapid growth of photovoltaic installed capacity has driven the demand for photovoltaic welding tapes. Stimulated by the dual-carbon policy, the global photovoltaic power generation market has developed rapidly, and the high prosperity in the downstream sector has driven the rise in demand for the photovoltaic welding belt industry. According to CPIA's forecast, the global installed capacity of photovoltaics will grow from 170GW in 2021 to 440GW in 2025; according to our forecast, under the three conditions of 500 tons, 550 tons and 600 tons of photovoltaic welding tapes required for 1GW photovoltaic modules, the global demand for photovoltaic welding tapes in 2021 will grow from 85/935/10200 tons to 22/2420/264000 tons in 2025, and the CAGR from 2021 to 2025 will be 26.84%. As a leading photovoltaic welding tape company, the company is expected to enjoy the high prosperity of the industry.
4.2 Tongxiang Technology: a benchmark in the photovoltaic welding belt industry, with a significant growth curve
operating performance grew rapidly, and profitability rebounded. In recent years, the company has expanded its production capacity and actively expanded its downstream customers, with production and sales increasing at the same time, and operating performance has grown rapidly. The company's revenue increased from RMB 244 million in 2017 to RMB 803 million in 2021, with a CAGR of 35%, and its net profit attributable to shareholders increased from RMB 10 million in 2017 to RMB 54 million in 2021, with a CAGR of 52%. In 21, due to the rise in raw material prices, the company simultaneously increased its sales price, with annual revenue increasing by 28.45% year-on-year, and net profit attributable to shareholders decreased by 10.25% year-on-year. In 22 years, as raw material prices ease, the company is expected to further expand its market share as the downstream resumes high growth, and its profitability rebounds are imminent.High-end products adapt to the needs of large customers and highlight their competitiveness. In the first half of 2021, the company launched triangular welded belts with industry-leading levels. While having high light absorption, it also has higher reliability and stability, which meets the needs of front-line customers such as Longi and Artes in the downstream market. It is expected to achieve large-scale production in 2022. At the same time, the company adopts a large customer strategy and focuses on first-line manufacturers in the component industry. While increasing the company's market share, it also effectively reduces sales costs. In order to adapt to the large-scale expansion needs of leading customers, the company continues to expand its production capacity, and it is expected to have stronger market competitiveness as the market share of leading components increases.
takes advantage of the industry's east wind, and the implementation of production capacity will open up room for growth. The 10,000 tons of production capacity of the company's listing fundraising investment has been completed by the end of 2021, providing a capacity basis for the rapid development of the company's business. As the first batch of additional issuance companies of the Beijing Stock Exchange, in December 2021, the company also launched a 15,000-ton welding belt fundraising project, and will build a new production capacity of 9,000 tons of SMBB welding belt, 3,000 tons of special-shaped welding belt and 3,000 tons of reflective crowded welding belt, further meeting the market's continued growth demand for high-performance welding belts. With the implementation of the dual-carbon policy, the global photovoltaic power generation market has developed rapidly, and the high prosperity in the downstream fields has driven the rise in demand for the photovoltaic welding belt industry. The company is expected to take advantage of the industry's east wind and the production capacity will be gradually realized in 22-23 years.
(This article is for reference only and does not represent any of our investment advice. If you need to use relevant information, please refer to the original text of the report.)
selected report source: [Future Think Tank]. Future Think Tank - Official Website
