(Report producer/author: Huaan Securities, Wang Hongyan)
. Lithium battery copper foil: lithium battery negative electrode current collector, high technical and technological requirements 1.1 Lithium battery copper foil is the core material of lithium battery negative electrode current collector
What is electrolytic copper foil ? As a functional key basic raw material in the electronic manufacturing industry, electrolytic copper foil is mainly used in the production of lithium-ion battery and printed circuit boards. It can be further divided into lithium battery copper foil and standard copper foil according to different application fields. The widespread application of lithium batteries has become the main highlight of the growth of electrolytic copper foils. This article will also focus on analyzing the supply and demand pattern of lithium battery copper foils and the technological development trends. Among lithium battery cell materials, the cost of lithium battery copper foil accounts for 5%-8%, which is an important part of the supply chain layout of power battery companies; it is not only the carrier of negative electrode active material, but also the negative electrode electronic collection and conductor, and its main function is to gather the current generated by battery active substances to generate a larger output current. Because lithium battery copper foil has the characteristics of good conductivity and mechanical processing performance, soft texture, mature manufacturing technology, and outstanding cost advantages, it has become the first choice for the negative electrode fluid of lithium-ion batteries, and the possibility of being replaced is low.
Depending on the application field, electrolytic copper foil can be divided into lithium battery copper foil and standard copper foil. Lithium-battery copper foil mainly refers to copper foil used as current collectors in lithium-ion batteries. The current mainstream products in the market have specifications of 6μm and 8μm; standard copper foil mainly refers to copper foil used in printed circuit boards (PCBs). It is generally thicker than lithium-battery copper foil, mostly between 12-70μm. According to CCFA data statistics, in 2020, standard foils accounted for 69% of domestic electrolytic copper foil production and 31% of lithium battery copper foils. Among them, lithium battery copper foils continue to increase due to the high prosperity of downstream new energy sources.
According to the thickness of the copper foil, it can be divided into extremely thin copper foil (≤6μm), ultra-thin copper foil (6-12μm), thin copper foil (12-18μm), conventional copper foil (18-70μm) and thick copper foil (>70μm). At present, domestic lithium-ion batteries are mostly used in 6μm products in extremely thin copper foils. Driven by increasing energy density and reducing the cost of kilowatt-hours, "extreme thinning" has driven the research and development and application of 4.5μm products. During the production process, the thickness of the copper foil is mainly controlled by adjusting the size of the DC and the rotation speed of the cathode roller.
can be divided into double-sided light copper foil, double-sided matte copper foil, double-sided thick copper foil, single-sided matte copper foil and ultra-low profile copper foil (VLP copper foil). The glossy surface of the copper foil is a mirror reaction on the surface of the cathode roller, and the bristle surface is the opposite side of the glossy surface. Among them, the double-sided photoelectrolytic copper foil has the characteristics of double-sided structure symmetry, extremely low surface profile, high elongation and tensile strength ; compared with single-sided and double-sided lithium battery copper foil, when it is pasted with the negative electrode material, the contact area increases exponentially, which can significantly reduce the resistance between the negative electrode current collector and the negative electrode material, and improve the volume capacity and structure symmetry of the lithium-ion battery battery. At the same time, the negative electrode current collector of the double-sided photoelectrolytic copper foil has good cold and heat expansion resistance, which can significantly extend the battery life.
1.2 Lithium battery copper foil technical indicators are complex and high requirements
With the development of electronic products miniaturization and cutting-edge, and the new energy vehicles have higher requirements for the battery life and safety of power, lithium-ion batteries are also developing towards high capacity, high density and high speed, and the requirements for battery materials have also increased. High-performance lithium-ion copper foil is about to emerge, and the overall technical performance is improved, including but not limited to the apparent quality, physical properties, stability and uniformity of copper foil, which are closely related to battery performance.
1) Thickness: affects the energy density of the battery. The thinner the thickness, the higher the energy density. According to our calculations, the energy density of 6 μm and 4.5 μm lithium battery copper foil is 240.49Wh/kg and 248.98Wh/kg respectively. Compared with 8 μm copper foil, 8.82% can increase the energy density by 5.11% and 8.82% respectively;
2) Tensile strength and elongation rate: affect the yield rate of negative electrode production, battery capacity, internal resistance and cycle life, etc.When making the negative electrode of a lithium ion battery, the electrode coated with active material will be carried out during the rolling and calendering and flattening process, if the tensile strength of the copper foil is low, it will easily lead to poor electrode dimensional stability and flatness, and it will easily cause copper foil to break; if the elongation of the copper foil is low, the contact between the copper foil and the active material will be deteriorated, and the copper foil itself will generate internal stress and cracks will appear.
3) Surface roughness (contour): affects the internal resistance of the battery and cycle life, etc. The copper foil itself requires a certain rough surface to make the negative electrode material better adhere to the surface of the copper foil without falling off. However, the higher the roughness, the better. As the surface roughness increases, the contact performance of the negative electrode material will be deteriorated, causing the adhesion of the negative electrode active material to decrease on the copper foil surface, thereby making the coated active material more likely to fall off, directly affecting the performance of battery internal resistance and cycle life;
4) Thickness uniformity: affects battery consistency, stability and capacity. Inconsistent uniformity will affect the actual amount of active substance applied to the negative electrode electrode, and the mass fluctuation of the negative electrode coated active substance will have a direct impact on the battery capacity and consistency;
5) Copper foil surface quality: If there are defects on the surface of the copper foil, such as stripes, depressions, wrinkles, pinholes, spots and mechanical damage, it will cause the adhesion of the negative electrode material on the copper foil to decrease, and the exposed foil spots appear after coating. The coating of the active material on both sides will have a great impact on battery performance such as capacity, internal resistance, , cycle life, etc., and even directly lead to serious problems such as electrode scrapping.
6) Oxidation resistance and corrosion resistance: affects conductivity, etc. ① The surface of the copper foil is prone to oxidation reaction with the oxygen in the air to form an oxide film. The surface oxide film is a semiconductor and electrons can be turned on. However, if this passivation film is too thick and the impedance is large, it will increase the internal resistance of the battery, thereby reducing the capacity of the lithium-ion battery. On the contrary, if the oxide film layer of the copper foil is relatively loose, the adhesion ability of the negative electrode active material will be weakened. Therefore, in the manufacturing process, the lithium battery copper foil must take measures to increase its oxidation resistance to maintain good conductivity. ② The organic electrolyte used in lithium-ion batteries is highly corrosive. In order to maintain the stability of the chemical properties of the copper foil and the performance of electrochemical , the copper foil needs to have strong corrosion resistance.
7) porosity : affects the adhesion of the negative electrode active substance on the surface of copper foil.
1.3 Electrolytic copper foil manufacturing process
1.3.1 Four major manufacturing processes: copper dissolving, raw foil, post-treatment and slitting. Raw foil is the core
electrolytic copper foil manufacturing process has four main processes, including copper dissolving, raw foil, post-treatment and slitting processes.
① Copper dissolving: mainly involves the preparation of electrolyte. In the special liquid making tank, copper material is made into copper sulfate solution with sulfuric acid and deionized water , providing electrolyte that meets the process standards for the foil production process.
②Foiling foil: The core equipment is a foil growing machine, and the core component of the foil growing machine is a cathode roller. In the electrolytic cell of the foil sulfate electrolyte, under the action of direct current, copper sulfate electrolyte obtains electrons and is electrodeposited on the surface of the cathode roller to make the original foil. After continuous rotation, pickling, water washing, drying, peeling and other processes of the cathode roller, the copper foil is continuously peeled and rolled to form a rolled original foil.
③ Post-treatment: After the original foil is subjected to surface treatment processes such as pickling and organic anti-oxidation, the product technical indicators meet customer requirements.
④ Slitting: According to the customer's requirements for the quality of the copper foil, width , weight, etc., the copper foil is slimmed, inspected and packaged. The difference in manufacturing processes between standard foil and lithium battery copper foil is mainly in the post-treatment process.
standard copper foil is the same as the pre-production equipment and production processes of lithium battery copper foil (including copper dissolved, raw foil and slitting processes). The main difference is the late-stage antioxidant treatment process, where the standard copper foil uses electroplating technology and needs to go through steps such as coarse, curing, ashing, passivation and multiple water washing, while lithium battery copper foil uses chemical materials for surface antioxidant treatment.The reason for this difference is mainly because the PCB board and lithium battery have different functional requirements for copper foil. The copper foil in lithium battery is only to collect and conduct current, so that the larger the current, the better. The PCB board also needs to etch and print circuits on the copper foil. The copper foil has higher requirements for conductivity, and the current needs to be conducted on the copper clad plate according to the prescribed route, which has higher requirements on the surface of the standard foil.
1.3.2 Additive formula + equipment modulation construction product knowledge-how
demand drives technological innovation, process technology has a strong correlation with the stability of copper foil product quality. Production process technology is reflected in the requirements for production equipment, electrolytes, additives, process formulas, operating methods, etc.
Take Jiayuan Technology as an example. In terms of electrolyte and additive control technology, the company has accumulated rich process knowledge. Indicators in electrolyte and additives, including DC density, electrolyte temperature, pH value of electrolyte, cleanliness of electrolyte , and additive selection and formula, etc., directly affect whether the produced copper foil meets high-quality needs. In particular, additives (main functions include: refining the smoothing effect of grains, reducing the surface tension between the electrode and solution, and improving the surface wettability of the electrolyte to the electrode, etc.), as one of the most important control factors, determines the product performance and use of copper foil.
In terms of production control technology, copper ion concentration, sulfuric acid concentration, electrolyte temperature, electrolyte flow rate, flow volume, additive selection, combination and addition method, current density, etc., each parameter affects each other and plays independently. Therefore, the manufacturer needs to have the ability to dynamic monitoring and real-time adjustment to ensure the high quality of the product to the greatest extent. (Report source: Future Think Tank)
. What is the demand trend of lithium battery copper foil? 2.1 It has reached its peak and reached its peak. The trend is that the development of the copper foil industry has experienced the evolution of production processes. From the improvement of the traditional calendering process to the current electrolytic process, it significantly reduces production costs and improves the quality of copper foil products; in the future, extreme thinning will continue to become the development direction of lithium battery copper foil. Looking at the entire industry, the trend of extreme thinning is extremely significant: in 2016, domestic power batteries mainly used 9-12μm copper foil products; in 2017, 8μm products gradually became mainstream products; in the second half of 2017, 6μm products began to enter the market, and subsequently the market share continued to increase; in 2020, 4.5μm copper foil entered the mass production period, and some domestic leading enterprises have the ability to supply on a large scale. By sorting out the upgrade path of Jiayuan Technology's product structure, we also found that the product research and development and production process of extremely thin copper foil is also accelerating.
We believe that there are four logics that support the improvement of the penetration rate of extremely thin lithium battery copper foil : 1) The demand for battery energy density is driven by extremely thin; 2) The demand for downstream battery companies to reduce costs is driven by extremely thin; 3) The extremely thin copper foil increases product premium; 4) The equipment technology breakthrough of downstream battery manufacturers such as CATL .
Support logic 1: Battery energy density increases and demand drives extreme thinning.
battery energy density is related to the battery life of electric car . It can be said that the battery life and mileage are important factors that restrict the development of electric vehicles. Therefore, increasing battery energy density has become an inevitable choice for lithium battery manufacturers. The energy density of lithium batteries is basically determined by the positive and negative electrodes of the battery. Simple positive and negative electrode active materials cannot guarantee that the battery can generate electricity. The battery must have inactive substances such as electrolyte, isolation film, , binder, conductive agent, current collector, matrix, shell material, etc., so as to obtain a stable, continuous and safe electrical energy carrier. We can describe it in this way that the positive and negative active materials are equivalent to "red flowers", while the non-active materials are "green leaves". With the contrast of green leaves, red flowers can complete the task better. However, if the weight of green leaves can be reduced while ensuring that the green leaves can still set off the red flowers, then the remaining space can add more red flowers, making the flowers more bright.In the proportion of lithium battery mass at the beginning of this article, we can see that the part of the mass other than the positive and negative electrode materials accounts for 60% of the battery, which contains space to increase the active substance and increase the energy density of the battery.
qualitatively, by reducing the thickness of the copper foil, it is possible to increase the amount of active material when the battery cell volume remains unchanged, and then increase the slurry coating thickness, thereby increasing the energy density of the battery cell and ultimately increasing the car's range.
quantitatively, compared with 8μm copper foils with 6μm and 4.5μm can increase the mass energy density by 5.11% and 8.82%. According to the calculation formula of the mass energy density of lithium batteries: mass energy density = battery capacity/battery mass. That is, in theory, the battery mass can be reduced to improve the mass energy density by keeping the battery capacity unchanged; or the battery capacity can be increased by keeping the battery mass unchanged. The extremely thin lithium battery copper foil can improve energy density in the first way; at the same time, thinner lithium battery copper foil can also reduce the internal resistance of the battery and achieve better battery performance. According to our calculations, the energy density of 6μm and 4.5μm lithium battery copper foils is 240.49Wh/kg and 248.98Wh/kg respectively. Compared with 8μm copper foils, 8.82% can increase the energy density by 5.11% and 8.82% respectively.
We calculate based on the following assumptions:
1) Unit area mass: According to the data of Lingbao Huaxin official website, the unit area mass of 8μm, 6μm and 4.5μm lithium battery copper foil is 72 g/m, 54 g/m, and 40 g/m, respectively;
2) Lithium battery copper foil area single consumption: Assuming that under different copper foil thicknesses, the area of copper foil used per unit energy is the same, all of which are 11.81 ㎡/kWh;
3) Lithium battery copper foil quality single consumption: According to the calculation of the China Nonferrous Metals News, the unit mass consumption of 8μm copper foil is 830-1000g/kWh, conservatively calculated, calculated based on 850g/kWh; 6μm and 4.5μm copper foil The mass unit consumption of 8μm lithium batteries is 228.80Wh/kg. According to the monthly data of the China Automobile Power Battery Industry Innovation Alliance, the bicycle charge of pure electric passenger cars in October 2021 was 47.6kWh;
5) The mass energy density of lithium battery copper foil: According to CCFA data statistics, the mass energy density of 8μm lithium batteries is 228.80Wh/kg. Based on this, the quality of 8μm lithium batteries and the quality of lithium battery material other than copper foil is calculated;
6) Assuming that in the battery quality, except for the copper foil, other battery materials and battery packaging are the same quality;
Support logic 2: Downstream battery companies reduce costs and drive extremely thinness.
Qualitatively, although the processing costs of copper foil of 6μm and 4.5μm may be higher than that of 8μm, the reduction in the thickness of copper foil will cause greater cost reduction space than the "increase of processing costs", so the cost of bicycle copper foil with extremely thin copper foil is more cost-effective. Driven by the demand for cost reduction, downstream battery manufacturers have a strong motivation to develop and produce extremely thin copper foils.
quantitatively, we learned that the copper foil usage of electric passenger cars using 8μm/6μm/4.5μm copper foil is 40.6kg/30.3kg/23.6kg respectively; the pricing of copper foil is based on "copper price + processing fee": in terms of copper price, according to the information disclosed in the announcement of listed companies, the average copper price of Yangtze River Nonferrous Metal Network html July 2019 is mostly used as the basis for pricing. According to the recent copper price trend, the copper price is set to 70,000 yuan/ton; in terms of processing fee, according to data from public information sources such as Shanghai Nonferrous Network, the processing fee of 8μm/6μm/4.5μm copper foil is set to 36,000 yuan/ton, 46,000 yuan/ton, and 75,000 yuan/ton, respectively. According to the above settings, the cost of copper foil for electric vehicles using 8μm/6μm/4.5μm copper foil is RMB 4293, RMB 3515, and RMB 3422, respectively. The cost of 6μm and 4.5μm copper foil is 18.1% and 20.3% compared with electric vehicles using 8μm copper foil.
Support logic three: Extremely thin copper foil increases product premium.
qualitatively, the pricing model of copper foil products is "copper price + processing fee", among which copper prices are basically based on m-1 price, and copper price fluctuations can be quickly transmitted to downstream customers, so copper price fluctuations have little impact on the gross profit of copper foil manufacturers.In terms of processing fees, taking the lead in achieving extremely thin copper foil production will allow enterprises to enjoy more technical premiums, have higher gross profit margins and stronger pricing power, and encourage copper foil companies to accelerate the expansion of extremely thin copper foil production capacity.
quantitatively, it is not difficult to find through the changing trend of copper foil processing fees of different thicknesses that the 6μm copper foil processing fee always widens the gap with 8μm copper foil, but the gap is narrowing. At present, the processing fees of 8μm/6μm/4.5μm copper foil are 36,000 yuan/ton, 46,000 yuan/ton, and 75,000 yuan/ton, respectively. According to Chen Yubi, vice president of Nord Co., Ltd., at the Gaogong Lithium Electricity Summit, the use of 4.5μm copper foil in H1 CATL in 2021 is about 600-700 tons/month, and H2 has increased to about 2,000 tons/month, and the penetration rate is expected to increase from 3% to more than 10%; AVIC Lithium Battery , Guoxuan Hi-Tech , Yiyi Lithium Energy , BYD , Lishen , etc. are further increasing their penetration rate of 6μm copper foil; the current 6μm penetration rate of leading power battery companies exceeds 90%, and the penetration rate of 6μm copper foil of other power battery companies is also increasing rapidly. The rapid increase in lightweight and high processing costs are driving leading copper foil manufacturers to accelerate the production of thinner copper foil products.
light and thin copper foil has a higher gross profit margin, and high profits also drive copper foil manufacturers to produce extremely thin copper foils. Taking Zhongyi Technology as an example, in H1, in 2021, the gross profit margins of 8μm and above, 6μm and 4.5μm products were 21.47%, 29.27%, and 39.70%, respectively. The gross profit margins of 6μm and 4.5μm copper foils were 7.80pct and 16.23pct higher than those of 8μm and above copper foils, respectively.
Support logic 4: Equipment technology breakthroughs for downstream battery manufacturers such as CATL.
CATL took advantage of its advanced R&D advantages to be the first to introduce extremely thin copper foils of 6μm and 4.5μm and order goods in bulk from copper foil manufacturers. The coating process is an important technical obstacle for lithium battery manufacturers to transition from 8μm to 6μm. The coating process is to apply the stirred slurry on copper foil. The most important thing is the consistency of the thickness and weight of the slurry. The extremely thin copper foil is easy to have broken tapes and pleats during the coating process. The coating also requires avoiding dust particles mixing into the electrode sheet. CATL was the first to develop and design an coater , which is specially used for 6μm extremely thin copper foil and the world's first 6μm extremely thin copper foil high-speed winding machine. In 2018, it solved the application problem of 6μm extremely thin copper foil, and in 2019, it used 6μm extremely thin copper foil as the main negative electrode current collector of powered lithium-ion batteries. CATL also introduced 4.5μm copper foil into battery production since 2020. It can be said that the equipment technology breakthroughs of downstream lithium battery manufacturers such as CATL are an important factor in the rapid increase in demand for extremely thin copper foils.
2.2.1 The ceiling of the lithium battery industry is constantly improving, and the growth momentum switch
simply traces the development history of lithium batteries, which can be roughly divided into three stages:
1) (1991-2000): Lithium batteries have made up for the pain points of secondary batteries in the consumer electronics field with their energy density, cycle life and performance improvements. In 10 years since Sony first achieved the commercialization of lithium batteries in 1991, Japanese companies monopolized the global market with their technical patents. In 2000, Japanese companies had a market share of up to 93%.
2) Japan and South Korea compete for the dominance (2001-2010): During this period, the rise of consumer electronic products such as mobile phones and Walkman made the market of the lithium battery industry grow rapidly, and Japanese companies' technology upgrades are slow and began to spill over. South Korea's Samsung and LG seized the opportunity. The open supply chain system and capacity expansion advantages helped Korean companies quickly occupy market share. In 2010, Japan and South Korea's market share were 43% and 39% respectively, and the lithium battery industry formed a pattern of japanese and South Korea's competition. During this period, China took over the processing capacity of the lithium battery industry chain by relying on its cost advantages such as labor. Companies such as Shanshan Technology, Berry, Dangsheng Technology and have all accumulated strength from this period and learned production and management experience from scratch.
3) Raising big fish in large waters, and switching growth momentum (2011 to the present): Switching from consumer electronics to new energy vehicles is the main theme of this period, and the power battery track has become a must-fight place for military strategists. Smartphone and tablet shipments surged and fell, and consumer electronics' demand for lithium batteries grew weakly. In 2016, in the lithium battery shipment structure, power batteries accounted for more than digital batteries.In recent years, countries have begun to vigorously develop the new energy industry, and new energy vehicles have also become the industry promoted by policies. Economy has gradually become the support for the growth of demand for new energy vehicles. In 2020, thanks to the growth of demand for lithium batteries in emerging industries and fields such as new energy vehicles, energy storage, electric bicycles, and power tools, China's lithium battery shipments were 142.9GWh. The demand for new energy vehicles has completely ignited the demand for lithium batteries, the market ceiling has increased again, and large waters have raised big fish, and the demand for lithium batteries and copper foil from battery factories has continued to rise.
2.2.2 The new energy vehicle market has expanded, and the copper foil industry is very growth-oriented
The new energy vehicle market has broad space. In the first October of 2021, domestic sales volume was 2.54 million vehicles, and power batteries have become the main driving force for the increase in demand for lithium batteries and copper foil. According to data from the China Association of Automobile Manufacturers, China's new energy vehicle sales reached 2.542 million from January to October 2021, which is nearly twice the annual sales of 1.367 million vehicles in 2020; at the same time, the penetration rate of new energy vehicles exceeded 10% from January to October, and the growth of new energy vehicle production and sales volume and the accelerated penetration rate have created a good foundation for future growth space.
New energy vehicles have become the key areas of industrial development strategies in countries around the world:
(1) China: According to the "New Energy Vehicle Industry Development Plan (2021-2035)" issued by the State Council, by 2025, the sales volume of new energy vehicles will reach about 20% of the total sales of new cars; "Energy-saving and New Energy Vehicle Technology Roadmap 2.0" compiled by of the China Automobile Engineering Society clearly states that by 2025, 2030 and 2035, the sales volume of new energy vehicles will reach 20%, 40%, and 50% respectively. According to data from the China Association of Automobile Manufacturers, the penetration rate of new energy vehicle sales in the first half of 2021 is only 10%, and there is a lot of room for new energy vehicle replacement in my country in the next few years.
(2) Europe: The increase in supply and subsidies drives the increase in sales of new energy vehicles. On the one hand, European countries have generally increased the government subsidy for new energy vehicles. Taking Germany as an example, subsidies have gradually increased from the maximum amount of 2,000 euros in 2019 to 9,000 euros. On the other hand, major European countries have successively announced a timetable for banning fuel vehicles, the earliest of which is in 2025 and the latest will be fully banned in 2040.
(3) United States: On August 5, 2021, Biden signed an executive order, declaring that it will take measures to promote the United States' leadership in cleaning cars and trucks, with the goal of increasing the proportion of new energy vehicles in new cars and small trucks to 50% by 2030. On November 19, 2021, the U.S. House of Representatives passed a 1.75 trillion yuan expenditure plan, including the New Energy Vehicle Tax Credit Act, which plans to provide up to $12,500 in tax credits for electric vehicles. The credit policy also requires the signing of the Senate and President Biden. Starting from 2022, electric vehicles in the United States are expected to show a big explosion.
New forces in car manufacturing are accelerating their development, and traditional car companies are entering the new energy vehicle track. In terms of the current market structure of new energy vehicles, Tesla has the highest market share and ranks first. According to EV Sales data, Tesla's global market share of new energy vehicles is 16.64%, and Chinese new energy vehicle manufacturers such as NIO , Ideal, and Xiaopeng also occupy a certain market share. Due to the promotion of policies of countries to restrict or ban the sale of fuel vehicles, the living space of traditional car companies has been squeezed. Faced with the blue ocean market of new energy vehicles, traditional car companies have also entered the new energy vehicle track. (Report source: Future Think Tank)
2.3 Domestic copper foil market space calculate
2.3.1 Related assumptions
1) Penetration rate of lithium iron phosphate battery : The reason for setting the permeability of lithium iron phosphate batteries is mainly because the single GWh copper foil consumption of lithium iron phosphate batteries and ternary batteries is different. Before 2019, the country provided precise subsidies to the new energy vehicle industry, and energy density is an important inspection standard. With the advantages of high energy density and long battery life, the penetration rate of ternary batteries continued to increase.
. With the decline in subsidies, cost reduction has become an important demand for the car manufacturers. Lithium iron phosphate batteries use iron instead of nickel and cobalt. The cost advantage is highlighted. With the support of CTP, blades, JTM and other technologies of the battery factory, the penetration rate of lithium iron phosphate batteries continues to increase. Among the top ten domestic new energy vehicles in monthly sales, popular models such as Hongguang MINI, Tesla Model 3, and BYD Song all use lithium iron phosphate batteries, which can also indirectly prove the increase in the penetration rate of iron phosphate batteries.
According to the above qualitative analysis, we assume that the penetration rate of domestic power battery lithium iron phosphate batteries will gradually increase from 50% to 55% from 2021 to 2025.
2) 1GWh copper foil consumption: Considering that lithium iron phosphate batteries need to consume more copper foil, assuming that a 1GWh ternary battery consumes 900 tons for 8μm copper foil and 700 tons for 6μm copper foil; assuming that a 1GWh lithium iron phosphate battery consumes 950 tons for 8μm copper foil and 750 tons for 6μm copper foil.
3) The permeability of copper foils of different specifications: Since the current 4.5μm copper foil is only used in small batches in CATL, the current extreme thinning is still mainly in penetration from 8μm to 6μm. Assuming that the penetration of 6μm domestic copper foil will gradually increase from 70% to 93% from 2021 to 2025, and the penetration of 6μm overseas copper foil will gradually increase from 20% to 48% from 2021 to 2025.
4) For safety reasons, it is assumed that 8μm lithium battery copper foil is used.
2.3.2 Lithium battery copper foil demand calculation
According to our calculations, it is estimated that from 2021 to 2025, the global demand for lithium battery copper foil will reach 33.03/44.45/53.70/64.89/7892 million tons respectively, and CAGR=30.05% in the next five years.
. The expansion of production is limited and the mismatch between supply and demand, tight balance and improve the prosperity 3.1 Leading manufacturers are actively expanding production, but there is still a supply and demand gap in the next two years
. In terms of production, the global shipment of lithium battery copper foil reached 183,000 tons, of which the domestic shipment was 99,000 tons, accounting for more than 54%. According to statistics from Gaogong Lithium Battery, in 2020, the global and domestic production of lithium battery copper foil will be 183,000 tons and 99,000 tons respectively, and it is expected to reach 704,000 tons and 370,000 tons respectively in 2025, with a 5-year CAGR of 30.9% and 30.2% respectively.
In terms of domestic product structure, 8μm still maintains steady growth, 6μm quickly becomes the mainstream product, and 4.5μm has appeared manufacturers that can be mass-produced. According to CCFA data statistics, in 2020, the output of 8μm products was 66,700 tons, accounting for 44%; the output of 6μm products was 52,400 tons, accounting for 34%; the output of 4.5μm products was 4,700 tons, accounting for 3%. The output growth in 2020 was mainly in 8μm products, and the output and proportion of 6μm products decreased slightly. Mainstream manufacturers began to mass-produce 4.5μm products, among which Nord and Jiayuan both produced more than 1,000 tons.
is implemented in the production of mainstream domestic manufacturers. In 2020, the domestic lithium battery copper foil production reached 153,400 tons, an increase of 10.8% year-on-year. According to CCFA data statistics, the top three domestic manufacturers' lithium-ion copper foil production in 2020 were Longdian Huaxin, Nord Co., Ltd. and Jiayuan Technology, with outputs reaching 43,500 tons, 20,400 tons and 14,300 tons respectively. The market concentration of the top three reached 50.96%. In terms of production capacity, according to our estimates, the global effective production capacity of lithium battery copper foil in 2020 will be 257,000 tons, and the domestic effective production capacity will be 195,000 tons.
Many institutions in the market have given data on lithium battery copper foil production capacity: Taking the 2020 data as an example, the global production capacity calculated by EV Tank is 350,000 tons. According to the proportion of 69%, the domestic production capacity is 242,000 tons; the domestic production capacity calculated by Shanghai Nonferrous Network is 216,000 tons; the domestic production capacity calculated by CCFA is 229,000 tons; the domestic production capacity calculated by China Business Industry Research Institute is 300,000 tons.The reason for this difference is, on the one hand, because the statistical methods of various institutions are inconsistent. Some institutions calculate based on the capacity summation of major enterprises, while some institutions calculate through sampling statistics and other methods; on the other hand, because there are differences in statistical scope, some estimates are for nominal capacity, and some are for effective capacity. The estimates of the proportion of effective capacity in nominal capacity are also different; in addition, some enterprises have not announced the proportion of lithium battery copper foil capacity in copper foil capacity, and there are also dynamic changes in the production capacity of standard foil and lithium battery copper foil, which will also cause some estimation differences.
We have calculated the production capacity of lithium battery copper foil based on public information and the sorting of the production capacity of lithium battery copper foil manufacturers. The calculation is based on the following assumptions:
1) When the enterprise calculates production capacity, the original foil is used as a statistical indicator, and the final supply of finished copper foil will be provided, and there will be certain losses during the period. It is assumed that the comprehensive yield rate is 75%, and it will gradually increase slightly.
2) Copper foil manufacturers need to gradually debug and produce to effectively utilize the capacity. In addition, the capacity of the standard foil to lithium battery copper foil needs to be technically reformed before it can be used. Some production capacity of 6μm or less cannot be effectively mass-produced. Assuming that the capacity utilization rate is 80%.
According to our estimates, it is estimated that from 2021 to 2023, the domestic effective production capacity will be 232/329/399,000 tons, with a year-on-year growth rate of 18.9%/41.7%/21.2%; the global effective production capacity will be 321/421/495,000 tons, with a year-on-year growth rate of 25.0%/31.2%/17.4%.
Domestic (mainland) production capacity accounts for 76% of the global production capacity, and the production capacity in other regions is mainly South Korea, Japan, China and Taiwan. The lithium battery copper foil production capacity is concentrated in China, and the top three manufacturers of Nord Co., Ltd., Lingbao Huaxin and Jiujiang Defu are all domestic manufacturers.
Both at home and abroad have plans to expand production, and domestic manufacturers are making greater progress in expanding production. It is expected that lithium battery copper foil will usher in a wave of expansion from 2022 to 2023. In 2022, the domestic and global lithium battery copper foil production capacity will expand by 9.7 tons and 10.0 tons respectively; in 2023, the domestic and global lithium battery copper foil production capacity will expand by 7.0 tons and 8.4 tons respectively.
siege relies on expansion of production, and domestic mainstream manufacturers have plans to expand production. Leading companies such as Nord Co., Ltd., Jiayuan Technology, Longdian Huaxin, Jiujiang Defu, Tongguan Copper Foil, Zhongyi Technology, etc. all have large-scale expansion plans. Domestic manufacturers such as Garden Copper, Jiangxi Copper, and Deeproot Copper Foil have also planned to expand their production capacity.
We believe that the reason why enterprises are conducting such a large-scale expansion of production is the following two internal driving forces: First, demand driven by new energy vehicle power batteries; Second, meet the access conditions of leading battery factories: copper foil manufacturers with no advantage in production capacity scale may not be able to obtain a large number of orders from leading battery factories, and the market share will be concentrated in leading copper foil factories, and the leading battery factories will require suppliers to match their own battery planned production capacity to meet the stability of their material supply. However, although the expansion plan is large, the lithium battery copper foil production capacity (especially extremely thin copper foil production capacity) in the past two years has been quite limited. We believe that there are mainly four reasons: 1) cathode roller equipment; 2) barriers such as process, certification, and capital; 3) long capacity cycle; 4) decline in capacity utilization.
3.2 If you want to do a good job, you must first sharpen the device. Cathode roller equipment is the key to the limited production expansion
Cathode roller is the core equipment for electrolytic copper foil manufacturing, and its quality determines the grade and quality of copper foil. Copper ions electrolyte is deposited on the surface of the cathode roller and generates copper foil. At the same time, the roller is continuously rotated and circumferentially, so that the copper foil can be continuously generated and peeled off, and finally rolled the foil. During the entire foil-growing process, the cathode roller is the most important device.
grain size and uniformity are important factors affecting the quality of the cathode roller foil. The surface of the cathode roller is the basis for the deposit of copper foil into foil. The quality of the roller surface is directly related to the apparent quality of the smooth surface of the copper foil. The finer the grains on the surface of the titanium layer, the easier it is to form a small, ultra-thin and tougher glossy surface; the geometry and arrangement of the titanium layer will affect the internal qualities such as the density, uniformity and refinement of the internal particles of the copper foil, as well as the micromorphic shape of the rough surface. Therefore, the grains on the surface of the cathode roller are required to be fine, with consistent geometric shapes, small, uniform and consistent arrangement.
Japanese and Korean cathode roller manufacturers have advanced technology but limited production capacity. Domestic cathode roller manufacturers are subject to technical limitations: Japanese and Korean companies have significant technical and product advantages in the field of copper foil equipment production. More than 70% of the cathode rollers in the world come from Japanese companies such as Sanchuan and Nippon Steel. The cathode rollers produced by foreign manufacturers have good uniformity and consistency, with a grain size of more than 12 levels, which can better meet the production needs of extremely thin copper foils with thicknesses of 6μm or less.
However, the production cycle of cathode rollers is long. Japan Sanchuan's production capacity is only 6-8 units per year. The annual output of Japanese cathode rollers is about 230-280 units. Each cathode roller corresponds to a copper foil production capacity of 250-300 tons. It is roughly estimated that it can meet the new production capacity of 60,000 to 70,000 tons of copper foil, and cannot meet the annual production capacity of about 100,000 tons of copper foil. Moreover, Japanese companies have low willingness to expand production, and cathode roller manufacturers have already scheduled to deliver orders until 2024. The interval between orders placed by copper foil factory and delivery of cathode rollers is relatively long, which cannot meet the copper foil expansion needs of domestic manufacturers.
Currently, there are only a few companies in China that can produce cathode rollers. The main manufacturers are Hongtian Technology, Xi'an Taijin, and the Fourth Aerospace Institute 7414 Factory. Among them, Hongtian Technology's core technology comes from Japan's Aiji, which currently accounts for more than 50% of domestic cathode rollers. Xi'an Taijin and Fourth Aerospace Institute 7414 Factory is independently developed. Domestic cathode rollers have been introduced into mainstream copper foil manufacturers such as Nord and Jiayuan. Companies such as Hailiang and Jiangtong, which have newly entered the copper foil industry, also mainly use domestic cathode rollers. The domestic cathode rollers are lower than imported cathode rollers. The current price of cathode rollers produced in Japan is about 2.4-2.5 million yuan per unit, and the price of domestic cathode rollers is about 1.6-1.8 million yuan. However, domestic cathode roller technology is still relatively backward, the uniformity is relatively insufficient, and the grain size can only be reached at level 10, which cannot meet the production of extremely thin copper foil. In addition, the preparation of titanium rings requires grade 0 sponge titanium, and the titanium rings were previously mainly used in military products, and the strong demand for military products will also squeeze the production capacity of the cathode rollers.
Comprehensive analysis of the above, Japan's cathode rollers have insufficient production capacity and long production cycle. Although domestic cathode rollers can provide a certain increment, they can only play the role of "firefighter" at present, and are mainly used in products with thickness of 8μm or above in newly added production capacity. Under the trend of extremely thin copper foil, whether domestic cathode roller equipment can better serve the production of extremely thin copper foil remains to be verified, and the expansion of extremely thin copper foil is limited.
3.3 Process, certification, and funding barriers to build a moat
In the copper foil industry, production process knowledge-how requires long-term accumulation. Large downstream customers of lithium batteries have a preference for certification. Manufacturers with stable production capacity and a certain scale. The heavy asset model has also greatly raised the investment threshold for expansion. Leading manufacturers enjoy industry dividends by relying on their scale and first-mover advantages, while small and medium-sized manufacturers find it difficult to win in the competition.
During the foil growth process, there are obvious technical barriers such as grinding roller technology, additive selection, equipment debugging and parameter setting. 1) Grinding roller process: In order to reduce the surface roughness of the cathode roller to enough to make extremely thin copper foil, advanced grinding roller technology is required. The corresponding parameter debugging must meet various strict conditions to facilitate the peeling of the extremely thin copper foil from the surface of the cathode roller. 2) Additive selection: In order to ensure the high performance and stability of extremely thin copper foil, it is necessary to combine and debug the combination of multiple additives, and at the same time, control and debug the additive amount and drop frequency. 3) Equipment debugging and parameter settings: In order to prevent strip breakage and wrinkle, it is necessary to optimize the foil production equipment structure, and to calibrate and debug the equipment parameters such as production current and voltage output efficiency.
High barriers to customer certification and long cycle. The supply chain system of lithium battery manufacturers downstream of copper foil is huge and independent. In order to ensure the stability and continuity of production, the supply chain certification system of lithium battery manufacturers has high requirements for suppliers' technology, production scale, etc., and it is difficult for small and medium-sized manufacturers to enter their supply chain on a large scale. In order to ensure the stability of product quality, lithium battery manufacturers will not easily change suppliers and have high customer stickiness. Even if you can pass the certification, it still takes 6 months to supply the small batch of orders before you have the opportunity to undertake large batches. This has also caused many small and medium-sized manufacturers to have a large nominal production capacity in idle state. The funding threshold is relatively high under the heavy asset model of
.Among lithium battery materials such as positive electrode, negative electrode, electrolyte, and separator, fixed asset investment in copper foil is relatively high. To illustrate this point, we conduct quantitative analysis: 1) Calculate the fixed investment amount of copper foil in a single ton and single GWh: According to some expansion projects disclosed by mainstream companies such as Jiayuan Technology, Nord Co., Ltd., and Chaohua Technology, the single ton fixed asset investment of lithium battery copper foil is about 60,000-70,000 yuan, and the fixed asset investment of 1GWh is about 45 million to 55 million yuan.
2) Comparison of fixed investment amount of lithium battery materials: By counting the unit fixed investment amount (tons or tens of thousands of square meters) of lithium battery materials and estimating the unit consumption of various materials, we calculate the fixed investment scale of 1GWh of lithium battery materials. The calculation formula is: fixed asset investment per unit mass or area * unit consumption = unit GWh fixed asset investment. For 1GWh, the investment scale of copper foil (45-52.5 million yuan) is lower than the positive electrode (72-108 million yuan) and the diaphragm (66-110 million yuan) and higher than the negative electrode (17-22 million yuan) and electrolyte (91.2-2.4 million yuan), which belongs to the heavy asset model.
3.4 The expansion cycle is long and the capacity utilization rate needs to be improved, and the supply is further restricted
Although various copper foil manufacturers have proposed their own expansion plans, there are still many uncertainties in whether the expansion capacity will be quickly and effectively implemented.
lithium battery copper foil expansion cycle is long, and the speed is significantly slower than the downstream battery factory expansion plan. The new production capacity of lithium battery copper foil generally takes about 2 years, and it goes through project planning, infrastructure projects, decoration projects, equipment procurement and installation, personnel recruitment and training, trial operation and other processes. After the capacity is completed, it will take about 1 year of capacity climbing. The entire process lasts about 3 years, which is significantly slower than the expansion speed of downstream battery factories.
Take the capacity construction and production timetable of fundraising projects disclosed in Zhongyi Technology's prospectus as an example. The capacity construction time is as long as 21 months, and the capacity climbing gradually goes from 30% to 80% and 100%. It will take 15 months to finally achieve 100% production.
Domestic capacity utilization rate needs to be further improved. According to statistics from Gaogong Lithium Battery, the domestic capacity utilization rate in 2020 will be 42.1%. As new production capacity gradually reaches full production, the capacity utilization rate will gradually increase.
Capacity utilization rate is at a low level and is related to both subjective and objective factors:
Objectively:
1) Lithium-battery copper foil slitting leads to loss. The mainstream width of cathode roller equipment is 1380mm (the cathode rollers with a domestic lithium battery copper foil production capacity exceeding 95% are all widths). Due to the curling and other reasons, the width of the mother roll can be about 1300mm. However, downstream lithium battery manufacturers have not formed a unified standard. The width of the copper foil used is different. The overall width is generally in the range of 700-800mm, which causes the utilization efficiency of the mother roll to be greatly reduced, so there is a certain gap between output and capacity.
2) From the perspective of product structure, the high requirements of ultra-thin copper foil for production processes reduce production efficiency, and the trend of extreme thinning further amplifies this capacity loss.
① Low load rate. Ultra-thin copper foil has high requirements for process stability control, equipment accuracy requirements, and automatic control accuracy control. It is necessary to moderately reduce the production of the foil current load to achieve defect-free continuous and long-term production. The output of copper foil is positively correlated with the load, and the reduction in load leads to a reduction in production efficiency.
② low yield rate. The tensile strength per unit width and the compressive deformation ability of the foil surface are both low, resulting in some hidden mass defects forming dominant mass defects (qualitative change caused by quantitative change), and the yield rate will naturally decrease, which will lead to further decline in production capacity.
③The operating rate is low. Ultra-thin copper foil has high requirements for equipment accuracy and control accuracy, and the frequency of equipment planned and unplanned maintenance is increased, reducing the effective start time of the equipment, which in turn leads to further decline in production capacity.
Subjectively:
3) Small and medium-sized manufacturers expand production in large quantities, and small and medium-sized manufacturers are prone to encounter barriers such as being unable to pass customer certification, so a considerable part of the production capacity cannot be put into production.
4) Mainstream manufacturers have built new and expanded production capacity, and the production capacity of lithium battery copper foil has been completely released, which requires a certain period of climbing, which is also an important reason for the current reduction in capacity utilization.
3.5 Summary
This chapter mainly sorts out the production and expansion plans of lithium battery copper foil manufacturers, and thoroughly analyzes the main bottlenecks that limit the rapid expansion of production capacity. In terms of output, the global lithium battery copper foil production in 2020 was 183,000 tons, a gap of 29,100 tons compared with the demand of 212,000 tons, and according to our calculations, the supply and demand gap will widen year by year. In terms of production capacity, according to our estimates, the global effective production capacity of lithium battery copper foil in 2020 will be 257,000 tons, and the domestic effective production capacity will be 195,000 tons. There are plans to expand production at home and abroad, and domestic manufacturers are making greater progress in expanding production. It is expected that lithium battery copper foil will usher in a wave of expansion from 2022 to 2023. The expansion of copper foil manufacturers has the following two internal driving forces: First, the demand represented by the power batteries of new energy vehicles is driven by; second, it meets the access conditions for leading battery factories.
3) The bottlenecks that limit capacity expansion are mainly as follows:
① Cathode roller equipment is the key to the limitation of production expansion. Japanese and Korean cathode roller manufacturers have advanced technology but limited production capacity. Domestic cathode roller manufacturers are subject to technical limitations;
② High process, certification, and funding barriers: In the process of foil production, there are technical barriers such as grinding roller technology, additive selection, equipment debugging and parameter setting; high customer certification barriers and long cycles; high funding thresholds under heavy asset mode;
③ Lithium battery copper foil expansion cycle is long, and the speed is significantly slower than the downstream battery factory expansion plan;
④ Domestic capacity utilization needs to be further improved: objectively speaking, the slitting of lithium battery copper foil leads to losses, and the high requirements of ultra-thin copper foil for production processes reduce production efficiency, and the trend of extremely thinning makes this capacity loss further amplify; Subjectively speaking, small and medium-sized manufacturers have expanded production in large quantities, and mainstream manufacturers have built new, renovated and expanded production capacity. The increase in standard foil demand and higher yields have increased profits, which also restricts the increase in lithium battery copper foil production capacity. (Report source: Future Think Tank)
, lithium battery copper foil investment panorama There are mainly two listed companies in the field of lithium battery copper foil, namely Nord Co., Ltd. and Jiayuan Technology; Copper Crown Copper Foil and Zhongyi Technology, which are currently in the IPO stage, have successfully passed the review; in addition, leading companies in the copper industry chain such as Hailiang Co., Ltd. and Jiangxi Copper Industry also have new production capacity plans.
First, give a brief introduction to mainstream manufacturers:
The first-tier Nord and Jiayuan listed companies both have considerable output, and are important suppliers to major customers such as CATL. They are also more technically leading than other companies. The 6μm and 4.5μm products have both been mass-produced and received customer orders.
1) Nord Co., Ltd.: The accelerated release of production capacity and strong demand from large customers, the rise in volume and price has led to a bottoming out rebound in performance. The company currently has a total annual production capacity of 43,000 tons in two production bases in Qinghai and Huizhou. Its current monthly shipments exceed 3,000 tons, and its order demand is strong. The company raised 1.42 billion yuan in December 2020 to invest in the second phase of Qinghai 15,000 tons, and 2.288 billion yuan in June 2021 to invest in the third phase of Qinghai 15,000 tons and the third phase of Huizhou 12,000 tons. After all, Nord will form an annual production capacity of 85,000 tons. Nord achieved revenue of 3.24 billion yuan in 21Q1-Q3, an increase of 137% year-on-year; net profit attributable to shareholders was 320 million yuan, an increase of 2070% year-on-year. Among them, the net profit attributable to shareholders in Q3 reached 120 million yuan, an increase of 8663% year-on-year. This year's strong downstream demand has brought about both volume and price increase, driving performance growth.
2) Jiayuan Technology: High yield rate and excellent cost control bring leading single-ton profitability, and the expansion plan will flourish in multiple points. The company's yield rate is above 80%, while the yield rate of lithium battery copper foil of Tongguan and Zhongyi is about 65-75%; excellent cost control has enabled Jiayuan's single ton profitability to always remain above 10,000 yuan, and the net profit per ton in 21Q3 reached 21,000 yuan, higher than Nord, Tongguan and Zhongyi. Coupled with the production and sales advantages of leading manufacturers, Jiayuan achieved revenue of 1.987 billion yuan in 21Q1-Q3, an increase of 151.91% year-on-year; net profit attributable to shareholders was 394 million yuan, an increase of 238.21% year-on-year. Among them, the company achieved revenue of 782 million yuan in 21Q3, up 103.90% year-on-year and 15.85% month-on-month; net profit attributable to shareholders was 150 million yuan, up 154.65% year-on-year and 11.94% month-on-month.In terms of expansion planning, in addition to the current 21,000 tons of Meixian production capacity, the 15,000 tons project in Baidu Town began to be put into production at the end of November 2019. In addition, the 15,000 tons of Ningde (H2 was put into production in 2019) announced in November 2019 and the 20,000 tons of standard foil in Longnan, the 16,000 tons of Baidu Town announced in March 2019, and the 20,000 tons of Shandong Xinliyuan acquisition, Jiayuan's production capacity will reach 100,000 tons in 23 years.
In the second echelon of the industry, Copper Crown Copper Foil and Zhongyi Technology have both passed the IPO successfully. Under the heavy asset model of lithium battery copper foil, listing financing and expansion has become an inevitable choice.
3) Copper crown copper foil: a copper foil manufacturer under Tongling Nonferrous metals, taking into account both standard foil and lithium battery copper foil. Tongguan Copper Foil is a subsidiary of Tongling Nonferrous Metals, a copper giant. Its current annual production capacity of 45,000 tons, the standard foil production capacity is 25,000 tons, and the lithium battery copper foil production capacity is 20,000 tons. The IPO fundraising investment is the standard foil project, but the company is also actively paying attention to the lithium battery copper foil project. As the market demand for standard foils is also fully improved, coupled with the high yield rate of standard foils, the profitability of standard foil business is also strong. At the same time, the company also has the ability to convert standard foil lithium battery foils. In 2020, the company's revenue share of standard foil and lithium battery copper foil was 64% and 24% respectively.
4) Zhongyi Technology: Lithium-battery copper foil production capacity is aimed at extremely thin copper foils of 6μm or below. After the actual controller changes, the restart progress is smooth. In terms of the company's current business structure, lithium battery copper foil revenue accounts for 55%, of which 6μm revenue accounts for 96% of lithium battery copper foil revenue (all 21H1 data). The company's largest customer is CATL. Due to the suspension of production and transformation of Ningde supplier Qinghai Electronics (a subsidiary of Nord Co., Ltd.), the company seized the opportunity to become a supplier of Ningde. Through the strategy of concentrating on developing extremely thin copper foils, 2021H1 achieved revenue of 960 million yuan, an increase of 113% year-on-year; and achieved net profit attributable to shareholders of 190 million yuan, an increase of 470% year-on-year. During the IPO process of Zhongyi Technology, the actual controller passed away. The son of the original actual controller inherited the equity and became the actual controller. The IPO restarted and passed the meeting smoothly. Among the listed companies in the second echelon of
, Chaohua Technology is also a relatively pure copper foil target, but the current production capacity is all standard foil. In the future, after the lithium battery copper foil capacity is put into production, it will also enter the lithium battery industry chain; Far East Co., Ltd. is bound to CATL, and the copper foil business has also achieved good growth. In addition, lithium battery copper foil has attracted the attention of many leading companies in the copper industry chain, including Hailiang Co., Ltd. and Jiangxi Copper Industry, all have large production capacity plans. Hailiang Co., Ltd., the leading copper pipe manufacturer, announced in November 2011 that it plans to invest 8.9 billion yuan to build a copper foil project with an annual output of 150,000 tons (120,000 tons of lithium battery copper foil + 30,000 tons of standard foil). The project is divided into three phases (50,000 tons per phase). The first phase will start at the end of 21 (25,000 tons will be put into production in Q4 in 2012, and 25,000 tons will be put into production in Q2 in 2012). Jiangxi Copper has an existing subsidiary Jiangxi Copper Company, with a capacity of 15,000 tons of lithium battery copper foil. Jiangxi Copper announced an annual output of 100,000 tons in July 2012, and 50,000 tons of the first phase will be put into production by the end of 23.
Secondly, we sorted out the production expansion progress of mainstream manufacturers: We sorted out the production expansion plans of Nord Co., Ltd., Jiayuan Technology, Copper Crown Copper Foil, and Zhongyi Technology, but the nominal capacity may be somewhat different from the actual capacity, and the actual capacity of leading manufacturers such as Jiayuan may be higher than the nominal capacity. In terms of gross profit margin of
product, Jiayuan Technology's lithium battery copper foil product has the highest gross profit margin. Jiayuan Technology's extremely thin copper foil product share has increased rapidly, and we calculate the gross profit margin of copper foil products in Chapter 3. Extremely thin copper foil has a higher gross profit margin; Jiayuan Technology's output is in the first echelon, and its scale advantage reduces costs, and its products enter large customers more, which also makes standardization more convenient. Small orders will cause certain product losses and efficiency losses due to different product specifications required by different products. The reason why Nord, which is also the leader, has a lower gross profit margin than Jiayuan is related to the fact that its production capacity in Qinghai cannot be fully utilized due to technical transformation in the past two years. In the calculation of gross profit margin, the gross profit margin of the other three manufacturers is only aimed at lithium battery copper foil products, while Nord's gross profit margin is aimed at lithium battery copper foil and standard foil. Although the proportion is not high, it also relatively lowers the gross profit margin.
(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
