China Business Intelligence Network: In recent years, power batteries have attracted much attention with the rise of new energy vehicles. As an important power lithium battery, ternary batteries occupy most of the domestic market share with their advantages such as higher energy density, higher charging efficiency and better low temperature adaptability.
1. Ternary battery definition
ternary battery is called ternary polymer lithium ion battery, which refers to a lithium ion battery in which the positive electrode material uses nickel-cobalt-manganese lithium manganese oxide ternary positive electrode material or nickel-cobalt lithium aluminate ternary positive electrode material. Therefore, this battery is also referred to as NCM battery (nickel-cobalt-manganese lithium ion battery) or NCA battery (nickel-cobalt-lithium aluminate lithium ion battery), and its ternary refers to nickel, cobalt, manganese or aluminum in the positive electrode.
Compared with traditional iron lithium-ion batteries, the ternary battery has a higher energy density and a higher voltage, and the battery performance can be adjusted by adjusting the NCM ratio of the positive electrode material.
2. Industry favorable policies
As a type of power battery, the ternary power battery has received strong support from national policies. In recent years, the country has issued a series of policies to encourage and support power batteries, such as the "Action Plan for Carbon Peak Before 2030" and the "Management Specifications for New Energy Storage Projects (Interim)". The specific policies of the power battery industry are as follows:
Source: compiled by China Business Industry Research Institute
3. Analysis of the current status of the ternary power battery industry
1. Yield analysis
1. Production analysis
From the perspective of output, data shows that the production of ternary batteries in 2021 has a significant growth, with a growth rate of 93.61%. From January to June 2022, the cumulative production of ternary batteries was 82.9Gwh, accounting for 40.2% of the total production, a cumulative year-on-year increase of 125.0%. Among them, in June 2022, my country's power battery production totaled 41.3Gwh, a year-on-year increase of 171.7%, a month-on-month increase of 16.1%, and a ternary battery production of 18.3Gwh, accounting for 44.3% of the total output, a year-on-year increase of 148.9%, and a month-on-month increase of 12.5%.
Data source: compiled by China Business Industry Research Institute
2. Sales volume analysis
From the perspective of sales, the data shows that in 2021, the ternary battery achieved sales of 79.6Gwh, sales volume growth was significant, with a growth rate of 128.74%. From January to June 2022, my country's cumulative sales of power batteries reached 205.4Gwh, a cumulative year-on-year increase of 253.2%, and the cumulative sales of ternary batteries reached 83.8Gwh, accounting for 40.8% of the total sales, a cumulative year-on-year increase of 208.1%. Among them, in June 2022, my country's power battery sales totaled 47.5Gwh, a year-on-year increase of 297.0%, and the ternary battery sales were 22.1Gwh, accounting for 46.5% of the total sales, a year-on-year increase of 328.3%.
Data source: compiled by China Business Industry Research Institute
3. Vehicle loading volume analysis
(1) Vehicle loading volume has increased significantly
Data shows that in 2021, the vehicle loading volume reached the highest in recent years, reaching 74.3Gwh, with a growth rate of 91%. From January to June 2022, my country's cumulative installed capacity of power batteries was 110.1Gwh, a cumulative year-on-year increase of 109.8%, and the cumulative installed capacity of ternary batteries was 45.6Gwh, accounting for 41.4% of the total installed capacity, a cumulative year-on-year increase of 51.2%. Among them, in June 2022, the installed volume of ternary batteries was 11.6Gwh, accounting for 42.9% of the total installed volume, an increase of 94.9% year-on-year and a increase of 39.4% month-on-month.
Data source: compiled by China Business Industry Research Institute
(2) Analysis of enterprise loading volume
From the perspective of ternary battery companies' loading volume, in June 2022, CATL had the highest loading volume, reaching 5.65Gwh; followed by LG New Energy, reaching 1.67Gwh; ranked third was China Innovation Airlines, with loading volume of 1.33Gwh. In addition, the total installed capacity of Xinwangda, Funeng Technology, Honeycomb Energy, Taffir, Guoxuan Hi-Tech, Yiwei Lithium Energy, and Dofluoroduo is 2.26Gwh.
Data source: compiled by China Business Industry Research Institute
4. Market share analysis
From the perspective of market share, China's ternary battery industry is showing a relatively concentrated development trend.Due to the continuous improvement of terminal users' requirements for the power performance and endurance of new energy vehicles and the gradual maturity of technologies related to improving the safety of ternary power batteries, ternary power batteries are expected to remain one of the important technical routes for power batteries in the future. The top companies in power batteries will show stronger vitality in future market competition. Data shows that CATL ranked first in market share, accounting for 48.8%, second is LG New Energy, accounting for 14.4%, and third is China Innovation Airlines, accounting for 11.5%.
Data source: China Business Industry Research Institute Database
IV. Analysis of key enterprises
1. CATL
1. CATL
CATL is mainly engaged in the research, development, production and sales of power batteries, energy storage batteries and battery recycling products, and is a world-leading power battery and energy storage battery company. According to SNEResearch statistics, CATL ranked first in the world for five consecutive years from 2017 to 2021. In 2021, CATL's operating income reached 130.356 billion yuan, and achieved net profit attributable to shareholders of 15.931 billion yuan, a year-on-year increase of 185.34%. In the first quarter of 2022, the company achieved operating income of 48.678 billion yuan and net profit of 1.493 billion yuan.
Data source: compiled by China Business Industry Research Institute
From the perspective of products, the operating income of CATL's power battery system, lithium battery materials, energy storage systems and other businesses in 2021 was 91.491 billion yuan, 15.457 billion yuan, 13.624 billion yuan and 9.785 billion yuan, respectively, an increase of 132.06%, 350.74%, 601.01%, and 77.22% year-on-year respectively.
Data source: compiled by China Business Industry Research Institute
2. Xinwangda
Xinwangda is mainly engaged in the research and development and manufacturing business of lithium-ion battery modules. It has now become one of the lithium-ion battery module manufacturers with the strongest design and R&D capabilities, the most complete supporting capabilities and the most product series in the lithium energy field in China. It has successfully entered the supply chain of many well-known domestic and foreign manufacturers. In 2021, Xinwangda's operating income reached 37.359 billion yuan and its net profit reached 916 million yuan, an increase of 14.18% year-on-year. In the first quarter of 2022, Xinwangda achieved operating income of 10.621 billion yuan and net profit of 95 million yuan.
Data source: compiled by China Business Industry Research Institute
From the perspective of products, in 2021, Xinwangda mobile phone digital, laptop, smart hardware, electric vehicle battery, and precision structural parts operating income was 20.795 billion yuan, 5.419 billion yuan, 5.007 billion yuan, 2.933 billion yuan and 2.18 billion yuan respectively, accounting for 55.66%, 14.51%, 13.40%, 7.85% and 5.84% of the operating income respectively.
Data source: compiled by China Business Industry Research Institute
3. Guoxuan Hi-Tech
Guoxuan Hi-Tech is mainly engaged in the research, development, production and sales of power lithium batteries and power transmission and distribution equipment. After years of exploration and efforts, it has gradually developed into a global leading power lithium battery enterprise. Guoxuan Hi-Tech is one of the earliest companies in China to engage in the independent research, development, production and sales of new energy vehicle powered lithium-ion batteries, and has core technical intellectual property rights. In 2021, Guoxuan Hi-Tech achieved operating income of 10.356 billion yuan and net profit of 101 million yuan, a year-on-year decrease of 31.92%. In the first quarter of 2022, it achieved operating income of 3.916 billion yuan and net profit of 32 million yuan.
Data source: compiled by China Business Industry Research Institute
From the perspective of products, the operating income of Guoxuan High-tech power lithium battery products, power transmission and distribution products, and other businesses in 2021 was 9.765 billion yuan, 458 million yuan and 133 million yuan, respectively, an increase of 55.57%, 33.42%, and 28.06% year-on-year respectively.
Data source: compiled by China Business Industry Research Institute
4. Dofluoro
Dofluoro is one of the earliest enterprises to engage in the independent research, development, production and sales of new energy vehicle power lithium batteries with its technical accumulation in the field of fine fluorine chemicals. It has established long-term strategic partnerships with many major domestic new energy vehicle companies and well-known electric two-wheeled vehicle companies. Its products are widely used in new energy vehicles, electric bicycles, energy storage systems, power tools and other fields. Dofluoro achieved operating income of 7.799 billion yuan and net profit of 1.26 billion yuan in 2021, a year-on-year increase of 2490.8%.In the first quarter of 2022, it achieved operating income of 2.654 billion yuan and net profit of 732 million yuan.
Data source: compiled by China Business Industry Research Institute
points of products, in 2021, DoFluoro's main business is new materials, aluminum fluoride salts, and lithium batteries, and its operating income accounts for 52.18%, 17.07%, and 12.65% of the main business income respectively.
Data source: compiled by China Business Industry Research Institute
5.Fineng Technology
Fineng Technology is mainly engaged in the research, development, production and sales of lithium-ion power batteries for new energy vehicles and vehicle battery systems and energy storage systems. It focuses on the battery cells, modules and battery packs of ternary high-nickel power batteries. It has now become one of the leading companies in the world's ternary soft-pack power batteries. In 2021, Funeng Technology achieved operating income of 3.5 billion yuan and net profit loss of 953 million yuan. In the first quarter of 2022, it achieved operating income of 1.53 billion yuan and net profit loss of 244 million yuan.
Data source: compiled by China Business Industry Research Institute
From the perspective of products, the operating income of Funeng Technology modules, battery packs, battery cells, and energy storage battery systems in 2021 were 1.069 billion yuan, 1.01 billion yuan, 274 million yuan, and 104 million yuan, respectively, an increase of 95.38%, 249.35%, 264.79%, and 100% year-on-year respectively.
Data source: China Business Industry Research Institute compiled
5. Development prospects of the three-way power battery industry
1. National policies support industry development
my country has introduced a number of new energy vehicle incentive policies, clearly supporting the development of new energy vehicles, and elevating the new energy vehicle industry to the focus of government industry support development in the "14th Five-Year Plan", carrying the important mission of my country's automobile industry to achieve "overtaking on the curve". At present, my country has established a relatively complete policy support system for the new energy vehicle industry from R&D, production, purchase, use to infrastructure, etc., which has brought huge growth space to the new energy vehicle market. The potential for explosive growth in the new energy vehicle market will continue to drive the growth of demand for ternary power batteries.
2. "Replace oil with electricity" promotes the market demand of the ternary power battery industry
my country's natural resources endowment is more coal, poor oil, and less gas, and crude oil has a high dependence on foreign countries. Reducing motor vehicle fuel consumption and maintaining national energy security are hard constraints for the development of the automobile industry. In addition, my country's power industry is developed, "using electricity instead of oil" is a long-term trend in the development of the automobile industry. In the context of domestic implementation of double points policy and traffic restrictions in major cities, new energy vehicles have become the main trend in the future development of the global automobile market. As the core component of new energy vehicles, market demand will inevitably grow rapidly.
3. Cost reduction will expand the scale of the power battery industry
Power battery costs account for 20% to 40% of the total cost of the car. Due to the advancement of battery technology and the expansion of production scale, the average cost of power batteries has dropped significantly in 2021. It is expected that the cost of power batteries will still have room for decline. The decline in battery costs will drive the decline in the price of new energy vehicles, which will help the new energy vehicle sales market, and thus promote the development of the ternary power battery market.
For more information, please refer to the "Research Report on Market Prospects and Investment Opportunities of China's Sanyuan Power Battery Industry" released by China Business Industry Research Institute. At the same time, China Business Industry Research Institute also provides industrial big data, industrial intelligence, industrial research reports, industrial planning, park planning, 14th Five-Year Plan, industrial investment promotion and other services.
