Significant increase in domesticproduction, carbon fiber leader to accelerate the layout

In recent years, China's carbon fiberproduction capacity has expanded significantly, the capacity utilization ratehas increased rapidly, and the domestic substitution has accelerated.

A number of research institutions recentlypointed out that China's carbon fiber production capacity has expandedsignificantly in recent years, with capacity utilization rate rising rapidlyand domestic substitution accelerating. As the inner liner of hydrogen storagebottle, carbon fiber wound composite material is an essential key component inthe field of hydrogen storage and transportation. Currently, hydrogen fuel cellvehicles are being laid out all over the country, and the demand for on-boardhydrogen storage bottles is getting hotter and hotter. The acceleratedlocalization of carbon fiber and technology improvement will further reduce thecost of hydrogen storage bottles, which will benefit the sustainabledevelopment of China's hydrogen energy industry.

Accelerated layout of leading enterprises

Previously, the price of imported carbonfiber for pressure vessels rose due to the rise of global commodity prices,which led to the increase of production cost of domestic hydrogen storagebottles. For many years, carbon fiber technology for pressure vessels has beenmonopolized by Japan, the United States, South Korea and other countries, butin recent years, with China's leading enterprises to accelerate the projectlayout and technology upgrading, this monopoly situation is being graduallybroken.

In August, Jilin Chemical Fiber Group'shigh-capacity, high-performance 50K large filament carbonization line was putinto operation, and the company's total carbon fiber production capacity wasincreased to 35,000 tons. in October, China's first 10,000 tons of 48K largefilament carbon fiber project, the first set of domestic lines in the ShanghaiPetrochemical carbon fiber industrial base was put into operation and producedqualified products.

With the encouragement and support of thepolicy mechanism, many places in China started to lay out the upstream anddownstream industrial chain of carbon fiber. 19 September, Erdos held thesigning ceremony of the strategic cooperation of the carbon fiber wholeindustry chain production base project to promote the landing of 10,000tons/year high performance carbon fiber project by uniting the upstream anddownstream partners, and the downstream layout of carbon fiber industry willinclude the production base of 100,000 hydrogen storage bottles per year, theproduction base of 30,000 hydrogen fuel heavy trucks per year, and theproduction base of hydrogen storage bottles per year. The downstream layout ofcarbon fiber industry will include the production base of 100,000 hydrogenstorage bottles per year, 30,000 hydrogen fuel heavy truck production andmanufacturing base, etc. The annual output value will exceed 10 billion yuan.

As China's carbon fiber projects continueto increase, the capacity utilization rate is rising. China MerchantsSecurities pointed out that in recent years, driven by downstream demand,China's carbon fiber production capacity is expanding rapidly, and in 2021,China's carbon fiber production capacity will be 63,500 tons, up 75.41%year-on-year, accounting for 30.5% of the global carbon fiber productioncapacity, ranking first in the world in terms of production capacity.