What Uses of Lithium Batteries And Why It May Become The New Global Chinese Power

How could a 30+ billion yuan super project be finalized in such a short period of time? What uses lithium batteries? Consensus on the industry's prospects is the key.

"The certainty opportunity of the new energy industry has arrived." December 21, 2021, Ningde Times Chairman Zeng Yuqun said when attending the annual meeting of Gao Gong lithium. Zeng Yuqun said that in the past 10 years, people entered the lithium battery industry with good expectations, that is, they believe that energy saving and environmental protection, green development is the future direction, power batteries, energy storage batteries have a future use. Today, this beautiful vision has become a realistic expectation of the opportunity to become certainty.

Economists' interpretations then provide the basis for government decision-making. "New energy is becoming the new engine of China's economy." A few days ago, while attending the 2021 China Entrepreneurs Boao Forum - China Fortune Summit, Ren Zeping, the invited chief economist of Dongwu Securities, proposed that the third energy revolution is the large-scale use of renewable energy brought about by power batteries, and what and how to use lithium batteries in this process? China is highly likely to achieve a bend in the road to overtake.

According to Shanghai Securities News information statistics, as of now, the A-share market has 11 lithium battery-related companies have exceeded 100 billion yuan in market value. Some of the lithium companies that have not yet been listed have also received funding. at the end of July,Honeycomb Energy has made the very best version of what uses of lithium batteries,and announced the completion of a B-round financing of 10.28 billion yuan, with news that the company plans to go public in 2022. in September, AVIC Lithium also completed a new round of 12 billion yuan in equity financing, and in November, the company's lithium-based civil goods segment became independent and renamed AVIC. Although the financing amount has exceeded 10 billion yuan, there is still news that "many institutions did not share the desired amount".

Lithium battery industry chain investment of more than a trillion

Secondary market pursuit, to help companies get a huge amount of financing, but also to promote the expansion of production.

According to lithium big data statistics, this year, including Ningde Time, BYD, China Innovation Aviation, Guoxuan High-tech, honeycomb energy, Yiwei lithium, Vision Power, Fu Energy Technology, Xin Wanda and other 25 battery companies combined new planning capacity of 1894GWh (GWh). If we estimate that each GWh corresponds to 400 million yuan of investment, the planned investment in the battery segment alone has exceeded 750 billion yuan. What uses lithium batteries in other areas?

A number of power battery companies have announced huge expansion plans. For example, China Innovation Aviation announced: 500GWh of planned production capacity in 2025 and 1TWh (terawatt-hour) in 2030. Then there is Hive Energy, from 200GWh in the first half of this year, to 320GWh in early September, to 600GWh in early December, the company's capacity planning has tripled in one year. There is also Guoxuan High-tech, the company recently disclosed that the production capacity will reach 50GWh by the end of this year, and will break through 100GWh by the end of 2022 and 300GWh by 2025.

The large investment in battery factories has directly driven the investment of upstream industry chain suppliers, and each link has been put into large-scale production. "The massive demand calls for a big chemical supply chain, which requires chemical giants to enter the industry to provide huge and stable supply and drive the upgrading of the whole industry through the supply side." Zeng Yuqun said he was pleased to see chemical giants such as BASF, Dow Chemical, Hubei Yihua and Guizhou Phosphoric entering the battery industry chain.

Despite encountering problems such as significant price increases of raw materials and tight supply chains, but put on the global market, Chinese companies are still the most active group of subjects, with the advantages accumulated in the Chinese market, to accelerate the expansion in the global market.

"China is entering the global market, including Europe and North America, in the form of industrial chain, and for the first time in history, the integration of technology, products, supply chain, capital, etc. to go to sea, which is an opportunity for Chinese enterprises. At the same time, the world also needs the contribution of Chinese enterprises." Liu Jincheng said recently.

Also according to GaoGong, China has the leading position in the world in the core materials manufacturing of power batteries, including 42% of cathode materials manufacturing globally, 65% of anode materials, 65% of electrolyte and 43% of diaphragm. Zhang Xiaofei, chairman of GaoGong Lithium, predicts that the compound annual growth rate of China's power battery shipments from 2022 to 2025 will exceed 50%, and China's four main materials will occupy 70% of the global share, and the competitiveness of China's lithium industry chain in the world will be further highlighted.