With prismatic batteries dominating the market, cylindrical batteries have gained a certain cost advantage due to their higher level of automation and intelligent production. At the same time, their relatively mature technology and good battery consistency have also helped them to gain a foothold in the microcar and logistics vehicle market.
For example, in the passenger car market, BAK Battery announced that it will provide supporting products for the E20X, the first A0-class SUV model of JAC Volkswagen SOL (Sihao) brand, using 3.0Ah 18650 ternary lithium battery cells, which is expected to be officially launched in September; Penghui Energy also stated that it will provide cylindrical battery solutions for SAIC-GM-Wuling, and mass production and supply are expected to begin at the end of September.
In the logistics vehicle market, Zhihang New Energy's main product is the 18650-2600mAh ternary lithium battery, and its main customers include OEMs such as Yantai Shuchi, Chenggong Automobile, Zhongzhi Yike, and Dongfeng Motor.
However, under the guidance of national subsidies, higher requirements are being placed on the performance of power batteries in terms of energy density, lightweighting, and other aspects. As a result, the market share of square and pouch batteries continues to rise, while the market space for cylindrical batteries is being squeezed.
According to GGII statistics, in August 2018, the total installed capacity of power batteries in my country was approximately 4.17 GWh, a year-on-year increase of 44%. Among them, the total installed capacity of prismatic batteries was approximately 3.05 GWh, accounting for 73.06%; the total installed capacity of cylindrical batteries was approximately 0.6 GWh, accounting for 14.3%; and the total installed capacity of pouch power batteries was approximately 0.53 GWh, accounting for 12.63%.
Meanwhile, the application of pouch batteries in new energy passenger vehicles is becoming increasingly prominent. This will further squeeze the market space for cylindrical batteries.
Nevertheless, despite the squeezed market space, cylindrical battery manufacturers did not passively respond but began to plan their countermeasures.
On the one hand, cylindrical battery manufacturers have begun to upgrade their products in response to the problems that have emerged from the cylindrical battery technology itself.
According to GGII (Gaogong Lithium Battery Research Institute), the cylindrical battery market is currently dominated by 18650 cells. There are more than 20 companies in China that have the capability to mass-produce 18650 power cells, with most of their products having a capacity of 2.4-2.6Ah.
With the improvement of automation and intelligent production levels of 18650 power cells and the demand of downstream automakers for high-energy-density batteries, high capacity is an inevitable trend for future development. 18650 battery companies have begun to focus on high-capacity cell products with capacities of 3.0AH and above.
In terms of models, driven by Tesla's Model 3 adopting 21700 batteries, domestic cylindrical battery companies including BAK Battery, Far East Foster, EVE Energy, Lishen Battery, Penghui Energy, Tianpeng Power, and Mengshi New Energy have announced that they have deployed 21700 batteries and plan to achieve mass production within the year. Lishen Battery has taken the lead in achieving mass supply of 21700 batteries, providing OEMs with a new option.
With its advantages in energy density and lightweight design, the 21700 battery may gain favor with a number of passenger car and special vehicle manufacturers, gradually replacing the 18650 battery in their electric vehicle models.
Meanwhile, cylindrical batteries have also made breakthroughs in the application of high-nickel materials. Battery companies such as BAK and Tianpeng have already mass-produced and supplied high-nickel 811 and NCA18650 batteries, and it is expected that the specific energy of batteries will be further improved in the future.
Far East Foster General Manager Cai Dong said, "Because cylindrical products have fast delivery times, high cost-effectiveness, and can be easily replaced after delivery, we are very confident about the future use of cylindrical products in passenger cars and logistics vehicles."
On the other hand, cylindrical battery manufacturers began to adjust their market strategies for 2018.
During the "2018 National Roadshow" of GGII Lithium Battery, it was learned that Chuangming New Energy will focus on capturing the high-end digital battery market of 18650-3350mAh this year, while adhering to a steady customer promotion strategy in the power battery field; Zhenhua New Energy, with its "special" genes, will focus on "expansion" in the special energy storage business this year, while maintaining a "stability" strategy in the power battery field; Zhuoneng New Energy also stated that it will focus on targeting the lithium battery new energy market that is unrelated to subsidies or less affected by subsidies this year.
