With global diversification, our lives are constantly changing, including the various electronic products we encounter. You might not know some of the components of these products, such as lithium battery materials. In recent years, China's lithium battery materials and equipment industry has experienced rapid growth. As the market expands, the lithium battery automated production equipment industry has shifted its focus from the original function of lithium battery production to high precision, safety, and standardization.
Factors driving the development of lithium battery materials
(1) Strong support from national industrial policies
The lithium-ion battery key materials and equipment industry belongs to both the energy conservation and environmental protection industry and the new energy vehicle industry, both of which are key development directions of national industrial policies. In recent years, government departments have intensively introduced a number of industry support policies to promote the development of the new energy industry, from which the lithium-ion battery industry has also benefited.
(2) It has a wide range of applications and huge market growth potential.
Since its large-scale commercial application, lithium-ion batteries have experienced rapid growth driven by strong demand across various market segments. Applications in traditional consumer electronics such as mobile phones, laptops, and digital cameras brought the first wave of market growth. In recent years, with the upgrading of consumer electronics products, smartphones, tablets, and power banks have become the driving force for market growth. In the next 3-5 years, lithium-ion power batteries, represented by those used in new energy vehicles, will propel the industry into a market worth hundreds of billions of yuan.
Lithium-ion battery materials face high patent barriers. The development of my country's lithium-ion battery industry still requires technological research and development, experience accumulation, and improvements to achieve product maturity and stability. Only then will the lithium-ion battery industry usher in a period of rapid growth.
The main reasons for the growth in demand for lithium battery production equipment in China
1. Japanese and South Korean companies are accelerating their global expansion, while major domestic power lithium battery companies are speeding up production capacity expansion, jointly driving the growth of production equipment.
1) Japanese and South Korean battery companies accelerate global expansion: In June 2019, the Ministry of Industry and Information Technology abolished the "Standard Conditions" and the list of supporting enterprises. This created opportunities for foreign companies. Battery companies, represented by Panasonic and LG, accelerated their global expansion, driving demand for lithium battery equipment. Domestic lithium battery equipment companies such as Lead Intelligent Equipment, Yinghe Technology, and Hangke Technology have successfully entered the supply chain, and their market share continues to rise rapidly.
2) Domestic companies are accelerating their expansion: Driven by the accelerated global expansion of Japanese and Korean battery companies and the increased demand in end markets such as low-power batteries and power tools, domestic power lithium battery companies and battery companies in sub-sectors are accelerating the deployment of new production capacity and a new round of capacity expansion, which is driving the growth in demand for upstream lithium battery equipment.
2. Driven by tightening carbon emission policies and increased subsidies in major countries, Europe has accelerated its vehicle electrification process, leading to a surge in European power battery production capacity. Some domestic equipment manufacturers entering overseas markets have benefited: the shift from voluntary to mandatory carbon emission policies in Europe has led to OEMs such as Volkswagen, Daimler, and BMW accelerating their electrification plans, and major European countries increasing subsidies for new energy vehicles.
3. 5G construction drives a replacement cycle, boosting orders for digital lithium battery companies: In June 2019, the Ministry of Industry and Information Technology issued 5G commercial licenses. Domestic 5G mobile phone shipments reached 13.769 million units in 2019. The increased charging speed of 5G phones impacts battery demand. Simultaneously, increased orders from Huawei, Xiaomi, and other companies have spurred the expansion of digital lithium battery companies such as Zhuhai Guanyu and Huizhou Liwei, directly driving up demand for lithium battery equipment.
4. Accelerated Localization and Upgrading of Equipment: The capacity expansion of lithium battery companies brings opportunities to domestically produced lithium battery equipment. Currently, most technical indicators of domestically produced equipment have reached international advanced levels, and they outperform foreign equipment companies in customer service. Driven by both product technology improvements and rapid service response, the localization of lithium battery equipment is accelerating, stimulating growth in domestic market demand.
In the coming years, the capacity expansion and production line upgrades of lithium battery companies will create sustained demand for lithium battery production equipment and automated production lines. It is predicted that the global lithium battery equipment market can be divided into three phases. From 2020 to 2022, driven by the expansion of lithium battery manufacturers, the lithium battery equipment market will experience rapid growth, followed by a relatively stable period. After 2026, with accelerated demand, the market will experience rapid growth again. The market size is projected to reach 47 billion yuan by 2030.
During the research and design process, there will inevitably be various problems. This requires our researchers to continuously summarize their experiences during the design process in order to promote the continuous innovation of products.
