With the rapid development of lithium-ion batteries in recent years and strong government support, many people believe that we've entered the era of lithium-ion batteries, and that traditional batteries like lead-acid batteries have long been obsolete. If you think this way, you've certainly been misled by the government's hype. Lead-acid batteries still dominate, and will maintain a stable position for at least the next few years. Let's take a fresh look at the real lead-acid battery industry!
Overview of the lead-acid battery industry
Industry Technology Level and Characteristics. With increasing environmental inspection efforts and the deepening implementation of the "Standard Conditions," the lead-acid battery industry will further raise entry barriers, eliminate outdated production, basically achieve mechanized manufacturing, and effectively improve its technological level.
The unique business model of the lead-acid battery industry:
First, the procurement model. Lead-acid battery companies generally procure on an as-needed basis, based on order volume. Since lead constitutes a large proportion of raw material procurement and ties up significant capital, companies in the industry typically establish close cooperative relationships with large lead smelting companies and also procure some products through commodity agents.
Second, production model. Companies in the industry generally adopt a production model based on sales orders, and maintain a certain safety stock for some commonly used specifications of products.
Third, sales models. The plate products are primarily sold to domestic lead-acid battery manufacturers. Lead-acid battery companies generally sell their products both domestically and internationally. Domestic sales mainly involve direct sales to telecommunications operators, UPS manufacturers, and emergency electrical appliance manufacturers, while the automotive starting and maintenance market and the electric bicycle maintenance market generally use a distribution model. International sales primarily involve sales to foreign trading companies, or direct sales to telecommunications operators, UPS manufacturers, etc., through establishing local offices.
The industry exhibits cyclical, regional, and seasonal characteristics. The lead-acid battery industry, however, does not show a pronounced cyclical pattern.
On the one hand, lead-acid batteries are widely used in various fields such as transportation, communication, power, railway, special equipment, computers and scientific research, and are a basic product of the national economy.
On the other hand, the characteristic of lead-acid batteries having a limited lifespan and requiring periodic replacement determines their inelastic demand. The lead-acid battery industry does not exhibit significant regional variations, primarily because it is a fundamental product of the national economy. The primary market (original equipment market) for lead-acid batteries shows little seasonality, while the secondary market (replacement market) exhibits some peak and off-peak season differences. In autumn and winter, due to lower temperatures, outdoor batteries are affected by temperature, resulting in decreased capacity and performance, leading to increased replacement demand compared to spring and summer.
The relationship between the lead-acid battery industry and its upstream and downstream industries.
The upstream industries of lead-acid batteries mainly include lead smelting and lead trading (commodity agents), sulfuric acid production, and plastics manufacturing. Lead-acid batteries are a fundamental product of the national economy, widely used in transportation, communications, power, railways, special equipment, computers, emergency equipment, and other fields. With economic and technological development, the demand for lead-acid batteries in these industries continues to grow. At the same time, the continuous improvement of lead-acid battery technology, product quality and performance, and its application areas are constantly expanding, leading to a surge in downstream industry demand. With the establishment and improvement of the lead-acid battery recycling system, the lead-acid battery industry chain will form a virtuous cycle of resources-products-recycled resources, and is expected to become a resource-saving circular development industry.
Classification of lead-acid batteries:
Based on application areas, my country's lead-acid batteries can be mainly divided into four categories: backup power batteries, energy storage batteries, starting batteries, and power lithium batteries.
Backup power batteries are important storage batteries used for communication backup power, uninterruptible power supplies (UPS), emergency lighting power and other backup power.
Energy storage batteries refer to batteries suitable for storing energy in solar power generation equipment, wind turbines, and other renewable energy sources.
Starting batteries are important storage batteries used in automobiles, motorcycles, and internal combustion engines for starting, ignition, and lighting.
Power lithium batteries are mainly used as power sources for electric vehicles such as electric bicycles, electric special vehicles (electric sightseeing vehicles, golf carts, patrol cars, forklifts, etc.), low-speed electric passenger vehicles, and hybrid electric vehicles.
