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Crazy expansion, cross-border has become the norm of the lithium battery industry. However, with the impact of factors such as slowing market demand, the lithium battery industry has also entered a deep adjustment.

"The future development trend of the lithium battery industry is still positive." Li Pan, an analyst at Shanghai Steel's new energy division, believes that "with the continuous expansion of the new energy vehicle market and technological progress, the demand for power batteries will continue to grow." At the same time, policy guidance and norms will promote the industry to high-quality development, avoid disorderly competition, and the competitiveness and profitability of enterprises will be further improved."

Multiple lithium project investment "hit the brakes"

Recently, a listed company pressed the "stop button" on the subscription. The company previously disclosed a fixed increase plan shows that it intends to raise no more than 2.5 billion yuan, the original plan to invest in lithium battery anode materials and other projects, and finally, the amount of fixed increase plan to terminate the end.

And this is not alone. Since the beginning of this year, a number of listed companies in the lithium battery industry chain have announced the termination of fixed additions and the termination of project construction. In April alone, five listed companies terminated or suspended the construction of related projects, and most of these companies were previously "cross-border" into the lithium battery industry. It involves ternary materials, composite copper foil, electrolyte, battery grade lithium carbonate, lithium iron phosphate battery, lithium iron phosphate energy storage lithium battery and other links in the lithium battery industry chain. For the reasons for terminating or suspending the construction of the project, changes in the external market environment and not advancing boldly have become "high-frequency words".

Over the past year, when many companies are still investing, many companies have been keenly aware of changes in the industry, and many lithium related projects have been halted, terminated, or reduced investment, or changes have begun to appear.

Since the second half of 2023, some cathode materials and electrolyte enterprises have terminated the construction of related projects.

He Lixiang, general manager of Zhishan Investment, believes that the delay of capacity planning, the shutdown of production lines and the bankruptcy and reorganization of some companies are obvious signs of industry supply adjustment. "The contraction of industry supply is an inevitable and healthy economic phenomenon that will help the market adjust itself."

The development trend of lithium battery industry remains unchanged

In recent years, the lithium industry has grown rapidly, enterprises have crossed borders and expanded production, and all links of the industrial chain have shown a growth trend. However, as demand slows down, the track is crowded, superimposed overseas constraints and other factors, since last year, the entire industry chain has gradually begun to "cool down".

According to the research of industry body High-tech Industry Research Institute (GGII), after experiencing rapid growth from 2020 to 2022, the lithium battery industry chain showed signs of slowing growth in 2023. The market weakness is mainly reflected in three key aspects: a significant reduction in the number of new tenders, a low completion rate of corporate targets and a significant decline in product prices.

According to GGII's research data, the amount of bidding for lithium battery industry chain in 2023 has been reduced by nearly half compared with 2022. Most companies failed to achieve the goals they set at the beginning of the year, and only a few were able to meet more than 60 percent of the intended targets, while the majority achieved between 40 and 55 percent. Some third-tier and below enterprises are beginning to face business difficulties due to overcapacity, lack of customers and cost disadvantages.

This trend is also reflected in the 2023 annual report. According to GGII incomplete statistics, the total revenue of China's lithium listed companies in 2023 is about 1.64 trillion yuan (data excluding large non-lithium business in enterprises, the same below), down 5.1% year on year; The total net profit was about 106 billion yuan, down 38.9% year-on-year, and the industry profit shrank significantly.

In the view of the industry, the current stage adjustment of the lithium battery industry is the only way for each industry to mature. Looking forward to the future, the trend of good development of the lithium battery industry remains unchanged.

"Under the general trend of global low-carbon green transformation, especially in the rapid development of new energy vehicles, energy storage and other fields, lithium battery as a core component, its market demand is expected to continue to grow." For the future development of the lithium industry, Bu Yi Li said that with the continuous progress of technology, the performance and cost of lithium batteries are expected to continue to improve, and its application scope will be further expanded, bringing more market opportunities for the lithium industry. "Industry competition may intensify, concentration may be further improved, and the market share of enterprises with technological innovation and quality advantages is expected to continue to increase."

Article from "PKT AUTO PARTS"

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