On September 28th, Frost & Sullivan's (Frost & Sullivan, abbreviated as: Frost & Sullivan) 2nd New Investment Expo and the 17th Frost & Sullivan Global Growth, Innovation and Leadership Summit (abbreviated as 'Frost & Sullivan New Investment Conference') were grandly held at the Shangri-La Hotel in Pudong, Shanghai.
The forum, themed 'New Trends in New Energy and Carbon Neutrality Investment and Financing', invited 11 heavyweight guests and industry experts. It brought together many new energy and carbon neutrality enterprises, investment institutions, and professional service providers to jointly focus on the new trends in new energy and carbon neutrality investment and financing, explore forward-looking investment opportunities in this field, and discuss successful paths in the capital market.
Zhang Yixiang, President of Singaporean MVGX Technology Company
At this forum, Zhou Bo, Deputy Secretary-General of the Power Battery Application Branch and General Manager of the Industry Research Center of the China Chemical and Physical Power Sources Industry Association, delivered a speech on the analysis of the future development of the lithium battery industry chain.
The speech mainly unfolds into three parts: analysis of global lithium battery demand, global competition landscape and expectations for lithium batteries, and the advantages and opportunities of Chinese lithium battery industry chain enterprises.
I. Global Lithium Battery Demand Analysis
Zhou Bo pointed out that since the outbreak of new energy vehicles in 2014, China's lithium battery industry has transformed from consumer goods to high-quality power batteries, with quality even surpassing Japanese and Korean companies. With the growing demand in the new energy vehicle and energy storage markets, global lithium battery demand reached 510 GWh by 2023. China's new energy vehicle sales also increased significantly and it successfully expanded its export market, especially to the United States. China's lithium battery exports have also shown explosive growth, mainly destined for Europe, the United States, and Southeast Asia. It is estimated that by 2025, the total global lithium battery demand will be nearly 1,948 GWh, while the share of Chinese lithium battery enterprises in the global market continues to rise.
II. Global Lithium Battery Competition Landscape and Expectations
Zhou Bo said that Chinese lithium battery companies such as CATL maintain a stable position in the global market. Although their domestic share has declined, global revenue is still growing. Others include Contemporary Amperex Technology Co., Ltd.Guoxuan High-TechAs corporate export growth accelerates, it is expected that by 2025, China's lithium battery production capacity could reach 70% of the global total.
The future sales volume of European and American automakers is uncertain, while the EU's new policy aims to accelerate the layout of Chinese auto parts companies in Europe. Although many companies have overseas projects, relatively few have been actually implemented. Additionally, China's power storage industry is gradually emerging, but its development space is limited. In contrast, the household energy storage market has higher growth potential and is expected to become the mainstream application scenario in the future.
III. Competitive Advantages and Opportunities of Enterprises in the Lithium Battery Industry Chain
Zhou Bo stated that China has the world's most complete lithium battery industry chain, with most materials domestically produced from minerals to specialized segments, reducing costs. The complete domestic supply chain and substantial investment in new energy vehicle research and development have made China lead Europe and America in terms of speed and development. Although Europe and America have strong intentions for industrial development, establishing a complete industry chain like China's takes time. Therefore, China's new energy vehicle and lithium battery industries have huge opportunities for going global, especially in Southeast Asia and Africa.
China's leading position in lithium battery technology and cost control has brought tremendous opportunities to the global market in the future. For enterprises, although domestic industrial development is expected to slow down due to economic and market demand changes in the next two to three years, after 2025, it is expected that China's lithium battery industry will embrace a new round of rapid development opportunities.
