Good News on Listing | Frost & Sullivan Assists Jiangsu Zhengli New Energy Battery Technology Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (3677.HK)

Jiangsu Power New Energy Battery Technology Co., Ltd. (hereinafter referred to as 'Power New Energy') successfully listed on the main board of the Hong Kong capital market on April 14, 2025. The company plans to issue approximately 121.52 million shares, with 10% being for Hong Kong sales and 90% for international sales, along with an additional 15% of additional rights. The issue price per share is HK$8.27, with 300 shares per lot, raising a net amount of approximately HK$1 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

• The company is one of the top ten enterprises in China's power battery market, ranking 10th nationally in terms of installed power battery capacity in 2023;

   

• The company ranks 7th in the lithium iron phosphate power battery segment and 8th in the ternary power battery segment;

   

• The company ranked second among the top ten companies in the industry in terms of the growth rate of installed power battery capacity for 2022-2023;

   

• The company's lithium iron phosphate battery business has witnessed rapid growth, ranking first among the top ten companies in the industry in terms of growth rate in 2023;

   

• The company is one of the fastest-growing enterprises in the power battery industry, with revenue increasing by 224.2% year-on-year in 2023.

Power batteries refer to rechargeable battery systems used to provide driving energy for vehicles such as electric vehicles, electric ships, and electric aircraft. Electric vehicles are classified based on their different power types, mainly including pure electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs, including extended-range electric vehicles (EREVs), hybrid electric vehicles (HEVs), and fuel cell electric vehicles (FCEVs).

As one of the most critical and indispensable components of electric vehicles, power batteries are the source of energy for the entire vehicle, directly affecting the performance of electric vehicles, including performance indicators such as range, safety, service life, charging rate, and temperature adaptability. Electric vehicle batteries use a variety of mainstream chemical systems, mainly including lithium-ion batteries, sodium-ion batteries, and lead-acid batteries. Among them, lithium-ion batteries are currently the most important type of power battery, widely used due to their high energy density, low self-discharge rate, and long cycle life. At the same time, other types of power batteries also have certain advantages. Compared with lithium-ion batteries, sodium-ion batteries have the advantages of abundant raw materials, wide distribution, better safety and low-temperature performance, and a longer cycle life. Their charging speed is faster than that of lithium-ion batteries. However, the industrial development of sodium-ion batteries still faces challenges such as low energy density and immature technology. As an environmentally friendly and efficient battery, lead-acid batteries have a lower energy density than lithium-ion batteries and are currently mainly used in HEVs.

According to different cathode materials, power lithium-ion batteries mainly include ternary batteries and lithium iron phosphate (LFP) batteries. Some new types of lithium-ion batteries are also under development, such as lithium manganese iron phosphate (LMFP), which has shown excellent performance in terms of safety and low-temperature capabilities. Most ternary batteries in China are NCM batteries, which mainly consist of NCM811, NCM523, and NCM613 materials, with the numbers representing the content ratios of nickel, cobalt, and manganese, respectively.

Electric vehicles use electric motors powered by power batteries instead of internal combustion engines (ICE) alone to drive the vehicle. Electric vehicles mainly include pure electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), extended-range electric vehicles (EREVs), and hybrid electric vehicles (HEVs). Other types of electric vehicles (such as fuel cell vehicles) account for only a very small market share.

Global electric vehicle sales increased from 5.5 million units in 2020 to 26.5 million units in 2024, with a compound annual growth rate of 48.3%. It is expected that by 2029, sales will further increase to 70.2 million units, with a compound annual growth rate of 21.5%. This growth is mainly driven by technological progress and innovation in the electric vehicle industry, further improvement of the industry value chain, favorable policies, and the transition from fossil fuel energy to renewable energy. Specifically, the sales of PHEVs increased from 1.0 million units in 2020 to 6.8 million units in 2024, with a compound annual growth rate of 62.4%, higher than any other type of electric vehicle; it is expected that by 2029, sales will further increase to 18.6 million units, with a compound annual growth rate of 22.1%.

Based on sales in 2024, China is the world's largest electric vehicle market. Favorable policy support, continuous progress in electric vehicle technology, and continuous improvement of charging infrastructure are driving the development of China's electric vehicle industry. From 2020 to 2024, China's electric vehicle sales increased from 1.8 million to 13.8 million units, with a compound annual growth rate of 66.9%; it is expected that by 2029, sales will further increase to 32.1 million units, with a compound annual growth rate of 18.4%. Compared to BEVs, PHEVs have seen faster development in recent years due to their longer driving range and flexible charging options. China's PHEV sales increased from 0.3 million units in 2020 to 5.1 million units in 2024, with a compound annual growth rate of 112.7%; it is expected that by 2029, sales will further increase to 15.2 million units, with a compound annual growth rate of 24.1%; the predicted compound annual growth rate is higher than that of BEVs and will exceed BEV sales by 2025. HEVs are also playing an increasingly important role in the transformation of traditional vehicles. China's HEV sales increased from 0.4 million units in 2020 to 0.9 million units in 2024, with a compound annual growth rate of 22.7%. It is expected that HEVs will continue to grow rapidly in the future, reaching 2.0 million units by 2029, with a compound annual growth rate from 2024 to 2029 of 15.8%.

The global electric vehicle battery market is experiencing rapid development, mainly driven by the growth of BEV and PHEV markets. The global installed capacity of electric vehicle power batteries increased from 141.5 GWh in 2020 to 900.2 GWh in 2024, with a compound annual growth rate of 58.8%. It is expected that by 2029, the capacity will further increase to 3,564.5 GWh, with a compound annual growth rate of 31.7%. The rapid growth of PHEVs, market penetration, and continuous improvement in PHEV battery performance have driven the installed capacity of PHEV batteries from 17.5 GWh in 2020 to 156.0 GWh in 2024, with a compound annual growth rate of 72.9%. It is expected that by 2029, the capacity will further increase to 981.2 GWh, with a compound annual growth rate of 44.5%.

Thanks to the continuous expansion of the electric vehicle market in China, the installed capacity of electric vehicle batteries has also grown rapidly. The installed capacity of electric vehicle batteries in China increased from 64.2 GWh in 2020 to 549.9 GWh in 2024, with a compound annual growth rate of 71.1%. It is expected that by 2029, it will further increase to 1,961.4 GWh, with a compound annual growth rate of 29.0%. Consistent with the global electric vehicle battery market, among various types of electric vehicle models, the growth in PHEV batteries and their projected installed capacity are the fastest. The installed capacity of PHEV batteries in China increased from 4.5 GWh in 2020 to 118.7 GWh in 2024, with a compound annual growth rate of 127.2%. It is expected that by 2029, it will further increase to 848.6 GWh, with a compound annual growth rate of 48.2%. PHEVs can provide a mode of pure electric driving for daily short trips and gasoline for long-distance travel, meeting consumers' needs for pure electric driving experience while avoiding range anxiety. Regulatory policies have also promoted the growth of PHEVs in China because automakers face increasing pressure to reduce fuel consumption. Technological innovation in PHEVs has accelerated the renewal and replacement of fuel vehicles. Manufacturers are also promoting the installation of larger-capacity batteries in PHEVs to meet consumer needs.

● Continuous technological innovation to improve product performance

In recent years, researchers and manufacturers have been driving the development of battery technology, focusing on new materials, battery design, and overall efficiency improvements. All-solid-state batteries, sodium-ion batteries, high-nickel cathodes, silicon anodes, etc., are important directions for innovation in the power battery industry. In addition, industry participants are also focusing on enhancing product performance and ensuring product quality through measures such as improving product yield and efficiency, digitalizing production lines to enhance adaptability, flexible production line design, and applying artificial intelligence to optimize production lines in real time.

● Reduce costs throughout the entire process

The cost of power batteries has a significant impact on the overall cost of electric vehicles. With increasingly fierce competition among vehicle manufacturers and price wars, power battery producers are facing increasing pressure. To improve cost-effectiveness, they continuously reduce prices throughout the production process; take measures to ensure stable supply of core raw materials, control equipment costs, improve line efficiency, and optimize product design.

● Battery manufacturers and automakers are collaborating more closely

As competition in China's electric vehicle industry intensifies, automakers are developing and launching more models and applying different technical routes. This requires automakers and battery suppliers, especially power battery manufacturers, to collaborate more closely in areas such as product co-research, production optimization, and supply chain security. By collaborating more closely with automakers, battery manufacturers can further ensure that their product research and development direction, production efficiency, and supply stability better meet customer needs.

● Flexible manufacturing capabilities are becoming increasingly important

With the rapid development of technologies such as NMC and LFP batteries and the swift changes in market structure and technical routes, battery manufacturers may face capacity shortages at certain points in time or for specific types of batteries. Therefore, enhancing the flexible manufacturing capabilities of manufacturers has become increasingly important, enabling them to quickly adapt to changes in market structures.