Good News on Listing | Frost & Sullivan Congratulates Goodde Power Systems (Suzhou) Co., Ltd. (301680.SZ)

Gude Power Materials focuses on the high-growth track of thermal runaway protection of power batteries, benefiting from the upgrade of mandatory battery safety standards, with rigid and continuously increasing downstream demand;

Gude Power Materials masters the core technologies of mica materials and high-performance resins, constructing full-scenario protection solutions from cells to packs, forming a high business technical barrier;

Gude Power Materials has a market share of 15%-20% in the global battery system mica protection material market, ranking among the top in the industry, being a national-level specialized and sophisticated little giant with a stable leading position;

Gude Power Materials continues to increase its R&D investment, with cumulative R&D investment of 89.7033 million yuan over the past three years, owning 96 patents, and technical reserves supporting product iteration and new business expansion.

Frost & Sullivan has long been concerned about the global and Chinese industrial manufacturing industries, publishing a large number of research reports that are widely cited in the prospectuses of leading ChiNext-listed companies, helping customers accelerate growth.

As consumers demand higher range for electric vehicles and the energy density of lithium-ion batteries continues to increase, materials with higher energy density may have lower thermal stability, leading to frequent safety incidents involving thermal runaway in power batteries. Thermal runaway in power batteries refers to the phenomenon where a local severe temperature rise occurs within a battery pack, triggering a chain reaction that causes uncontrollable temperature rise in the battery, usually caused by external high temperatures, overcharging, over-discharging, puncture, short circuit, or violent collision.

Improving the safety of power batteries has become the primary prerequisite for the stable development of the electric vehicle industry. In May 2020, the Ministry of Industry and Information Technology issued the 'Safety Requirements for Power Batteries Used in Electric Vehicles', 'Safety Requirements for Electric Vehicles', and 'Safety Requirements for Electric Buses', which were officially implemented on January 1, 2021. Among them, the 'Safety Requirements for Power Batteries Used in Electric Vehicles' added a thermal diffusion test to the battery system, requiring that battery cells do not catch fire or explode within 5 minutes after thermal runaway, reserving safe escape time for passengers. In April 2023, the China Automotive Power Battery Industry Innovation Alliance released the 'White Paper on the Action Plan for High-Quality Development of Power Batteries (2023-2025)', proposing to build a development goal for a full-life-cycle safety assurance system for power battery systems, requiring that when a battery product experiences thermal runaway, the vehicle does not catch fire.

Currently, new energy vehicle manufacturers mainly adopt two methods: active protection and passive protection to prevent the spread of thermal runaway in power batteries. Active protection refers to actively adjusting the internal temperature of the battery by using air, liquid, or refrigerant cooling; passive protection mainly involves physically isolating the battery cells, battery modules, and battery packs using various flame-retardant insulating materials, common types including mica materials, aerogels, flame-retardant foam, ceramicized silicone rubber, etc.

With the development of new energy vehicles globally and the continuous improvement of power battery energy density, the demand for global battery system safety protection products has also maintained high growth. The global battery system safety protection market size increased from 1.75 billion yuan in 2020 to 11.54 billion yuan in 2024, with an annual compound growth rate of 60.2%. Based on future growth in new energy vehicle sales and innovative R&D of new materials, the global battery system safety protection market is expected to maintain stable growth and reach 32.42 billion yuan by 2029. Splitting by downstream battery applications, the market size for cell-level battery safety protection reached 6.56 billion yuan in 2024, accounting for 56.9%; the market shares for module and pack levels were 16.4% and 26.7%, respectively. Currently, the main integration method in the global market is traditional cell, module, and pack integration (CTM). In recent years, to improve the overall energy density of battery packs, the trend of directly integrating cells into battery packs without modules (CTP) and battery-to-vehicle body or chassis integration (CTB, CTC) has gradually become popular. In the structures of CTP, CTB, and CTC without modules, the overall energy density of the battery pack is increased, while the distance between the cells and the metal structure parts of the battery box is closer, posing higher requirements for thermal runaway protection. In the future, battery safety prevention and control needs will further concentrate between cells, while the demand for protection materials between modules will decline.