China's lithium-ion battery industry continues to lead the world, with production reaching a new high in 2023

China’s lithium-ion battery industry continues to lead the world, with production reaching a new high in 2023

China’s lithium-ion battery industry

China’s lithium-ion battery industry continues to lead the world, with production reaching a new high in 2023. Lithium-ion batteries are secondary batteries (rechargeable batteries) that rely mainly on the movement of lithium ions between the positive and negative electrodes to work.

During the charging and discharging process, Li+ is intercalated and deintercalated back and forth between the two electrodes: during charging, Li+ is deintercalated from the positive electrode, and is embedded in the negative electrode through the electrolyte, and the negative electrode is in a lithium-rich state; during discharging, the opposite is true. Batteries generally use materials containing lithium elements as electrodes and are representative of modern high-performance batteries.

Lithium-ion batteries have high energy density and high average output voltage. Low self-discharge, good batteries, less than 2% per month (recoverable). No memory effect. Wide operating temperature range of -20℃~60℃. Excellent cycle performance, fast charging and discharging, charging efficiency of up to 100%, and high output power. Long service life. It does not contain toxic and harmful substances and is called a green battery.

Lithium-ion batteries have high volume-to-energy and mass-to-energy ratios, are rechargeable and pollution-free, and have the three major characteristics of the current development of the battery industry. Therefore, they have grown rapidly in developed countries. The development of the telecommunications and information markets, especially the extensive use of mobile phones and laptops, has brought market opportunities to lithium-ion batteries.

Polymer lithium-ion batteries in lithium-ion batteries will gradually replace liquid electrolyte lithium-ion batteries with their unique advantages in safety and become the mainstream of lithium-ion batteries. Polymer lithium-ion batteries are known as the “batteries of the 21st century” and will open up a new era of storage batteries, with very optimistic development prospects.

Industry status

In recent years, China’s lithium-ion battery industry has maintained a sustained and rapid development momentum. In 2023, the cumulative value of my country’s lithium-ion battery production reached an astonishing 24,527,749,000 units, and the total amount at the end of the period increased by 3.5% over the previous year. This growth rate is still quite impressive on such a large base.

The development of China’s lithium-ion battery industry has benefited from many factors. First, with the explosive growth of the new energy vehicle market, the demand for power batteries has surged, providing a broad market space for the lithium-ion battery industry.

Secondly, the popularity and replacement of consumer electronic products have also driven the demand for lithium-ion batteries. In addition, the support of national policies and the improvement of the industrial chain have created a good external environment for the development of the lithium-ion battery industry.

However, China’s lithium-ion battery industry is also facing some challenges. First, market competition is becoming increasingly fierce, and price wars are frequent, resulting in the compression of corporate profit margins. Secondly, external factors such as price fluctuations of raw lithium-ion electrode materials and international trade frictions have also brought certain impacts on the development of the industry. Finally, the acceleration of technological innovation and product upgrading has put forward higher requirements for enterprises.

According to the “2024-2030 China Power Lithium-ion Battery Market Analysis and Investment Prospects Research Report” released by Bosi Data, the cumulative value of my country’s lithium-ion battery production in 2023 reached 24527749,000 units, and the total amount at the end of the period increased by 3.5% over the previous year.

Shipments and growth:

In 2022, China’s total lithium-ion battery shipments were 738 GWh, an astonishing year-on-year increase of 127%. Among them, the shipments of power lithium-ion batteries reached 545.9GWh, a year-on-year increase of 148.5%.

Globally, in 2022, the global lithium battery industry shipments reached 957.7 GWh, a year-on-year increase of 70.3%. China accounted for 69.0% of the global lithium-ion battery shipments, mainly due to the substantial growth in the shipments of automotive power batteries and energy storage batteries.

Advances in the lithium-ion battery industry are improving battery longevity
Advances in the lithium-ion battery industry are improving battery longevity

Sales revenue and growth:

In 2022, China’s lithium-ion battery sales revenue exceeded 672 billion yuan, a year-on-year increase of 115%. This data reflects the high profitability and market potential of the lithium-ion battery industry.

Product structure changes:

Compared with 2016, the export product structure of China’s lithium-ion batteries has changed significantly in 2022. The number of lithium-ion batteries for consumer products is decreasing, while the number of lithium-ion batteries for power and energy storage is growing rapidly. This change reflects the changes in market demand for different types of lithium-ion batteries and technological development trends.

Output of different types of batteries:

In 2022, China’s power battery output was 545.9GWh. Among them, the output of ternary batteries was 212.5GWh, accounting for 38.9% of the total output, an increase of 126.4% year-on-year; the output of lithium iron phosphate batteries was 332.4GWh, accounting for 60.9% of the total output, an increase of 165.1% year-on-year. This data shows that lithium iron phosphate batteries dominate the power battery market and are growing faster.

Installed capacity of power batteries:

In 2022, China’s installed capacity of power batteries was 294.6 GWh, an increase of 90.7% year-on-year. Among them, the installed capacity of ternary batteries was 110.4GWh, accounting for 37.5% of the total installed capacity, an increase of 48.6% year-on-year; the installed capacity of lithium iron phosphate batteries was 183.8GWh, accounting for 62.4% of the total installed capacity, an increase of 130.2% year-on-year. This data shows that lithium iron phosphate batteries also dominate the power battery installation market and grow faster.

Global power battery company rankings:

According to data from SNE, a Korean market research organization, six of the top 10 companies in the world in terms of power battery installation in 2022 are from China, namely CATL, BYD, Sinovation, Guoxuan High-tech, Xinwanda and Farasis Energy. This shows that China has strong competitiveness and influence in the global power battery market.

Export situation:

In 2022, the export volume of China’s lithium-ion batteries was 3.773 billion, a year-on-year increase of 10.06%. The export value reached US$50.919 billion, a year-on-year increase of 79.12%. In terms of export region distribution, the United States is the region with the highest export value of lithium-ion batteries in China, reaching US$10.12 billion, accounting for 19.87% of the total export value. These data reflect the competitiveness and export potential of China’s lithium-ion batteries in the international market.

Market Prospects

Despite many challenges, the market prospects of China’s lithium-ion battery industry are still worth looking forward to.

Market demand continues to grow. With the further expansion of the new energy vehicle market and the continuous upgrading of consumer electronics products, the market demand for lithium-ion batteries will continue to grow. Especially in the field of energy storage, the application prospects of lithium-ion batteries are broad and are expected to become a new growth point in the industry.

Technological innovation promotes industrial upgrading. In the future, technological innovation will become a key factor in promoting the development of the lithium-ion battery industry. By introducing advanced technologies, increasing R&D investment, and promoting industry-university-research cooperation, China’s lithium-ion battery industry will achieve more breakthroughs in energy density, cycle life, safety, etc., and enhance the overall technical level and product competitiveness.

The pace of internationalization is accelerating. With the continuous development of global trade and the strengthening of the strength of Chinese lithium-ion battery companies, more and more companies will accelerate the expansion of international markets. By participating in international competition and strengthening cooperation and exchanges with international advanced enterprises, China’s lithium-ion battery industry will further enhance its position and influence in the international market.

Policy support promotes industry development. The government will continue to increase its support for the lithium-ion battery industry and introduce relevant policies and measures to promote the healthy development of the industry. For example, it will increase support for new energy vehicles and energy storage, optimize the industrial structure, and provide a good policy environment and market opportunities for the industry.

In summary, after a period of rapid development, China’s lithium-ion battery industry still has huge development potential and market prospects, although it faces certain market adjustments and technical challenges.

By strengthening efforts in technological innovation, market expansion, and industrial upgrading, China’s lithium-ion battery industry is expected to achieve more stable and sustainable development in the future.

At the same time, investors and enterprises should fully consider factors such as market trends, policy environment, technological progress, and competitive situation when formulating strategies and making decisions to cope with possible risks and challenges. In this process, Bosi Data will continue to pay attention to industry trends and provide accurate and timely market analysis and suggestions for relevant enterprises and investors.

The lithium-ion battery industry is innovating faster energy storage solutions
The lithium-ion battery industry is innovating faster energy storage solutions