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Economic operation of the national battery industry from January to March 2021


Time:

2021-07-02

From January to March 2021, among the main products of the national battery manufacturing industry, the output of lithium-ion batteries was 4.79 billion, an increase of 83.4%; the output of lead storage batteries was 64.902 million kVAh, an increase of 46.5%; the primary batteries and primary battery packs ( Non-buckle type) output was 10.05 billion pieces, a year-on-year increase of 33.0%.

1. Production

From January to March 2021, among the main products of the national battery manufacturing industry, the output of lithium-ion batteries was 4.79 billion, an increase of 83.4%; the output of lead storage batteries was 64.902 million kVAh, an increase of 46.5%; the primary batteries and primary battery packs ( Non-buckle type) output was 10.05 billion pieces, a year-on-year increase of 33.0%.

In March, the national output of lithium-ion batteries was 1.93 billion, a year-on-year increase of 52.8%; the output of lead-acid batteries was 25.435 million kVA, an increase of 18.4%; the output of primary cells and primary battery packs (non-button) was 3.89 billion. A year-on-year increase of 8.6%.

2. Benefits

From January to March 2021, the operating income of battery manufacturing enterprises above designated size nationwide was 223.91 billion yuan, a year-on-year increase of 73.3%, and the total profit realized was 13.12 billion yuan, a year-on-year increase of 420.2%.

2. China Energy Storage Network News

As the lead-acid battery industry enters a period of increased concentration and dividends, the intensity of industry competition has begun to decline, and an oligopoly pattern has begun to emerge. A reporter from the Financial Associated Press learned that recently listed companies that focus on lead-acid batteries have shown beautiful transcripts. Under the dual-line layout of lead-acid batteries and lithium-ion batteries, the net profit of some companies has increased by three times.

"In the first quarter, the company's automotive battery sales maintained a good growth trend since April last year, and the single-quarter sales and main business revenue hit a record high." The relevant person in charge of the starter battery leader Camel (601311.SH) said.

According to data from the Ministry of Industry and Information Technology of China, from January to December 2020, among the main products of the battery manufacturing industry in the country, the output of lithium-ion batteries was about 18.85 billion, an increase of 14.4% year-on-year; the output of lead-acid batteries was about 227.356 million kVAh , An increase of 16.1% year-on-year. In the global market, both lead-acid batteries and lithium-ion batteries occupy a dominant position in secondary batteries. It is expected that the overall market demand will continue to grow.

Lead-acid battery performance rises

On April 8, Camel announced a quarterly report forecast. The forecast showed that benefiting from the formation of the lead-acid battery recycling industry chain, the company achieved a net profit of 258 million to 288 million yuan, a year-on-year increase of 295.32%-341.29%.

Camel Co., Ltd. simultaneously released last year's annual report forecast. Last year, the company's lead-acid battery sales volume was 28.103 million KVAH, a year-on-year increase of 14.34%, a record high. The company’s net profit attributable to shareholders of listed companies last year was 616 million yuan, a year-on-year increase of 30.14%.

Tianneng shares (688819.SH) also stated that net profit attributable to shareholders of the parent company last year was 2.28 billion yuan, a year-on-year increase of 52.83%. In addition to the impairment of fixed assets, Narada Power (300068.SZ) also announced that last year's net profit may reach 250 million yuan.

Pacific Securities analyst Bai Yu believes that at present, the lead-acid battery industry has entered a bonus period of increased concentration, the industry's competition has declined, and it has begun to enter the stage of oligopoly. Camel is one of the industry's duopoly and will continue to benefit in the future. .

Some analysts believe that the lead battery market has obvious competitive advantages and occupies a dominant position in the secondary battery. It is also the main battery for electric light vehicles, electric special vehicles and automobile start-stops and other vehicles and equipment. The overall market demand It will continue to grow steadily.

In the future, the application fields of lead-acid batteries will continue to be enriched and expanded. With the in-depth application of 5G communication technology, lead-acid batteries will also move towards the direction of intelligence such as traceability, remote control, and interconnection of things.

Personnel from the Securities Department of Tianneng Shares also stated that in terms of lead storage batteries, relying on product and process innovation, the company has successfully applied sealed maintenance-free lead storage batteries to the power field of electric light vehicles on a large scale, greatly expanding the development space of the lead storage battery industry. The company has formed a complete and independent core technology system in terms of the performance of lead-acid batteries in harsh environments such as low temperature and the improvement of production efficiency. It has successfully realized industrialization, and its comprehensive gross profit margin has increased by 2.3 percentage points to 22.84%.

Two-line layout of lithium battery products

It is worth noting that all lead battery companies have begun a two-line layout of lead storage and lithium batteries.

"Although the current second round of the market is dominated by lead batteries, the future market share of lithium batteries will also reach about 30%." An official from the securities department of Tianneng said that Tianneng’s investment in lithium battery production capacity is similar to that of lead batteries. With a capital investment of more than RMB 8 billion, the two are equally important. The investment in the production capacity of lead batteries is mainly for technological upgrading, and the investment for the production capacity of lithium batteries is mainly for new construction.

Camel’s annual report also shows that the company focuses on both the lead-acid battery recycling industry chain and the new energy lithium battery recycling industry chain. Even if the car uses lithium batteries as power batteries, lead-acid batteries are still needed for starting and assisting, and powering the low-voltage control module.

According to the analysis of the above-mentioned industry insiders, the current growth rate of new energy vehicles is relatively fast, but the absolute value of the increase is not high. Moreover, the current auxiliary batteries for most new energy vehicles still use lead-acid batteries. The proportion of lithium batteries will increase in the future, but in the field of starting, lead-acid batteries will still dominate, and the two will coexist and go hand in hand for a long time.

Taking Camel as an example, the company's main measures for lead-acid battery recycling include strengthening the domestic aftermarket terminal coverage and increasing the recycling of waste batteries; while the lithium battery recycling takes 12v/48v low-voltage lithium battery products as the main development direction, and actively expands EVs. Platform business, energy storage business, lithium battery recycling business, etc., finally found a unique track in the field of new energy.

Minsheng Securities analyst Deng Jianquan believes that with the sinking of sales channels and the optimization of customer structure, the market share of Camel's lead-acid batteries in the start-stop battery and start-up battery market will also increase steadily. Its new product 48V start-stop lithium battery is currently in the stage of heavy volume. According to HIS, my country's 48V demand side compound growth rate will exceed 85% in the next five years.

The relevant person in charge of Tianneng shares also believes that in a certain period of time, lead-acid and lithium batteries will be in parallel, and lead-acid will continue to be dominant. In the incremental market, the penetration rate of lithium batteries does have a trend of increasing year by year, but it will not fully replace lead-acid. Mainly because each has different consumer needs.

 

Economic operation of the national battery industry from January to March 2021