Subsidy decline, material price increase lithium battery companies are facing a big reshuffle

Under the dual pressure of subsidy decline and material price increase, China's lithium battery industry may face a big reshuffle
.

In recent years, the rapid development of new energy vehicles has greatly driven the development of
China's lithium battery industry.
Data show that in 2017, the market size of lithium batteries in China has reached about 113 billion yuan, of which the scale of power lithium batteries is about 60 billion yuan
.
At present, there are more than 200 battery manufacturers in China, which is the country
with the most lithium battery manufacturers in the world.
It is expected that by 2020, China's share of the global battery market will reach more than
seventy percent.

However, the "cliff-like" decline in new energy vehicle subsidy standards since February 12 this year has also affected lithium battery companies
.
According to the new standard, the subsidy bracket increased from 3 to 5 gears, and the subsidy threshold was also increased from 100 kilometers to 150 kilometers, basically following the principle of the longer the cruising range and the higher the subsidy standard, because the subsidy standard adjustment is too fast, many enterprises to produce low energy density lithium batteries still have time to transform in the future, and with the domestic lithium battery industry in recent years, lithium battery products related materials generally increase prices, in the dual context of subsidy slippage, material price increases, This year, the performance of lithium battery companies has basically fallen
sharply.

Lithium battery products in addition to the power battery, can also be made into energy storage battery, between the two power battery price is higher, unlike the power battery, energy storage battery requirements for energy density is not high, but the safety and life of the battery requirements are extremely high, such as lithium iron phosphate battery, due to the relatively low energy density, in the field of power battery is gradually replaced by ternary lithium battery, and lithium iron phosphate battery safety is very good, most energy storage power stations choose lithium iron phosphate battery as energy storage battery, in fact, It is precisely because of the safety of lithium iron phosphate batteries that BYD has long used it as the preferred battery for new energy vehicles, and because of this, in the gradual emphasis on long cruising range today, BYD's lithium battery production has been surpassed
by the Ningde era, which focuses on high-energy density lithium batteries.