Research on the Lithium Battery Industry for New Energy Vehicles: Power Batteries Enter the Second Round of Global Structural Reconfiguration

III. Comprehensive Financial Analysis: Divergence in Scale, Profitability, and Efficiency (A) Profitability Space: Widening Revenue Divergence; Mechanism Innovation Smooths Gross Margin Volatility Revenue divergence among Chinese and Korean battery enterprises continues to widen. CATL’s overseas revenue and energy storage business have both delivered strong growth—its revenue surpassed LG Energy Solution’s in 2021, making it the global leader. In 2021, CATL’s power battery and energy storage businesses generated RMB 105.11 billion in revenue, up 154% year-on-year, with energy storage contributing RMB 13.62 billion—a staggering 601% increase year-on-year. Based on company financial reports and converted at prevailing exchange rates, LG Energy Solution, Samsung SDI, and SK On posted battery-related revenues of RMB 94.61 billion, RMB 58.02 billion, and RMB 16.11 billion respectively in 2021—up 25%, 11%, and 67% year-on-year. LG Energy Solution maintains a stable EV customer base but faces slowing growth; Samsung SDI’s consumer battery segment saw no significant capacity expansion, limiting its growth contribution; SK On’s power battery business remains in rapid expansion, sustaining high revenue growth. Its parent company, SK Innovation, announced at its September 2021 shareholders’ meeting plans to spin off its power battery business to enhance fundraising capabilities. In Q1 2022, CATL’s total revenue reached RMB 48.68 billion (+154% y-o-y); LG Energy Solution reported RMB 22.58 billion (+2 ppts y-o-y); Samsung SDI and SK On posted battery revenues of RMB 21.06 billion (+37% y-o-y) and RMB 6.55 billion (+139% y-o-y), respectively. Growing demand from BMW for Gen5 batteries accelerated Samsung SDI’s power battery revenue, while SK On benefited from surging orders from Ford and Daimler in Europe and North America, pushing its revenue to a new record. According to corporate announcements, LG Energy Solution expects its 2022 battery revenue to grow 8% to KRW 19.2 trillion (~RMB 100.4 billion); SK On has raised its revenue forecast to the KRW 7.5 trillion range (~RMB 39.2 billion), implying over 140% year-on-year growth. Rising raw material costs are pressuring domestic battery manufacturers’ profitability, whereas overseas peers enjoy more robust profit protection via floating pricing mechanisms and long-term procurement agreements. Since 2021, soaring battery-grade lithium carbonate prices have driven sharp increases in cathode and electrolyte material costs, significantly raising cell manufacturing expenses and squeezing margins for domestic battery makers. In 2021, CATL’s gross margin declined by 1.5 percentage points (ppts) year-on-year; EVE Energy’s fell by 7.4 ppts; Gotion High-Tech’s dropped by 6.6 ppts. By contrast, overseas battery makers smoothly passed through price hikes, preserving profitability: LG Energy Solution’s gross margin rose by 5.9 ppts y-o-y; Samsung SDI’s increased by 1.6 ppts. In Q1 2022, sustained upstream cost pressures—across the four core materials plus auxiliary materials—and delayed downstream price adjustments further eroded domestic players’ margins: CATL’s gross margin fell by 12.8 ppts y-o-y and 10.2 ppts q-o-q; EVE Energy’s declined by 13.2 ppts y-o-y and 7.8 ppts q-o-q; Gotion High-Tech’s dropped by 10.5 ppts y-o-y and 4.1 ppts q-o-q. Overseas peers mitigated raw material volatility using metal-price-linked pricing combined with long-term supply contracts, enabling timely price adjustments and stable profitability. LG Energy Solution’s gross margin stood at 17.8% in Q1 2022—down 0.4 ppts y-o-y but up 3.3 ppts q-o-q; Samsung SDI’s consumer battery and electronic materials businesses maintained solid profitability, yielding an overall gross margin of 21.1%—up 0.7 ppts y-o-y but down 0.8 ppts q-o-q.

May’s Transformation in New Energy and New Materials: The Triple Wave of Sodium-Ion Batteries, Large-Diameter Cylindrical Cells, and Energy Storage

On May 7, 2026, Fuding Times New Energy Technology Co., Ltd.—a wholly owned subsidiary of Contemporary Amperex Technology Co., Limited (CATL)—publicly released its environmental impact assessment document: it plans to invest RMB 5 billion to build a 40 GWh sodium-ion battery production facility, with a construction period of 24 months. This marks another critical step on the capacity front—following CATL’s April 2026 three-year, 60 GWh sodium-ion battery supply agreement with Haibosichuang. Why is this development highly noteworthy? First, sodium-ion batteries have transitioned from ‘demonstration’ to ‘large-scale commercialization.’ A 60 GWh order coupled with a 40 GWh capacity expansion signals that sodium-ion batteries are no longer merely a ‘technology reserve’ concept—they now possess proven large-scale commercial viability. For Fengqi New Energy, sodium batteries impose distinct current collector requirements versus lithium-ion batteries: per GWh, sodium batteries consume approximately 50% more aluminum foil than lithium-ion batteries—meaning their mass deployment will directly drive substantial growth in demand for carbon-coated aluminum foil. Second, cost advantages are materializing. Zhongke Haina’s latest-generation sodium-ion batteries have achieved an energy density exceeding 180 Wh/kg, with costs reduced to USD 50/kWh—roughly 30% lower than LFP batteries. When sodium-ion batteries become competitive simultaneously on both cost and performance, their penetration speed into applications such as energy storage systems (ESS), low-speed EVs, and e-bikes may far exceed expectations. Third, policy support and industrial chain synergy are converging. Guangdong Province’s 15th Five-Year Plan explicitly lists sodium-ion batteries as a key diversified energy storage technology; ESS and Alsym Energy recently signed an 8.5 GWh sodium-ion cell supply agreement—expanding application scope from e-bikes to grid-scale energy storage. Implications for Fengqi: The window for sodium-ion battery capacity expansion has opened. As a critical auxiliary material, carbon-coated aluminum foil requires proactive capacity planning and technological route development to secure a leading position in the sodium-ion battery current collector market. II. Globalization of Large-Diameter Cylindrical Batteries: LG Energy Solution’s ‘Comeback’ and China’s Response On April 30, 2026, South Korean media reported that LG Energy Solution is set to sign a 46-series cylindrical battery supply contract with BMW, valued at KRW 10 trillion (~RMB 5.3 billion), covering a 10-year term with annual deliveries of ~10 GWh. This marks LG Energy Solution’s first entry into BMW’s pure electric vehicle (BEV) battery supplier lineup. Previously, LG Energy Solution only supplied batteries for BMW’s mild hybrid electric vehicles (MHEVs). Three underlying strategic logics merit deeper reflection: First, European and American automakers are reshaping battery supply chains. BMW’s selection of LG Energy Solution’s 46-series cylindrical batteries reflects dual considerations: supply chain diversification and technology roadmap alignment. The 46-series cylindrical format (46 mm diameter) strikes a superior balance among energy density, fast-charging capability, and cost—making it a pivotal next-generation power battery technology. Second, large-diameter cylindrical cells impose higher demands on current collectors. The 46-series employs winding assembly, requiring exceptional uniformity in aluminum foil thickness, tensile strength, and surface cleanliness—precisely where high-end carbon-coated aluminum foil establishes its technical moat. Suppliers capable of delivering more uniform, stable carbon coatings will occupy core positions in the large-diameter cylindrical battery supply chain. Third, China’s industry response. CATL’s 46-series cylindrical batteries are already deployed in Tesla’s Model Y; EVE Energy and BAK Battery are also accelerating their 46-series development and production.

BMW Expands Battery Cell Supplier Network with Samsung SDI and LG Energy Solution

19 hours ago

BMW AG is adding Samsung SDI and LG Energy Solution as battery cell suppliers in Europe and the US to reduce dependency on Chinese manufacturers, supporting its sixth-generation high-voltage battery production.

bloomberg

2026-11-09

BMW Expands Battery Cell Supplier Network with Samsung SDI and LG Energy Solution

BMW Expands Battery Cell Supplier Network with Samsung SDI and LG Energy Solution

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