Explosive models drive the rapid growth of the 6s lithium battery industry

Today, CNHL will introduce the latest information of the 6s lithium battery industry in detail, focus on the current hot models, and lead you to explore how the hot models drive the rapid growth of the 6s lithium battery industry. Let’s find out together with me.

6s Lithium battery industry:

Explosive models are in high volume, with rapid growth in 21 years
Industry market performance: power equipment sector ranks first in growth in 21 years
The increase in 21 years ranks first, and the 21Q1 is expected to have a correction. Driven by the performance of the 6s lithium battery industry, the power equipment industry will rise by 47.86% in 2021, ranking first among the 31 first-tier industries in Shenwan.

However, due to the impact of the epidemic on the supply chain of new energy vehicles at the beginning of this year, as well as the rise in upstream raw materials The price squeezed the profitability of the company, and the market's expectations for the 6s lithium battery industry were adjusted back in Q1. The power equipment sector fell by 17.78% in the first quarter of this year, which was weak in all primary industries.

The proportion of power equipment holdings continued to rise, and the weight ranked first. According to iFind data, in the context of heavy industry performance, the proportion of power equipment sector targets in equity-oriented funds has increased rapidly. From the 22Q1 data, it has increased from 7.69% to 17.24% year-on-year, an increase of 9.55pct year-on-year; month-on-month It rose from 16.38% to 17.24%, a month-on-month increase of 0.86%. Power equipment, food and beverage, pharmaceutical biology and electronics sectors occupy a larger weight in partial stock funds.

6s lithium battery industry operating data:

A00-class models are fully penetrated, and lithium iron phosphate 6s lithium batteries surpass ternary 6s lithium batteries
A00-class models are fully penetrated, and C-class models have improved significantly. According to data from the China Association of Automobile Manufacturers, in 2021, the domestic sales of new energy vehicles will reach 3.507 million, with a global total of 6.642 million; in the first quarter of 2022, my country's new energy vehicle sales will reach 1.249 million, with a global total of

1.996 million. (Report source: Future Think Tank)
Power storage has multiple drives, and shipments have grown rapidly.
In terms of 6s lithium batteries, according to Gaogong lithium battery data, China's vehicle power 6s lithium battery shipments will be 226GWh in 2021, a year-on-year increase of 183%, accounting for 69% of China's 6s lithium battery market. In addition, the shipment of 6s lithium batteries for power tools was 11GWh, a year-on-year increase of 96%. On the one hand, the international power tool industry chain is gradually shifting to China, which promotes the accelerated transformation and layout of the domestic industry.

On the other hand, the demand for battery indicators and quantity of wireless power tools increases, which drives the increase of 6s lithium battery shipments. In addition, foreign companies such as LG and SDI are gradually shrinking the production line of consumer batteries to enter power batteries, reducing the supply of power tools, and domestic brands can replace them to seize the market gap. In the future, with the update and iteration of domestic cylindrical battery technology, the cost reduction is expected to drive the increase in overseas exports of 6s lithium batteries.

Double carbon stimulates the demand for energy storage, and the iron phosphate 6s lithium battery achieves the overtake. In terms of energy storage, driven by the policies of carbon neutrality and carbon peaking, as well as projects such as base station construction and new energy power generation construction, the annual shipment in 2021 will reach 48GWh, a year-on-year increase of 196%.

Due to the large-scale application of iron phosphate 6s lithium batteries in energy storage and the replacement of iron and lithium in low-end electric vehicles, iron and lithium have overtaken ternary in the production and installed capacity data of 6s lithium batteries in 2021, and in the first quarter of this year Continue to widen the gap. Judging from the data in March 2022, the current market pattern of iron-lithium ternary is 4/6 points.

6s Lithium battery industry sub-sector overview:

main material prices soar, battery factory profits under pressure
3.1 Power 6s Lithium Battery Manufacturers Segment
The price of upstream main materials is soaring, and the volume of 6s lithium battery manufacturers increases and decreases.

In 2021, affected by the sharp increase in the price of upstream raw materials, except for some manufacturers such as Ningde that occupy upstream raw material resources, the industry as a whole will experience a phenomenon of revenue growth and profit decline.

CATL achieved a revenue of 130.36 billion yuan in 2021, a year-on-year increase of 159.1%, and a net profit attributable to the parent of 15.93 billion yuan, a year-on-year increase of 185.3%. BYD, Guoxuan Hi-Tech, and Funeng Technology achieved growth in revenue but decreased net profit.

The gross profit has declined, and the top players of 6s lithium battery have obvious advantages. In terms of gross profit margin, the industry as a whole has declined since the beginning of this year, and upstream prices have remained at a high position. The leading 6s lithium battery companies CATL and BYD's inventories have risen significantly at the beginning of this year.

In terms of market structure, BYD's market share has increased by 4.11pct, accounting for 20.31% of the industry; the market share of 6s lithium battery leader CATL has slightly declined, but it still occupies half of my country's 6s lithium battery manufacturing industry, and its market share in Q1 in 2022 reached 49.75%.

The overall structure of the industry has basically remained stable. The leading companies are bound to important global customers, and the demand growth is highly certain. The upstream and downstream supply chains of 6s lithium batteries have strong bargaining power. The supply chain reserves and inventory are significantly better than other players in the industry. Respond to the risk of fluctuations in raw materials for 6s lithium batteries. (Report source: Future Think Tank)

3.2 6s Lithium Battery Upstream Raw Materials Sector
The price of lithium salt in lithium mines is soaring, and the profit growth rate of upstream companies far exceeds the revenue. According to Baichuan Yingfu data, the price of lithium carbonate has risen from 52,000 yuan/ton at the beginning of 2021 to 260,000 yuan/ton at the end of the year, and the price has risen fourfold during the year.

In 2022, it will break through the 30/40/500,000 yuan / ton mark successively from January to March, a surge of 8.6 times compared with the beginning of 21. Driven by the lithium mine market, the overall gross profit margin of the upstream raw material sector of 6s lithium batteries has risen sharply.

The leading enterprises Ganfeng Lithium Industry and Tianqi Lithium Industry achieved revenue of 11.16 billion yuan and 7.66 billion yuan respectively in 2021, a year-on-year increase of 102.1% , 136.6%; realized net profit of 5.23 billion yuan and 2.08 billion yuan, Ganfeng Lithium Industry’s growth rate reached 410.3%, and Tianqi Lithium Industry turned losses into profits.

In addition to the lithium ore market, upstream cobalt resources have also driven Huayou Cobalt to achieve revenue and profit growth. In 2021, it will achieve revenue of 35.32 billion yuan, a year-on-year increase of 66.7%; net profit will be 3.9 billion yuan, a year-on-year increase of 234.6%.
Due to the limited space, I will introduce it here today. More information will be continuously updated. The next issue will bring you the remaining content of the 6s lithium battery industry sub-section, see you in the next issue.