Reprinted-\"2020 China Lithium Battery Cathode Materials Industry Research Report\"

Foreword

According to the survey data of the Institute of Industrial, Industrial and Research Lithium Battery Research (GGII), China's lithium battery cathode material shipments in 2019 were 404,000 tons, a year-on-year increase of 32.5%. Among them, the shipment of ternary cathode materials was 192,000 tons, an increase of 40.7% year-on-year; the shipment of lithium iron phosphate materials was 88,000 tons, an increase of 29.3% year-on-year; the shipment of lithium cobaltate materials was 66,200 tons; The cargo volume is 57,000 tons.

In 2019, the power battery market shipments increased by less than 10%, and the cathode material market shipments increased by more than 20%. The main reasons for the high market growth are: 1) power battery and energy storage (including communication energy storage and Overseas grid-side energy storage) and some small power (such as forklifts, bicycles) fields have led to growth in shipments of phosphoric acid materials; 2) Overseas lithium cobalt oxide material companies continue to reduce production, and some orders have been transferred to China, which has led to an increase in domestic lithium cobalt oxide material output 3) The increase in the shipment of ternary materials is mainly driven by the growth of domestic power battery terminals and small power (electric tools, bicycles) and other fields. In addition, the increase in shipments of major foreign power battery companies has led to an increase in the export of domestic ternary materials. 4) The increase in shipments of lithium manganate materials was mainly driven by small power and low-capacity digital batteries.

In terms of the proportion of cathode material shipments, the ternary cathode material market accounted for 47.6% in 2019, an increase of 2.7 percentage points compared with 2018, and the market share was the largest. The main reasons for the increase in the market share of ternary positive electrode materials are: 1) the growth of power battery shipments in 2019 increased by 9.4% year-on-year, and the increase in power battery market shipments will directly increase the demand for ternary positive electrode materials; 2) new in 2019 The energy vehicle subsidy policy has increased the energy density and range threshold requirements, and put forward higher requirements for the energy density of power batteries. Domestic mainstream power battery companies have accelerated the production and application of ternary power batteries. For example, BYD's newly listed passenger cars use NCM622 single Crystal ternary materials, Ningde Times to speed up the installation of NCM811 series batteries. The market has accelerated its shipments in the field of medium and high nickel ternary cathode materials, driving the market shipments of ternary cathode materials; 3) Small power, electric tools and other fields are gradually leaning towards high energy density, high rate type or high fast charge type. Batteries drive the ternary cathode material market shipments.

Data source: Lithium Power Research InstituteGGII),2020年2月

From the perspective of the competition pattern of the positive electrode material market, the TOP10 positive electrode material company market share in 2019 is 56%, which is an increase of 3 percentage points compared with 2018, and the market leader effect is not as significant as the other three key materials. Xiamen Tungsten Industry benefits from the dual growth of lithium cobaltate and ternary materials. In 2019, its cathode material shipments increased by more than 50% year-on-year. Tianjin Bamo benefited from the release of capacity and increased demand from end customers. The growth rate of cargo volume is obvious, and the total shipping market rank rises to the second place. Long-term companies such as Lico, Rongbai Lithium Battery and Zhenhua New Materials benefit from the increase in demand for ternary materials in the power battery market. Rise in varying degrees.

From the perspective of price trends, the overall price of cathode materials in 2019 is trending downward. The main reasons are: 1) Upstream raw materials such as lithium carbonate and lithium hydroxide have not been driven by the release of production capacity and terminal demand, resulting in the continued decline in lithium salt prices, and As a result, the market prices of lithium manganate and lithium iron phosphate cathode materials have fallen; 2) Due to the pressure of terminal cost reduction to be transmitted upstream, the cost pressure of the battery industry is passed on to the upstream, which has caused upstream cathode material companies to reduce their sales.

Data source: Institute of Advanced Industrial Products Research Lithium-Ion (GGII)), 2020Year 2月

With the implementation of the transformation strategy of international vehicle companies, the threshold for signing production capacity has increased, and capital pressure has been transmitted to power battery manufacturers and material manufacturers. In the next few years, cathode material manufacturers will still face pressures such as rapid capacity expansion, low capital turnover, and long account periods. GGII predicts that China's cathode material market will have the following development characteristics in 2020: 1) the market concentration of segmented material companies will further increase, and companies with product quality advantages and capacity scale effects will gradually focus on head companies; 2) heads These companies further strengthened the supply chain layout of mainstream international battery customers, and the companies that entered the core supply chains of CATL, LG, BYD, Panasonic and other companies gradually concentrated on a few powerful companies; 3) The cost advantage of lithium iron phosphate batteries will continue Driven by the battery and energy storage battery market and the acceleration of the application of new technologies and processes, the shipment of lithium iron phosphate materials will account for more than 25%; 4) Ternary cathode materials will still be the largest market for cathode materials. With the increase in the scale of power battery and small power battery markets, the ternary material market will account for more than 50% of shipments; 5) core cathode material companies will further increase their layout in technology, patents, customer resources, management, etc. And optimize reforms to enhance their core competitiveness; 6) head companies will further strengthen their upstream and downstream industries Cooperation layout, to ensure its own supply of raw materials and product sales.

In addition, the industrialization of moduleless battery technology will have a huge impact on the lithium iron phosphate material market. Previously, it was limited by the low energy density. The application market of lithium iron phosphate material has been limited to the field of commercial vehicles and a small number of passenger vehicles. With the industry's continuous improvement of the performance of lithium iron phosphate materials and the application of moduleless technology such as CTP, the application fields of lithium iron phosphate materials will gradually expand in the future. Mass production of BYD series vehicles is imminent in 2020, and the market share of lithium iron phosphate materials in the passenger car market is expected to increase significantly.

The Institute of Industrial, Industrial and Research Lithium Battery Research (GGII) has collected a large amount of first-hand information through field surveys of major cathode material companies and supporting companies in the country, and face-to-face interviews with leaders in the cathode material industry. Report on the Investigation and Analysis of the Cathode Materials Industry. This report conducts a detailed study and analysis of the development characteristics, main products, output value, and future market conditions of China's cathode materials industry in 2019, and forecasts the development trend of cathode materials in the next three years. GGII hopes to provide accurate and valuable reports for investors, industry insiders, securities companies, and those who want to understand China's cathode materials industry through actual investigations.