Lithium battery industry chain - battery end "cost reduction" in progress

As China's three major industries of new energy vehicles, batteries, and charging stations enter a period of pain, as one of the core components that accounts for 40% of the manufacturing cost of new energy vehicles, the demand for cost reduction of power batteries in downstream markets is intensifying, which has become one of the driving forces for continuous innovation and optimization of battery structure and form.

Among them, new batteries represented by 46 series large cylindrical and long thin blade batteries are gradually gaining momentum and constructing a new market pattern.

In terms of 46 series large cylindrical, due to structural innovation and material systems that can achieve more efficient manufacturing, higher performance, and lower costs to meet the needs of electrification, 46 series large cylindrical have become one of the important technological paths in the industry. It is reported that China's top batteries, such as CATL, Yiwei Lithium Energy, Zhongchuangxinhang, Yuanjing Power, and Lanjun New Energy, have made substantial technological progress, and the mass production process is constantly advancing.

In addition to BYD's innovative launch of blade batteries, the "short blade+flying stack" battery independently developed by Honeycomb Energy has achieved product advantages of high energy density, high safety, and high cost-effectiveness, as well as manufacturing advantages of high efficiency, high quality, and low cost. It has also won multiple orders at home and abroad, continuously expanding its market share.

It is worth noting that under the influence of mileage anxiety and energy replenishment anxiety in the end market, fast charging technology has become one of the important technologies for power batteries. Driven by the demand for cost reduction, phosphoric acid batteries have entered the fast charging market. In August, CATL released the world's first lithium iron phosphate 4C overcharged battery - Shenxing overcharged battery, and plans to mass produce it by the end of this year and launch it in the first quarter of next year. Currently, it has announced the signing of loading agreements with automotive companies such as Avita, Chery, BAIC Jihu, and Nezha.

In addition to relying on their own process innovation and improving manufacturing yield, improving supply chain management is also an important measure to reduce costs and improve efficiency for battery companies.

On the one hand, battery companies are continuously deepening their strategic cooperation with upstream material companies and downstream automotive companies to ensure stable material supply and orderly production capacity consumption in an environment of fluctuating raw material prices, thereby reducing their own risks; On the other hand, battery companies will also invest to expand upstream and adopt a deep integration strategy. For example, CATL, Sunwoda, and Gotion Hi-Tech have successively won lithium mining rights at home and abroad, while CATL and BYD have invested in Hunan Yuneng, a leading enterprise in lithium iron phosphate.