Cylindrical battery companies take advantage of “need” to rise

Summary:

GGII analysis believes that Chinese lithium battery companies are accelerating the penetration of the international power tool market. It is estimated that by 2025, China’s power tool shipments will reach 15GWh, with a compound annual growth rate of more than 22%.

Demand for cylindrical batteries has surged, and domestic battery companies have been in short supply of production lines, and have accelerated their capacity expansion, taking advantage of the trend to gain momentum.

On October 9, Azure Lithium Core released its first three quarters performance forecast. The first three quarters’ profit was 4.97-517 billion yuan, a year-on-year increase of 182.78%-194.15%, of which the third-quarter profit was 1.58-178 million yuan, a year-on-year increase of 51.8%. -71.01%. Its performance in the first three quarters is expected to nearly triple.

Azure Lithium Cell said that the company’s increase in performance is mainly due to the full production and sales of the lithium battery production line.

According to Gaogong’s understanding, driven by the substantial increase in sales in small power markets such as electric tools and smart home appliances at home and abroad, in addition to the blue lithium cells, the power tool batteries of enterprises such as Haisida Power Supply and Yiwei Lithium Energy are also in short supply. Shipments increased significantly year-on-year.

It can be seen that the domestic market for cylindrical batteries is increasingly demanding.

At the same time, as the global new energy vehicle market heats up, the cylindrical battery capacity of battery companies in Japan and South Korea such as Samsung, LG, and Panasonic has shifted to the field of automotive batteries. The supply chain of international power tool giants has shifted to China, and the supply of domestic battery companies has further increased. .

In the face of the ever-increasing market demand, domestic cylindrical battery companies have taken advantage of the momentum to accelerate their industrial layout, increase their own production capacity, and continue to make breakthroughs in cell rate, capacity, safety, cycle life, and stability.

Azure Lithium Core released a fixed increase plan to raise funds to expand production; Yiwei Lithium Energy changed its fund-raising use for production line construction and turned to cylindrical batteries; Haisida’s first phase of expansion project was completed and put into operation next year.

In addition, battery companies, including Penghui Energy, Changhong Sanjie, Hengdian Dongmag, and BAK Battery, are also expanding their cylindrical battery production capacity.

After the release of the new production capacity of the above-mentioned enterprises, the tight supply of the lithium battery market for power tools will be eased. GGII analysis believes that Chinese lithium battery companies are accelerating the penetration of the international power tool market. It is estimated that China’s power tool shipments will reach 15GWh by 2025, with a compound annual growth rate of over 22%.