Power tool battery capacity doubled increasing

In recent days, EVE Lithium Energy stated in a survey that the small lithium-ion battery and cylindrical market is making great strides. This year’s consumer battery business is expected to generate 7 billion yuan in revenue and 20 billion yuan in future plans.

Its consumer battery business revenue in 2020 is 4.098 billion yuan, which means that in 2021, EVE’s lithium energy consumer battery business is expected to grow by 70%, and future planned revenue will increase by 5 times.

Among them, the cylindrical li-ion battery plans to have a revenue of 10 billion yuan in the future. EVE Lithium Energy revealed that the top five customers in the world currently have supply, and one customer sold 150 million units this year.

As of the end of 2020, the production capacity of EVE lithium cylindrical li-ion battery is 3.5GWh. EVE Lithium Energy stated that in order to comply with the trend of rapid growth in demand from downstream industries such as power tools, relieve market supply pressure from insufficient production capacity, and expand market share, the company has carried out capacity expansions in Jingmen and Huizhou factories respectively.

For example, EVE Lithium Energy has changed its fund-raising use for the second phase of Jingmen Cylinder Project, and the production capacity is expected to reach 800 million in 2022.

In addition to EVE Lithium Energy, domestic lithium battery companies are also accelerating the expansion of the production of cylindrical batteries for power tools, including the blue lithium core investment of 5 billion to expand the production of 4 billion Ah cylindrical lithium batteries, the production capacity will reach 700 million by the end of 2021; Changhong Energy invested 19.58 100 million yuan will be used for the first and second phases of lithium battery projects in Mianyang; Haisida will increase its production capacity of 2GWh cylindrical batteries.

GGII data shows that in 2020, domestic power tool lithium battery shipments will be 5.6GWh, a year-on-year increase of 124%. Shipments are mainly concentrated in several cylindrical lithium battery companies such as EVE Lithium Energy, Tianpeng Power, and Haistar.

Behind the high growth, on the one hand, under the epidemic, the demand for power tools in Europe and the United States as the main market is strong, which has driven the global power tool manufacturers to fill orders. On the other hand, it is the strategic exit of Japanese and Korean companies such as Samsung SDI, LG Chem, and Panasonic in this field, which has given domestic lithium battery companies accumulated over the years to “make up for” opportunities.

It is worth mentioning that leading domestic companies continue to increase their investment in technology research and development, and have continuously made breakthroughs in cell rate, capacity, safety, cycle life, and stability, and their products have successively obtained technical certification and recognition from international customers.

More and more Chinese lithium battery companies are importing the supply chain of global power tool companies:

EVE Lithium Energy and Haistar have already supplied TTI. BAK battery began to supply TTI in batches for multiple product lines in May this year; Haistar has obtained product technology certification from Bosch and Black & Decker; Penghui Energy has passed TTI Technical review; Lishen battery supply to Black & Decker, etc.

GGII analysis believes that with the accelerated penetration of Chinese lithium battery companies in 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%.