Power batteries serve as the primary power source for new energy vehicles. Power batteries demand higher technical and sustainability standards than conventional batteries. Currently, domestic power battery manufacturers are proliferating, presenting a positive and diverse development trend. Experts in liquid cooled radiators for power battery packs believe that the power battery pack industry will shift from widespread proliferation to polarization. In the short term, the polarization of power battery companies is significant, and the pattern of leading companies pairing with others of similar stature is essentially established.
Observing the evolution of domestic power batteries, the swift expansion of battery production capacity has resulted in a persistent surplus of lithium batteries in China. Qualitatively, there is an abundance of subpar production capabilities alongside a continued shortage of high-quality ones. The power battery industry is expected to see further concentration, with a shift towards higher-quality and more advanced enterprises. Manufacturers supporting popular vehicle models primarily belong to top-tier power battery leaders like CATL, BYD, Guoxuan, Lishen, and Funeng.
Looking ahead to the future market, structural surplus will be maintained for an extended period, leading enterprises' economies of scale and technological breakthroughs will steadily reduce costs, and profit margins will show favorable performance. However, mid to low end battery companies will face significant pressure to reshuffle. How to survive in competition has become a question that power battery companies must consider.
Process technology is essential for power batteries, with the preparation stages moving towards greater scale and intelligence. This enhances product consistency and yield, representing a key aspect of quality improvement. Advancements in the mass production and intelligent manufacturing transformations of power batteries also serve as an indicator of breakthroughs in quality.
Power battery companies with advanced technological processes are sought after by major domestic and international automakers, particularly those leading enterprises that are nearly ready for large-scale production. Large-scale intelligent production equipment enhances product quality by leveraging digital methods, incorporating big data analysis, and applying artificial intelligence principles, thereby facilitating production capacity statistics, basic diagnostics, and traceability of products, and enabling comprehensive monitoring of the battery production process. This effectively addresses issues like inconsistent battery performance and low yield rates. Experts in liquid cooling systems for power battery packs maintain that this demands substantial investment in technological equipment upgrades and ongoing process improvements, thereby significantly challenging the capabilities of power battery companies.
Globally, the production of power batteries is primarily concentrated in China, Japan, and South Korea, with Japan and South Korea leading in technology for now. Chinese companies are expected to surpass them in the future.Industry leaders include Samsung and LG Chem in South Korea, Panasonic, ASEC, and SONY in Japan, and BYD and CATL in China.From 2016 to 2017, domestic battery manufacturers expanded across all product lines. By 2020, the domestic production capacity will be dominated by lithium-ion batteries, with the top five power battery companies commanding over 80% of the market share.
Although Japanese and Korean power battery companies currently outpace China in technology, Chinese companies are rapidly catching up and demonstrating cost advantages. Currently, all four major raw materials are self-sufficient, and the more challenging cathode and separator materials are being exported. Key lithium battery equipment has been indigenously produced, and advanced intelligent systems are being exported.CATLhas integrated into the supply chains of top automakers like BMW. It is anticipated that China will see the emergence of 2-3 power battery brands capturing global market share. Experts in liquid cooling systems for power battery packs believe that Chinese companies' cost advantage will become more pronounced, especially in the high-end power battery sector.
