Kailian Capital: Power Battery Monthly Report for May 2022

Background

Under the " dual carbon " tone, the sales volume of new energy vehicles in 2021 rose against the trend against the backdrop of a downward trend in automobile production and sales, ushering in explosive growth. As the core link of new energy vehicles, power batteries affect the development of automobile electrification in terms of performance, production capacity and cost.

In order to track the trend of passenger car electrification in a timely, rapid and effective manner, Kailian Industrial Research Institute pays long-term attention to changes in the entire power battery industry chain from multiple dimensions, including fluctuations in upstream raw material costs, R&D and production of four key materials in the midstream, and production and installed capacity data of downstream power battery manufacturers, and continuously releases monthly and annual tracking reports on power batteries.

1. Domestic power battery production and installed capacity data

1.1 In May , domestic power battery production and installation data increased by more than 20% month-on-month , showing a preliminary recovery

In May , domestic power battery production was 35.6GWh , a year-on-year increase of 158.2% and a month-on-month increase of 22.8% , basically returning to the high point in March this year .

The domestic installed capacity data in May was 18.6GWh , a year-on-year increase of 90.6% and a month - on- month increase of 39.9% . With the recovery of new energy vehicle production in May, there has been a significant recovery compared to the low point in April, but it is still a long way from the high point in December last year.

In May , domestic production of new energy passenger vehicles reached 432,000 units, up 46.8% from the bottom in April . The rebound in new energy passenger vehicles led to a high month-on-month growth in power battery installations.

1.2 The installed capacity of ternary batteries has increased significantly from 33% to 44.9%

In May , the installed capacity of lithium iron phosphate batteries was 10.23GWh , accounting for 55.1% of the total installed capacity of power batteries ; the installed capacity of ternary batteries was 8.3GWh , accounting for 44.9% .

The month-on-month doubling of installed capacity of ternary batteries in May brought about a significant increase in the overall share, with the installed capacity of ternary batteries increasing from 33% in April to 44.9 % .

The increase in installed capacity of ternary batteries mainly came from the recovery of installed capacity of ternary batteries by CATL and Sinotruk. CATL recovered from 2.03GWh in April to 4.29GWh in May , and Sinotruk recovered from 0.67GWh in April to 1.37GWh in May .

Except for BYD, whose performance remained stable in April but slightly declined in May, the growth rate of manufacturers in May was generally increased. The five companies with higher month-on-month growth rates were CATL, Sinotruk, EVE Energy, Farasis Energy, and JETWAY. From the perspective of the continuous growth in installed capacity, the installed capacity of Xinwoda, EVE Energy, and Farasis Energy has been growing steadily in the past 12 months.

2.2 CATL's installed capacity of lithium iron phosphate is 4.22GWh , surpassing BYD

In April , BYD's installed capacity of lithium iron phosphate batteries surpassed CATL, but in May CATL overtook it and regained its installed capacity advantage in both technical routes.

Except for CATL, there are currently very few manufacturers that can achieve simultaneous and stable installation of two technical routes. BYD, Guoxuan High-tech, and Yiwei Lithium Energy have advantages in lithium iron phosphate, while Zhongxin Aviation, Xinwangda, and Farasis Energy have advantages in ternary batteries.

The prices of cobalt and nickel have continued their downward trend since April, with the price of battery-grade cobalt sulfate having dropped to 82,000 yuan/ton and the price of battery-grade nickel sulfate having dropped to 42,000 yuan/ton.

The price of lithium hexafluorophosphate, an important raw material for electrolyte, continued to plummet. As of mid- June , the price of lithium hexafluorophosphate had dropped to 245,000 yuan / ton, a decrease of nearly 25% from the mid- May price and nearly 60% from 600,000 yuan / ton at the beginning of the year .

The lithium hexafluorophosphate project has a long expansion cycle and is not resistant to storage. After the production capacity shortage in 20-21 , the price skyrocketed. However, with the release of production capacity and the increase in inventory pressure on manufacturers, the downward trend in the price of lithium hexafluorophosphate since March this year has been difficult to stabilize.

The prices of other links, such as negative electrode artificial graphite and current collector copper foil, remained basically stable in May and June and will not be elaborated here.

4. Primary and secondary capital market operation data

4.1 The power battery industry chain index continued to rise , basically recovering the decline since February

The minor metal index of upstream raw materials for power batteries ( 833024 ), the lithium battery chemical index of midstream intermediate products ( CI005420 ) and the power battery index of downstream production ( 931664 ) have been on a downward trend since November last year, bottomed out in March and April , and have now rebounded by about 50% .

4.2 10 power battery-related financings occurred from May to June , and solid-state batteries attracted attention

In the equity investment market, a total of 10 companies related to the power battery industry chain received financing, including 4 battery manufacturers, 4 battery material suppliers, 1 battery component, and 1 waste battery recycling manufacturer.

Among the four battery manufacturers, solid-state lithium batteries represented by Tailan New Energy and ProLogium Technology are active. Tailan New Energy's technology route is oxide solid-state batteries, which has the possibility of being the first to mass-produce semi-solid power lithium batteries; ProLogium Technology is solid-state lithium ceramic battery technology, and its current goal is also to be able to mass-produce automotive-grade solid-state lithium batteries.

Among the five battery material manufacturers, Seiko Electronics' main business is the research and development and manufacturing of lithium iron phosphate positive electrode materials, Haodian Technology mainly develops battery adhesives, conductive dispersions and functional coatings and other materials, and Jinli Co., Ltd. mainly develops battery separator technology.

Kailian Industrial Research Institute has been paying close attention to the development of new energy vehicles and related industrial chains for a long time, expanding, updating and iterating the analysis angle and scope. It will continue to output monthly tracking reports on new energy vehicles, power batteries and key automotive intelligent components on a monthly basis. We welcome and look forward to discussions with colleagues in the industry, research and investment communities.