Ten major Power battery trends in China and even the world in 2024:
xiaowei attempts to summarize the ten major trends of the power battery industry in 2024 from multiple dimensions
10 Power battery trends:
Power battery Trends 1: Overcapacity drives battery prices down: After two years of price increases in China, battery prices finally turned downward
1. Excess capacity of raw materials
In November 2022, the price of lithium carbonate reached a peak of 600,000/ton, and then continued to fall. By October 2023, the spot price of lithium carbonate had dropped to 150,000/ton. In less than a year, the price was very different.2. Battery overcapacity
Data from the China Automotive Power Battery Industry Alliance shows that from January to August this year, power battery production was 419.7GWh, while the installed capacity was 219.2GWh, with the loading rate being only 52%. (On par with the auto industry’s capacity utilization.)
Power battery trends 2: Cost pressure forces further standardization of battery cells
Battery factory:
1. Optimize production line
2. Reduce manufacturing costs
3. Battery recycling
car factory:
1. Improve battery adaptation and procurement flexibility
2. All models are equipped with the same battery cells
Power battery trends 3: Battery life and cost pressure drive the popularity of CTC (Cell to Pack)/CTB (Cell to Chassis/Cell to Body)
Power battery trends 4: Lithium iron manganese phosphate and other improved solutions replace traditional LFP
Trend 5: Anxiety about energy replenishment drives the increase in the use of fast-charging batteries
Trend 6: Models equipped with semi-solid batteries are launched in batches
Trend 7: Self-developed batteries were replaced by investment holdings and battery cooperation
For OEM, it is of course best if they can develop their own batteries, which not only improves supply chain control but also increases product profit margins.
OEM have reached strategic battery cooperation, and OEM and battery manufacturers have invested in shares. Several parties can share technology and battery cells to reduce costs, and each can get what they need, which is beneficial to both OEM and battery vehicles.
Trend 8: The expansion of power swap stations has reached a bottleneck
Trend 9: Carbon footprint becomes a new hot topic
The EU Power Battery Act officially came into effect in August, which stipulates clear requirements for the carbon footprint of batteries, battery recycling, and the use of recycled materials.
Carbon footprint is the sum of greenhouse gas emissions and greenhouse gas removals in a product system.
Europe is the most important overseas market for China’s electric vehicles and an important overseas destination for Chinese battery companies. This bill will naturally increase the Chinese battery industry’s attention to its carbon footprint. This will increase export thresholds and compliance costs.
Participating in industry conferences, I learned that the Ministry of Ecology and Environment has always been concerned about the carbon emissions of the automobile industry, and the automobile industry carbon market is being implemented as planned. China Automotive Industry Center also took the lead in launching the “Power Battery Sustainable Development Action Plan” to study the feasibility of the Chinese version of the battery passport.
Trend 10: The boundaries between power and energy batteries are gradually blurring.
Power batteries and energy batteries are the two major genres of power batteries.
The power type is characterized by high rate and fast charge and discharge speed, and is suitable for HEV (Hybrid Electric vehicle), PHEV (Plug-in Hybrid Electric vehicle); the energy type is characterized by high energy density, suitable for BEV (Battery Electric vehicle) and Long-range EREV (Extended-Range Electric Vehicles).
In the early days of industry development, PHEV batteries had small batteries. In order to drive large motors, they needed higher rate performance, that is, power-type batteries. BEV pursues long battery life, high battery power, low magnification requirements to drive the motor, and energy density is relatively more important, that is, energy-type batteries.
This is xiaowei’s opinion on the development trend of new energy in 2024. You are welcome to have friendly exchanges.
The article involves a lot of content, and some parts are not introduced in detail. Xiaowei will elaborate on each point separately in the future.
