Recently, multiple institutions released research reports predicting trends in the lithium battery market.
A research report by Central China Securities pointed out that by 2025, lithium battery demand is expected to continue growing, with attention on demand in the power and energy storage sectors. Considering capacity release and downstream demand growth rates, industry chain prices are expected to remain volatile overall. Industry profitability is generally not optimistic, and differentiation is expected to persist.
A research report by Dongwu Securities stated that lithium battery industry demand exceeded expectations, with better-than-expected demand in the off-season during November-December. Demand for 2025 has been revised upward to over 30% growth. Current valuations are at profitability bottoms, with leading companies standing out in technological innovation and cost advantages, leading to an early recovery in profitability. A supply-demand reversal is imminent.
A research report by Haitong International stated that in the future, as raw material costs in the lithium battery industry chain continue to decline, coupled with policy support and increasing end-use demand, NEV sales are expected to grow steadily, driving a gradual increase in demand for the lithium battery industry chain.
Changes in the industry and market are often first perceived by top-tier enterprises. Conversely, the movements of top-tier enterprises also reflect changes in industry trends to some extent.
According to data released by the China Automotive Power Battery Industry Innovation Alliance, from January to November, the top 15 domestic power battery enterprises in terms of battery installations were: CATL, BYD, CALB, Gotion High-tech, EVE, SVOLT Energy Technology, Sunwoda, REPT, Zenergy, LG Energy Solution, Jidian New Energy, Farasis Energy, DFD, Inpai Battery, and Yaoning New Energy.
Battery Network observed that as year-end approaches, many of the top 15 power battery companies in terms of battery installations have been actively announcing new project developments.
CATL
On December 10, after the daytime session, CATL announced that it plans to jointly establish a joint venture with Stellantis in Spain, with each party holding a 50% stake. The joint venture will build a battery factory in Zaragoza, Aragon, Spain, with a total investment of 4.038 billion euros. The factory is expected to have an annual capacity of 50 GWh, with Stellantis as the target customer for its products.
On December 18, CATL held the Chocolate Battery Swapping Ecosystem Conference in Xiamen, Fujian. At the conference, CATL unveiled a new generation of battery swapping solutions and formed the Chocolate Alliance with over 100 corporate partners to jointly promote a new battery swapping ecosystem. CATL also announced the leasing price for the "LFP version" of its battery swapping batteries and signed subscription services for 107,500 batteries with 30 companies.
BYD
On December 2, at the strategic cooperation signing and release event between Tailg Technology Co., Ltd. and Shenzhen BYD Lithium Battery Co., Ltd. held in Wuxi, Jiangsu, the two parties officially announced a deep collaboration in the NEV battery sector for two- and three-wheelers.
On December 19, according to news from the media center of the Shenzhen-Shantou Special Cooperation Zone, 18 major projects were recently launched in the zone, with a total investment of 14.275 billion yuan.
Among the projects, the third phase of the BYD Automotive Industrial Park in the Shenzhen-Shantou Special Cooperation Zone was included. The project covers an area of approximately 1.3 million m² and primarily involves the construction of battery PACK lines, core component factories for NEVs, and blade battery assembly.
Additionally, the Weichai FinDreams New Energy Power Industrial Park project, jointly invested and constructed by Weichai Power under Shandong Heavy Industry and BYD, recently reported new progress. Phase I of the project is expected to be completed and put into operation by the end of December 2024.
Gotion High-tech
On the evening of December 12, Gotion High-tech officially announced the establishment of two overseas lithium battery bases, with a total investment not exceeding 2.514 billion euros (approximately 19.1 billion yuan).
Specifically, Gotion High-tech plans to invest in a NEV battery production site in Slovakia, with a total investment not exceeding 1.234 billion euros. The project will be implemented by its subsidiary GIB EnergyX Slovakia s.r.o. ("GIB"), funded through self-raised and external funds, and constructed in phases over no more than three years. The company also plans to invest in a NEV battery production site in Morocco, with a total investment not exceeding 1.28 billion euros. The project will be implemented by its subsidiary Gotion Power Morocco S.A. ("Morocco Gotion"), funded through self-raised and external funds, and constructed in phases over no more than five years.
EVE
On December 10, the first phase of EVE's 60 GWh super factory was completed and put into operation in the Jingmen New Energy and New Materials Industrial Park.
On December 14, the equipment installation ceremony for EVE's Malaysia factory was held. The factory is expected to begin operation in Q1 next year, becoming EVE's first overseas factory to achieve mass production and delivery. The Malaysia factory, also known as EVE's 53rd factory, primarily produces cylindrical batteries for power tools and two-wheelers, with an annual production capacity of 680 million cylindrical batteries.
Sunwoda
On December 18, Sunwoda announced that its subsidiary Sunwoda Power held the "Commercial Vehicle Supercharging Ecosystem Power Battery Launch and Project Quality Pledge Conference" at its Huizhou site. Wang Huawen, Vice President of Sunwoda Power, stated at the conference that with the advent of the new energy wave, the electrification of commercial vehicles, especially heavy trucks, has become an inevitable trend.
REPT
On December 16, the inauguration ceremony of the REPT Yangtze River Delta Research Institute was held in Jiaxing, Zhejiang. As an internal lithium battery design and R&D unit of REPT, the institute will focus on the R&D of battery cells and system integration products related to power and energy storage, aiming to launch high-performance products through technological innovation. Along with the institute's inauguration, the REPT Yangtze River Delta Research Institute Special Development Fund was established, with an initial scale of 100 million yuan, primarily for scientific research innovation, talent cultivation, and achievement transformation, deepening government-enterprise collaboration in science and industry.
Additionally, on December 2, REPT announced that it recently signed a strategic cooperation agreement with Leyitong Technology Co., Ltd. According to the agreement, REPT plans to deliver approximately 5 GWh of lithium battery cells to Leyitong over the next three years. The two parties agreed to leverage their respective expertise, market positions, and resource potentials to collaborate deeply in the lithium battery sector, achieving mutual benefits, information sharing, and win-win cooperation. During the signing ceremony, the two parties also discussed establishing an overseas battery system factory.
LG Energy Solution
On December 3, South Korean battery company LG Energy Solution announced that it had signed a "Joint Development Agreement for Prismatic Batteries and Core Materials" with General Motors, deepening their 14-year partnership in battery technology. The newly developed prismatic batteries will be used in GM's next-generation EVs to further enhance efficiency and reduce costs.
Additionally, GM announced that it had reached a non-binding agreement with LG Energy Solution to sell its stake in the nearly completed Ultium Cells battery plant in Lansing, Michigan, to LG Energy Solution. The transaction is expected to be completed in Q1 2025.
DFD
On December 5, the DFD Yihua Central China Fluorine-Silicon Industrial Park project, with a total investment of 9.6 billion yuan, commenced construction in the Baiyang Industrial Park of Yichang High-tech Zone, Hubei.
It is reported that Phase I of the project primarily plans to include 60,000 mt of anhydrous hydrogen fluoride, 20,000 mt of electronic-grade hydrofluoric acid, 30,000 mt of anhydrous aluminum fluoride, 20,000 mt of LiPF6, and high-purity SiF₄. Among these, electronic-grade hydrofluoric acid is widely used in the semiconductor and chip industries, while LiPF6 is a key material for NEV batteries, with promising market prospects, laying the foundation for further industry chain extension.
