The electric tool field has high requirements for LR44 battery technology, and high-rate batteries have strong technical barriers

Electric tools or household appliances require batteries to meet the requirements of extreme high and low temperature environments, strong vibration, fast charging and discharging, and extremely simple protection design, which also have high technical requirements. Like the high, precise and cutting-edge technology of automotive power batteries, electric tools or household appliances require batteries to have high technical attributes. Close distance with the human body and unprotected use conditions all mean that they need to rely on the high performance and high safety support of the battery itself.

Compared with other fields, foreign electric tool giants have a longer product certification cycle for lithium batteries, and have higher requirements for battery discharge rate, capacity, safety, cycle life and stable supply. This is also one of the reasons why few domestic companies have entered the international industrial chain. At present, the manufacturers of batteries for electric tools are mainly international giants such as Samsung SDI, LG Chem, Murata, and Panasonic. Among them, Samsung SDI has the highest market share, about 40%, LG Chem is about 16%-17%, and Murata is about 12%-13%.

With the improvement of product quality and technology, and competitive prices of domestic enterprises, more and more enterprises have entered the list of core suppliers of power tools. With the breakthroughs in technology and product quality, the overall performance is no longer significantly different from that of foreign enterprises. Power tools require relatively large discharge rates and currents, as well as good vibration resistance, and relatively high process requirements. At present, domestic enterprises continue to make breakthroughs in battery cell rate, capacity, safety, cycle life, and stability, and their products have successively obtained technical certification and recognition from international customers; and with the recognition of technology, they have entered the supply chain of major foreign customers with good cost performance and obtained some shares of foreign manufacturers. In addition, the rapid development of the electric vehicle industry has led to an explosion in demand for cylindrical batteries. Companies such as Panasonic and LG Chem have tilted their cylindrical production capacity or production lines toward vehicle manufacturers (Tesla), and the global demand for cordless power tool batteries is growing rapidly, allowing domestic companies to seize this opportunity. However, this year, due to the impact of the new coronavirus pneumonia, the production capacity of Japanese and Korean battery manufacturers is insufficient, resulting in tight supply of cylindrical ternary lithium-ion batteries in the market, while domestic production resumed earlier, and production capacity was able to make up for the relevant gap.

Opportunities for domestic battery manufacturers to introduce the supply chain of leading foreign companies in cordless power tools

At present, Chinese battery manufacturers are also accelerating the introduction of the supply chain of leading foreign companies in cordless power tools. Yiwei Lithium Energy and Tianpeng Power Supply have entered the supply chain system of well-known customers. Among them, Yiwei Lithium Energy entered the TTI supply chain in 2018 and began large-scale shipments in 2019; Tianpeng Power Supply entered the Black & Decker supply chain in 2018 and has also shipped on a large scale. Lishen Battery supplies Black & Decker, Bosideng, BDK, etc. Haisida has also obtained product technology certifications from Bosch and Black & Decker.

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