button battery cr2032 production is in excess, and the energy storage market is rising strongly

For battery companies, especially those focusing on lithium iron phosphate, the rise of energy storage has opened up channels for capacity reduction and expanded new markets. It can be said that it kills two birds with one stone, and the "money" prospects are bright.

However, based on the current situation, there are still many technical bottlenecks in lithium iron phosphate batteries, which urgently need to be improved and broken through by relevant power battery companies.

Under the encouragement and guidance of national policies, domestic new energy vehicles have achieved rapid development, from 22,000 vehicles in 2013 to 818,000 vehicles installed in 2017.

It is preliminarily estimated that the installation volume of new energy vehicles will exceed 1 million in 2018.

With the steady growth of new energy vehicle sales, the related industrial chain has become more perfect, and the power battery process and performance have also achieved steady improvement.

Structural overcapacity has appeared in power batteries

Especially for lithium iron phosphate batteries, whose market is gradually squeezed under the "suppression" of ternary batteries, energy storage is regarded as the most important potential market in the later stage.

It is reported that the future energy storage market will be larger than the electric vehicle market, so it is still unclear who will win or lose between ternary batteries and lithium iron phosphate batteries.

The strong rise of the energy storage market

my country's energy storage industry started in the early 21st century. The first 10 years were the technology research and development period, mainly for related technical units to carry out basic research and technology verification demonstration.

It was not until October 2017 that multiple ministries and commissions jointly issued the "Guiding Opinions on Promoting the Development of Energy Storage Technology and Industry", which became the first domestic guiding opinions on the development of the energy storage industry. This also means that the energy storage industry has begun to get rid of the "window period" of top-level design and move towards a new stage of "comprehensive planning".

The strong rise of the domestic energy storage market

From the specific performance of the energy storage market this year, BYD is indeed very eye-catching.

In June, BYD was once again awarded the 18MW container energy storage project in the UK. This is another large energy storage order this year after BYD successively won the 43MW and 50MW energy storage projects in the UK market.

In addition, BYD has signed energy storage projects with many countries including the United States, Australia, Italy, and South Africa.

Since its establishment in 1995, BYD has been committed to the research of battery and energy storage technology. So far, it has established a complete closed loop of new energy ecology, and the later operation and maintenance are economical and convenient, and it can provide one-stop solutions and services.

Influenced by BYD, domestic related battery companies have increased their investment in energy storage.

On June 18 this year, the large-scale lithium battery energy storage project jointly invested and constructed by Fujian Provincial Investment Group and CATL was signed, and the project was officially landed in Jinjiang City, Fujian Province.

The project will invest in the construction of a large-scale lithium battery energy storage project in Jinjiang, with a total planned investment of 2.4 billion yuan, and plans to build a 1,600MWh lithium battery energy storage equipment in three phases.

Huang Shilin publicly stated that CATL will be based on two industries in the future, one is power batteries, and the other is the development of energy storage batteries.

The overall development goal of CATL is to "be the safest lithium battery in the world", which is the bottom line of CATL. Therefore, CATL ensures the safety of its lithium batteries from four aspects: design safety, product safety, production safety, and after-sales safety assurance.

Cai Liquan, deputy general manager of Far East Foster Marketing Center, said that the company has accumulated mature experience in the field of home energy storage.

The strong rise of the energy storage industry has also opened up a new battlefield for related power battery companies, and the safer lithium iron phosphate batteries have frequently appeared in the disclosed energy storage projects.

It is understood that previously, including BYD's UK energy storage project, CATL's Jinjiang energy storage project, Zhongtian Energy Storage Zhenjiang energy storage project, Tianjin Lishen Huanglong energy storage project, etc., all revealed that they used safer and more cost-effective lithium iron phosphate batteries.

Switching to energy storage also depends on strength

From the current situation, the lithium batteries used in energy storage in China are still mainly lithium iron phosphate. The domestic power grid energy storage demand has exploded, which will directly drive the demand for lithium iron phosphate batteries.

The main reasons are: First, as the energy density threshold of new energy vehicles is getting higher and higher, lithium iron phosphate can no longer meet the demand, and it is urgent to find a channel for de-capacity;

Second, the safety of lithium iron phosphate batteries is relatively outstanding, and the cost-effectiveness advantage is more obvious.

Lithium iron phosphate batteries usher in development opportunities

"As a cutting-edge technology and strategic emerging industry that affects the future energy landscape, as policies become clearer, energy storage has entered a critical period of industrial development." Industry insiders said that as the application field gradually opens up, the market will accelerate expansion. It is expected that the capacity of my country's energy storage market will exceed 600 billion yuan in the next ten years, and by 2020, the cumulative installed capacity of my country's energy storage market will exceed 50GW, and the investment scale will reach 230 billion yuan.

Energy storage batteries have much higher requirements than power batteries. Now 1500 to 2000 cycles are enough to meet the requirements of passenger cars for power batteries, but the requirement for energy storage batteries is at least 8000 cycles.

Therefore, not all batteries can be used for energy storage, and backward production capacity may be eliminated. "Huang Shilin mentioned.

It is understood that the most critical factors for energy storage are the reliability of the battery and its service life. Basically, the future intelligent operation should be maintenance-free and have a service life of 20 years. At the same time, large-scale and standardized production should be carried out to reduce costs.

Basically, after being used in electric vehicles for 8 or even 10 years, it can still be used for energy storage, which is impossible for many companies with high technical levels.

It is understood that in response to the long-life requirements of the energy storage market, CATL is also vigorously developing long-life batteries.

Current energy storage projects are still dominated by power grid groups

At the same time, due to the current Domestic power grid energy storage projects are still in the stage of being dominated by power grid groups. Therefore, in the selection of lithium battery suppliers, domestic top-ranked lithium iron phosphate battery companies are the mainstream choice.

So far, the head effect in the power battery industry has been very obvious. The market share of the top five power battery companies in terms of installed capacity was 61% in 2017, and it has increased to 71% in the first half of 2018.

"From the market share of CATL and BYD in the previous two years, it increased from 44% in 2017 to 63% in the first half of 2018. The situation in the second half of the year is estimated to be not much different from that in the first half of the year, so the head effect is very obvious.

The concentration of companies ranked at the top of the shipment volume is very high. Our current demand for power batteries is increasing, and the entire production is very tight. Orders have been scheduled until 2025. "Huang Shilin mentioned.

It can be seen that the future energy storage market is a very big cake, but similar to the new energy vehicle industry, not all battery companies can share it.

Under the influence of technical limitations and weak brand effect, backward power battery production capacity still faces the fate of elimination.

But it is undeniable that the strong rise of domestic power grid energy storage will surely win a new market breakthrough for lithium iron phosphate batteries.

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