Benefiting from the rapid development of my country’s soft pack battery industry driven by new energy vehicles

Power soft pack battery is a kind of power battery. It is packaged with aluminum plastic film. It has the advantages of large capacity, light weight, high density, low heat production and low internal resistance. Among soft-pack batteries, aluminum-plastic film is the most critical and technically difficult material. In the field of soft-pack batteries, aluminum-plastic film relies on imports as a key material, which greatly limits the development of my country’s soft-pack battery industry.

Globally, the aluminum-plastic film market is mainly occupied by Japanese companies. The aluminum-plastic film originated in Japan and was developed by Japan’s Showa Denko and Sony. It was subsequently developed and produced by DNP. Currently, DNP accounts for about 52% of the global aluminum-plastic film market. , followed by Japan’s Showa Denko accounting for 13%, South Korea’s Yulmura Chemical and China’s Selen Technology accounting for 12% and 10% respectively. China has become an important battery consumer market in the world, but the supply of aluminum-plastic films is low, making it difficult to meet market demand and hindering the development of the soft-pack battery industry.

In terms of downstream applications, soft-pack batteries are mainly used in consumer electronics. As downstream electronic products gradually develop toward portability, thinness, and high endurance, the demand for soft-pack battery applications is rising. Soft-pack batteries have a high penetration rate in notebook computers. In 2021, the penetration rate of soft-pack batteries in notebook computers will be as high as about 97%. In addition, the penetration rate of soft-pack batteries in smartphones has also continued to rise, reaching about 88% in 2021. As terminal electronic equipment’s requirements for battery life and portability increase, the market penetration rate of soft-pack batteries continues to grow, and the industry still has development potential.

According to the “China Power Soft Pack Battery Industry Market Supply and Demand Research Consultation Report 2022-2026” released by the Industrial Research Center, in addition to Applications in consumer electronics, soft-pack batteries have good application prospects in new energy vehicles. Benefiting from policy support, my country’s new energy vehicle industry is developing rapidly, and power battery shipments continue to rise, reaching 140Wh by 2021. Among current power batteries, the market penetration rate of soft-pack batteries is low, only about 8%. In the future, as aluminum-plastic films become domestically produced, soft-pack battery production increases, and power battery application demand continues to explode, the soft-pack battery market demand will grow rapidly.

In the past five years, driven by the development of consumer electronics and new energy vehicle industries, the installed capacity of soft-pack batteries has shown a growth trend, from 5.8GKw in 2017 to 10.4GKw in 2021. In terms of market competition, my country’s soft pack battery market concentration is relatively high, with CR5 accounting for more than 70%. Funeng Technology has the highest market share at 21%, followed by Gateway Power, CATL, Yiwei Lithium Energy, Dofluoro and other companies.

Industry analysts said that soft pack batteries have high performance and can meet the requirements of high capacity, low heat and light weight in the terminal industry. It has been applied in consumer electronics and new energy vehicles, and the industry has good development prospects. Currently, the market penetration rate of soft-pack batteries is low. However, due to its advantages such as long life and fast charging and discharging, it has been recognized by the market and will be rapidly promoted. The future market development potential is huge. There are currently many companies in the domestic soft pack battery market, but the current market concentration is high and the market competition is fierce.