Lithium battery cathode materials have a broad consumer market and national policies promote industry development

Lithium battery cathode materials are part of the materials constituting lithium-ion batteries, accounting for more than 30% of the total cost of lithium-ion battery materials. Their quality directly affects the safety, energy density and other core performance indicators of lithium-ion batteries.

The upstream of the lithium battery cathode material industry chain is the supply of lithium ore, manganese ore, conductive agents, binders and other raw materials; the midstream is the production of various subdivided products, including lithium manganate, lithium cobalt oxide, lithium iron phosphate, ternary Materials, etc.; downstream, it is mainly used in the production of various types of lithium batteries such as energy storage lithium batteries and power lithium batteries, which are widely used in electric vehicles, consumer electronics, new energy vehicles and other fields.

According to the “Lithium Battery Cathode Materials Industry Market Status and Investment Prospects Forecast Report 2023-2027” released by the Industrial Research Center, from From the perspective of the downstream market, as my country’s economy continues to develop, national living standards continue to improve, the demand for consumer electronics such as smartphones and computers continues to grow, and emerging industries such as wearable devices and mobile robots continue to develop, the lithium battery market demand continues to be released. New energy vehicles are the main application areas of power batteries. In recent years, driven by national policy support and market demand, domestic new energy vehicle production and sales have maintained a rapid growth trend, and the market demand for power batteries has continued to increase. In addition, as the energy structure continues to be optimized, photovoltaic and wind power projects are gradually implemented, driving the demand for energy storage batteries to continue to grow. Overall, lithium battery cathode materials have a broad consumer market.

In recent years, driven by market demand, my country’s lithium battery cathode material shipments have increased significantly, and the industry is developing well. In 2022, China’s lithium-ion battery cathode material shipments will be approximately 1.95 million tons, a year-on-year increase of approximately 78%. From the perspective of market segments, lithium iron phosphate cathode material shipments account for the highest proportion of lithium battery cathode material shipments, close to 59%, ternary materials account for approximately 34%, ranking second, and lithium cobalt oxide and lithium manganate account for about 4%, which is relatively small.

In terms of policy, in recent years, the state has issued policies such as the “Notice on the Collaborative and Stable Development of the Lithium-ion Battery Industry Chain and Supply Chain” and the “Guidance on Promoting the Development of the Energy Electronics Industry” to encourage and support the lithium battery cathode material industry and provide support for the industry. The industry provides a good development environment.

Industry analysts said that there are currently a large number of domestic lithium battery cathode material manufacturers and the market competition is fierce. Due to the wide range of product applications, It is difficult for a single brand to occupy a large market share, and the industry concentration is low. Domestic lithium battery cathode material manufacturers mainly include Hunan Yuneng New Energy Battery Materials Co., Ltd., Shenzhen Defang Nano Technology Co., Ltd., Jiangsu Longpan Technology Co., Ltd., Ningbo Rongbai New Energy Technology Co., Ltd., etc. Among them, Hunan Yuneng New Energy Battery Materials Co., Ltd. accounts for more than 14% of the market share of lithium battery cathode materials, ranking first.