Future Analysis of China's Energy Storage Lithium Battery Market

Energy storage lithium battery is still in the market introduction stage, mainly due to the cost, technology policy and other factors. For energy storage lithium battery, in the next five years, China's energy storage lithium battery industry will enter the growth period, with a large market potential.

The overall development trend of lithium-ion battery industry is positive

The Ministry of Industry and Information Technology released the first half of 2021 national lithium-ion battery industry, pointed out that energy storage lithium-ion batteries generally achieve more than 5,000 cycle life, the leading enterprises product cycle life of more than 10,000 times. In the first half of 2021, led by the ambitious goal of "carbon neutral carbon peak", the national lithium-ion battery industry achieved rapid growth, product quality and process technology continued to improve, the integration of light and storage The trend is obvious, the investment and financing market is active, and the overall development trend of the industry is positive.

Energy storage lithium-ion battery development prospects and investment analysis

Recently, due to the new energy industry chain, lithium iron phosphate demand for high-speed growth, while the production of raw materials phosphate ore than the decline of nearly 40%. The contradiction between supply and demand, the ex-factory price of the product has reached the highest level in the past decade.

From the energy storage lithium-ion battery industry support, the relevant policies are also gradually introduced. At the local level, grid-connected operation, auxiliary services, demand-side response and subsidy mechanisms and other aspects of the policy support system is also increasingly improved.

From the perspective of the scale effect and utilization of lithium-ion battery storage, electrochemical energy storage on the grid side and power side can be more concentrated and scale utilization, energy storage lithium-ion battery than user-side energy storage efficiency, and safety and controllability is stronger, most countries around the world in the power side and grid side have introduced a large number of incentives, China should also learn from international experience, in the grid side and power side energy storage to strengthen policy support and guidance.

The national standard "Safety requirements for lithium batteries and battery packs for electrical energy storage systems" was officially issued, which is managed by the Ministry of Industry and Information Technology and drafted by the Electronic Standards Institute and other units. The meeting was held, marking the official start of the preparation of the strong standard. The next step, the Ministry of Industry and Information Technology Department of Electronic Information will guide the relevant technical institutions to accelerate the development of strong standards to promote the healthy and orderly development of the lithium industry. At the same time, it will also continue to promote the supply-side structural reform of the lithium-ion industry, guide industrial transformation and upgrading and technological progress, and strongly support the "2030 carbon peak, 2060 carbon neutral" ambitious goal.

It is understood that the growth of lithium-ion batteries for energy storage lags behind that of power batteries. In the field of energy storage batteries, lead-acid batteries still occupy a more important market, but due to lead pollution and environmental protection, the replacement effect of lithium batteries has become more and more obvious, and it is expected that lithium-ion battery energy storage is the main form of future development.

The future of China's energy storage lithium battery market potential is large

With the new construction and expansion of 5G base stations, the demand for lithium-ion battery storage backup power for communication iron rises. Communication operators as well as tower companies to tender the form of bulk procurement of communications backup lithium batteries. According to preliminary statistics from GaoGong Lithium, in 2020 China's energy storage lithium battery shipments 16GWh, of which 6.6GWh of power storage, accounting for 41%, 7.4GWh of communication storage, accounting for 46%, others including urban rail transit, industrial and other areas with energy storage lithium batteries.

Energy storage lithium battery is still in the market introduction stage, mainly due to the cost, technology policy and other factors. In terms of energy storage lithium batteries, in the next five years, China's energy storage lithium battery industry will enter the growth period, with a large market potential.