In recent times, numerous listed companies have announced the postponement or termination of lithium battery projects, indicating a cooling investment enthusiasm for the lithium battery industry.
For instance, Huasoft Technology has ceased two electrolyte additive projects with a total investment of 450 million yuan; Anda Technology announced the transfer of a 60% stake in Inner Mongolia Anda to Ganfeng Lithium, whereas the original plan was for both parties to use Inner Mongolia Anda as a platform to construct an annual production of 20,000 tons of lithium iron phosphate cathode material project. Moreover, some listed companies have indicated that due to significant changes in the new energy battery market situation, they have decided to delay project construction and wait for the optimal implementation opportunity. From rushing into lithium battery projects to now withdrawing, the lithium battery industry has experienced dramatic ups and downs over the past two years and is entering a period of profound adjustment.
Firstly, the development of the lithium battery industry is becoming more rational. In the past few years, a large amount of capital has flowed into the lithium battery industry, leading to rapid capacity expansion. However, with the slowdown in market demand, many listed companies' investment projects are not competitive in terms of technology and cost, especially those that have diversified into the lithium battery field, and have no choice but to exit the market. This is the inevitable result of technological iteration and market survival of the fittest. Looking further, the rational development of the lithium battery industry helps to avoid vicious price competition, blind bandwagon effects, and associated risks, promoting the sustainable and healthy development of the lithium battery industry.
Secondly, high-quality capacity continues to expand. The lithium battery industry chain is currently facing a shortage of high-quality capacity, and strong enterprises are still expanding against the trend. After the industry enters a calm period, technological innovation becomes the key to the development of the lithium battery industry, and more and more companies are focusing on "rolling" technology, enhancing their market competitiveness by improving product performance and quality. At the same time, policy levels are also further promoting the industry's development towards "new" directions. The recent draft regulations and management methods for the lithium battery industry revised by the Ministry of Industry and Information Technology (MIIT) suggest guiding enterprises to reduce manufacturing projects that simply expand capacity and to strengthen technological innovation, improve product quality, and reduce production costs. Under the guidance of policy regulations, outdated capacities in the lithium battery industry will accelerate clearing out, while the utilization rate of high-quality capacities with technological advantages is expected to increase, and the profitability of leading companies will also improve.
Thirdly, the long-term positive trend of the industry remains unchanged. Although the lithium battery industry faces challenges and fluctuations in the short term, the long-term positive trend remains unchanged.
From a global market perspective, the low-carbon green transition is an overwhelming trend. With the development of new energy vehicles, energy storage systems, and other fields, lithium batteries, as a core component, will continue to see growing market demand. As technology advances and costs decrease, the performance of lithium batteries will continue to improve, and their application range will expand. The research and application of new types of batteries such as solid-state batteries and silicon-carbon composite materials will further enhance the energy density and safety of lithium batteries, bringing more market opportunities to the lithium battery industry. Since last year, overseas battery projects laid out by many leading battery companies are gradually being implemented. The shift from aggressive advancement to a cooling investment in the lithium battery industry also requires related listed companies to pay more attention to technological innovation and quality improvement. By developing new technologies and materials, they can enhance the energy density, cycle life, and safety performance of lithium batteries, promoting high-quality development of the lithium battery industry.
AUTOR：Voice of Securities Daily