Looking at China's Lithium Battery Global Opportunities from Two Dimensions

The global energy reform has driven the rapid expansion of the new energy automobile industry, and the globalization of the power lithium battery supply chain has become an economic demand and industrial trend. In the blue ocean market of new energy vehicles, the global power lithium battery supply chain will form more of a positive-sum game rather than a zero-sum game. Regarding my country's power lithium battery supply chain, it will also usher in two dimensions of global opportunities. The domestic supply chain segment leader will have the opportunity to grow into a global leader in the future. One dimension is that my country's power lithium battery industry chain is accelerating its entry into the supply chain system of global leading car companies and international battery manufacturers in the Chinese market. The logic behind the growth lies in the fact that the Chinese market is a battleground for the global leading auto companies. Overlapping the continuous expansion and opening up of the Chinese market, the global leading auto companies have vigorously increased their investments in electrification in my country driven by the transformation of new energy sources, which has also attracted Overseas power lithium battery companies expand their presence in China. After the growth experience of technology accumulation, product upgrades, production expansion, and market reshuffle, my country's power lithium battery industry chain has formed a group of highly resilient segmented leading companies. Global leading auto companies and international battery manufacturers want to improve cost economy and implement scale expansion, and choosing local high-quality supply chains has become an important choice. It can be seen that on the battery side, a group of Chinese companies including Ningde Times, Time SAIC, Lishen, Wanxiang, and AVIC Lithium have started to supply batteries for joint venture car companies. On the material side and manufacturing side, more and more companies are supplying through joint ventures with foreign companies, either directly or indirectly through the battery side. Under the effect of scale and industrial clusters, my country's power lithium battery industry chain, which has continuously upgraded technology and technology, will usher in global opportunities. Another dimension is that my country’s leading companies in the power lithium battery industry chain are actively going global and becoming the mainstay of the global leading car companies or power lithium battery manufacturers’ supply systems. Among them, the leading companies in my country's new energy vehicle supply chain are also building global production bases around Europe and other new energy terminal markets. According to the construction progress, it is expected that preliminary results will come to fruition around 2022. A group of Chinese power lithium battery, materials and equipment companies, including CATL, Honeycomb Energy, Liyuanheng, Xinzhoubang, Kodali, Xingyuan Materials, Rongbai Technology, Jiangsu Guotai, and Shida Shenghua, have announced the establishment of factories in Europe. . According to incomplete statistics from Gaogong Lithium, as of now, there have been 15 cases of Chinese lithium battery companies going overseas to build factories, including 4 cases in the field of power lithium batteries, 10 cases in the field of materials, and 1 case in the field of equipment, involving an amount of more than 37 billion yuan. It is foreseeable that in the future, there will be some leading companies in my country that will establish global brands and reputations internationally and open up overseas markets. Although the 'going out' process is full of challenges and it will not happen overnight, based on the logic of global energy transformation, long-term returns will also be very generous.