[SMM analysis] the installed capacity of power batteries rose 61.3% in March, and the growth rate of lithium iron phosphate batteries

SMM4 March 14, the recent China Automotive Power Battery Industry Innovation Alliance released data in March 2021. Data show that the installed capacity of power batteries in China in March was 9.0GWH, up 224.8% from the same period last year and 61.3% from the previous month. The overall installed capacity showed a sharp upward trend compared with the previous month, and the market rebounded obviously.

From the point of view of the classification of material types, ternary batteries still occupy a dominant position in China's power battery market in March, with a total of 5.1GWH of ternary batteries, up 129% from the same period last year and 53.1% from the previous month. The lithium iron phosphate battery loaded 3.9GWH, up 627.9% from the same period last year, up 73.7% from the previous month.

In terms of trend, the installed capacity of lithium iron phosphate battery reached its peak in December 2020, and the monthly installed capacity increased to 6.3GWH and surpassed the ternary battery. Mainly due to policy stimulus and demand-driven in December last year, commercial vehicle demand released a huge monthly installed capacity of 3.4GWH, effectively increasing the overall market share of lithium iron phosphate batteries. However, this type of battery experienced two consecutive months of sharp decline in January and February this year, when it was only about 1/3 of its December installed capacity, 2.24GWH. Due to the upcoming release of new models, such as Biya Dihan, demand has been delayed and demand for cars has been suppressed during the Spring Festival holiday, leading to a sharp decline in sales of A00-class models, which mainly hit the middle and low end. The trend of ternary battery is similar, but the trend of rise and fall is more moderate. The overall market share of lithium iron phosphate batteries rebounded slightly this month, up 3 percentage points from 40.2% last month to 43.2%. This is also the second month in a row that the market share of lithium iron phosphate batteries has increased.

From a cumulative point of view, the installed capacity of power batteries in China reached 23.24GWH in the first quarter, an increase of 308% over the same period last year, of which the installed capacity of ternary batteries reached 13.82GWH, an increase of 220% over the same period last year, and lithium iron phosphate reached 9.39GWH, an increase of 603% over the same period last year. The overall growth of the power battery market is obvious, and with the follow-up continuous volume of China's new energy vehicle market and the development of a new round of new energy activities to the countryside, the medium-and short-distance demand of domestic small and medium-sized cities has been further tapped. The demand for A00-class models with iron-lithium batteries may usher in further growth, while superimposed BYD and other car companies choose iron-lithium batteries because of cost or technology, and their market share may be further expanded.