[SMM Analysis] the installed capacity of lithium batteries in AVIC has gone against the trend, and strategic transformation is the key factor.

SMM2.7 Daily: with the disclosure of automobile certificate data in the last month of 2020, the transcripts of major battery companies in 2020 are finally able to see the truth. According to the data, the total installed capacity of Chinese battery enterprises reached 64.03GWH from January to December 2020, an increase of 3% compared with the same period last year in 2019. Overall growth is relatively weak, partly because of the impact of the novel coronavirus epidemic. Sales of new energy vehicles in the whole first half of the year suffered a cliff decline. After that, although it picked up somewhat in the second quarter, it still had a great impact on the full-year results.

However, if we take a closer look at this list, we can find that under the background that the industry has been affected by the epidemic this year, the decline of new energy subsidies, the removal of the whitelist of power batteries, and other unfavorable factors, this has made the performance of Ningde era, BYD, Guoxuan Hi-Tech and many other established brands have declined to varying degrees, among which, the performance of Ningde era has only slightly dropped by about 3%, but BYD, Yiwei LiNeng, Lishen and other installed capacity have dropped by more than 10%. In this case, the installed capacity of lithium batteries in AVIC surged 124% against the trend, and the annual installed capacity reached 3.3 GWH, ranking fourth in the domestic power battery installation, second only to Ningde era, LG Chemical, BYD and other giants, among which the monthly battery installation even surpassed international giants such as LG to break into the top three.

Source: SMM

Why can AVIC Lithium Power achieve this level?

We believe that the main reasons are as follows:

Source: SMM

In addition, it is reported that AVIC Lithium Power has turned its attention to Europe and plans to build its own factories in Europe while setting up three major industrial bases in Changzhou, Luoyang and Xiamen. In recent years, the European new energy vehicle market is extremely hot. Under the strong promotion of national policies, European new energy vehicle sales rose rapidly from 560000 in 2019 to 1.3 million in 2020, an increase of more than 130%. Due to the current shortage of local power battery capacity in the European market, AVIC Lithium Battery entering Europe can further seize European market share, break into the supply chain of European car companies, and expand its international influence. It is expected that there is still a lot of room for growth in the future.