[Separator Weekly Report] A Company Recalls Power Batteries on a Large Scale Due to Separator Issues! Wet-Process Separator Material Prices May Continue to Decline

【Company】Kanghui New Material Subsidiary's Capital Increased to 1.1 Billion Yuan

Recently, Kanghui Dalian New Material Technology Co., Ltd. underwent a business registration change, with its registered capital increasing from 640 million yuan to 1.1 billion yuan, an increase of approximately 72%. The company was established in March 2021, with Jian Liu as its legal representative. Its business scope includes the transportation of hazardous goods by road, production of hazardous chemicals, manufacturing and sales of synthetic materials, and manufacturing and sales of bio-based materials.

The equity penetration chart shows that the company is wholly owned by Kanghui New Material Technology Co., Ltd., a subsidiary of Hengli Petrochemical (600346).

According to available information, Kanghui New Material is focusing on building globally leading high-end, differentiated, and environmentally friendly functional film materials, high-performance engineering plastics, and biodegradable materials. In the field of functional film materials, Kanghui New Material has broken foreign technical barriers in areas such as mid-to-high-end MLCC release base films, polarizer release protective base films, OCA release base films, environmentally friendly RPET base films, composite current collector base films, lithium battery process protective films, photosensitive dry film base films, and ultra-thin capacitor films. The company continues to address "bottleneck" issues in the new material sector and possesses industry-leading core competitiveness and industrial development capabilities.

【International】Samsung Recalls Power Batteries on a Large Scale Due to Battery Separator Damage

On February 8, Samsung Electronics announced a large-scale recall plan involving 180,196 vehicles under Ford, Audi, and Stellantis. The high-voltage battery packs in these vehicles have a risk of malfunction, which may lead to fires.

According to the US National Highway Traffic Safety Administration (NHTSA), the battery separators in the battery cells of these vehicles may sometimes become damaged. Combined with other internal interactions within the battery cells, this could result in fires.

【Update】Shenzhen Senior Technology Material: Focus on Fast Charging Technology and Solid-State Battery Development

On February 12, Shenzhen Senior Technology Material (300568) announced that the company recently conducted investor relations activities, focusing on the development of fast charging technology, solid-state battery products, and semiconductor material businesses. The company stated that in terms of fast charging technology, it has successfully mass-produced new-type coated separator products. These separators feature high-temperature resistance, high strength, and fast wettability, effectively improving charging efficiency and reducing the risk of thermal runaway in batteries. Additionally, the company plans to continuously diversify its product range and structure in response to changes in global markets and customer demands, enhancing its market competitiveness.

In the solid-state battery sector, the company has established partnerships with multiple enterprises. The oxide electrolyte of its investee company, Shenzhen Xinyuanbang Technology Co., Ltd., has achieved mass production, while sulphide and polymer electrolytes are in the small-scale supply stage. Notably, its collaboration with Daicel Corporation will focus on the R&D of half-solid state battery separators. Meanwhile, the company is actively developing solid-state electrolyte separators and has received support from the provincial key field R&D program. It plans to further increase investment in this area in the future.

【Interaction】Taihe New Material: Aramid Coated Separators Undergoing Validation by Power Battery Enterprises, Some Entering Business Negotiation Stage

On February 13, Taihe New Material (002254) stated on the investor interaction platform that its aramid coated separators are undergoing validation by power battery enterprises, with some validations already completed. The next step will involve entering the business negotiation stage.

【Think Tank Insights】Wet-Process Separator Material Prices Likely to Continue Declining

Recently, SMM analyzed that looking ahead, in terms of production, the release of new capacity by 2025 is expected to enable separator enterprises to compete more aggressively for market share, driving further production growth. In terms of prices, the current prices of dry-process separators are at a relatively low range, close to the cost line, making further price reductions difficult. Dry-process separator enterprises exhibit a strong sentiment to stand firm on quotes. For wet-process separators, with the gradual release of new capacity, the wet-process separator market is likely to face an oversupply situation. Under such circumstances, wet-process separator enterprises may initiate a new round of price wars to compete for market share, leading to a potential continued decline in wet-process separator material prices in the future.