[SMM Analysis] it will take time for overseas new energy vehicle plants to gradually resume production and recover terminal demand.

Published: May 10, 2020 23:16

Save

SMM, 10 May:

LG Chemical won the first place with 27.1 per cent market share in the first quarter of 2020, beating the powerful Ningde era and Panasonic, according to a new report by SNE Research, a South Korean market research firm. LG's market share more than doubled from the same period in 2019 to second place Panasonic (25.7 per cent), while Ningde, the defending champion of the year, came in third with 17.4 per cent, down from 23.4 per cent in the same period in 2019, the report said.

According to SMM research, due to the impact of the epidemic, the operating rate of domestic battery enterprises was low in the first quarter, but since then, due to no obvious improvement in terminal demand, the operating rate of battery factories has not improved; in addition, the overseas epidemic began to spread in the middle and late March, leading battery enterprises export orders were affected, and the power battery market was still in a depressed state in the second quarter.

At present, among the battery enterprises, the demand of LG industry chain is relatively stable, mainly relying on the full production of Tesla Shanghai factory.

In addition, BYD has focused on promoting lithium iron phosphate batteries this year, and its Chongqing plant has been in full production, driving demand for some lithium iron phosphate materials.

In late March, nearly 20 overseas automakers, including Volkswagen, BMW, Toyota, Daimler, Fiat Chrysler, Peugeot Citroen, GM and Ford, have closed or plan to close more than 100 factories. According to relevant statistics, new energy plants, including Volkswagen, Audi, Porsche and Volvo, basically resumed work on April 20, while BMW's new energy plant in Leipzig, Germany, will resume work after May 18. At present, the epidemic has had an impact on the production of new energy vehicles for at least two months, and demand has to wait for the epidemic to be brought under control. European new energy vehicle sales data in April show that, with the exception of Germany, which still shows strong year-on-year growth, year-on-year sales in other countries have declined significantly, including countries severely affected by the epidemic, such as Spain and Italy, where new energy vehicles have dropped by more than 100% year-on-year.

Cobalt lithium cars batteries

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

【Flash | A Perfect Storm of Supply Risks Keeps Molybdenum Oxide Near Recent Highs】

SMM learned that overseas mine production cuts, extreme weather in South America, and declining ore grades and recovery rates were intensively discussed during a recent industry association meeting. These concerns strengthened expectations of tighter overseas molybdenum supply, stimulated some buying and pushed molybdenum oxide prices to around $34/lb Mo. Supply-side expectations continue to support prices, while some mine production, grade and recovery issues may not improve materially until around 2028. China’s market also remains firm, but elevated prices are discouraging chasing. Well-funded buyers, low-inventory users and producers with firm orders continue to purchase as needed, while processors mainly restock to maintain production.

1 hour ago

Transactions improve marginally; magnesium ingot consolidates in the short term [SMM magnesium ingot spot report]

[Improving marginal transactions, magnesium ingot consolidates in the short term] Today, China's magnesium ingot offers held steady at 15,800 yuan/mt. Some traders entered the market to stockpile, driving a slight recovery in transactions and easing bearish sentiment. The subsequent market trend will still depend on the follow-through strength of restocking orders, with the short-term market maintaining a fluctuating trend.

1 hour ago

4 hours ago

Jintian Titanium to Raise $30M for Phase II of Advanced Titanium Alloy Project

【SMM Titanium Flash】On September 14th, Jintian Titanium Industry disclosed a private placement plan, intending to raise no more than 300 million yuan to invest in the construction of an advanced titanium alloy industrialization project for high-end equipment (Phase II). The project will add a 10,000-tonne ultra-large rapid forging unit to enhance the forging capacity of large-sized bars and extra-heavy wide forgings. The company's main products include titanium and titanium alloy bars, forgings, and components. It has already delivered batches of titanium alloy high-pressure gas cylinders to units under China Shipbuilding. The main structure of the Phase I project has been completed, and equipment joint debugging and testing have been completed. After commissioning, it will increase the annual production capacity of titanium alloy bars by 2,800 tonnes and forgings by 200 tonnes. With the implementation of the Phase II project, the company's supply capacity of high-end titanium materials for aerospace and marine equipment is expected to further enhance.

4 hours ago