[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

13 mins ago

Magnesium Ingot Inventory Rises Slightly, Prices Decline Amid Weak Demand and Trading Sentiment

【SMM Magnesium Flash】This week, the social inventory of magnesium ingots increased by 0.71% month-on-month, showing a pattern of slight accumulation. The inventory at Tianjin Port decreased slightly, with port ex-warehouse mainly relying on early stock orders and a small number of new orders for support. New overseas orders were limited, lacking sustained momentum for ex-warehouse. This week, magnesium ingot prices declined weakly, with traders showing a strong sentiment of buying when prices rise but not when prices fall, and a weaker willingness to speculate and stock up, leading to a slowdown in the pace of stock-up procurement. However, there are still some early stockpile transfers and document submission stock-up operations in Shaanxi and Shanxi, resulting in a slight increase in inventory pressure. Overall, the current social inventory pressure still exists. The price volatility coupled with no significant recovery in demand has suppressed the pace of traders' procurement and stock-up. In the future, it is necessary to pay close attention to the actual release of overseas stock-up orders in September.

13 mins ago

18 mins ago

[SMM Chromium Flash] Afarak's H1 Revenue Falls 26% as It Leans on Stable South African Chrome Ore Ops

Afarak Group SE, dual-listed on Nasdaq Helsinki and the London Stock Exchange, reported H1 2026 revenue of €57.1 million, down 25.9% year-on-year from €77.1 million, as weaker European demand for low-carbon ferrochrome weighed on group results. EBITDA fell 77% YoY to €1.6 million, with margin contracting to 2.8% from 9.0%, while the group swung to a net loss of €0.7 million from a €2.4 million profit in H1 2025. Management attributed the downturn primarily to its European specialty alloys business, where consumption from the automotive and oil-and-gas sectors softened and disruptions linked to the conflicts in Iran and Ukraine affected its customer base. Processed material sold fell to 11,372 mt from 15,354 mt a year earlier, prompting the group to trim low-carbon ferrochrome output to better match weaker demand. Cash flow from operations nonetheless improved to €1.5 million from €0.1 million, and headcount held broadly steady at 625 versus 613 a year earlier. Afarak's South African chrome ore operations proved comparatively resilient, with the group describing the segment as expected to remain stable and reporting smooth concentrate output at its new Vlaakport mine wash plant. Mined tonnage still declined 12.8% YoY to 130,256 mt from 149,410 mt, showing that even the steadier side of the business was not fully insulated from the broader downturn, though it held up markedly better than Afarak's European alloys operations.

18 mins ago

2 hours ago

Anhui Guomei Launches 24,000-Ton Magnesium Alloy Project to Boost Lightweight Applications

【SMM Magnesium Flash】Recently, the environmental impact assessment (EIA) for the first time was publicized for the 24,000-ton annual magnesium alloy new material project of Anhui Guomei New Material Technology Co., Ltd. The project, located in Duji District, Huaibei City, will establish production lines for melting and casting, semi-solid injection molding, die-casting, CNC machining, and surface treatment, and will be accompanied by a research and development center for academician workstations. Relying on the technological achievements of Professor Jiang Bin's team from Chongqing University, the company aims to build an intelligent green production base for the entire magnesium alloy industry chain. The products are primarily targeted at lightweight applications in new energy vehicles, aerospace, intelligent robots, and other fields. With the completion and commissioning of the project, Anhui's magnesium alloy deep processing capabilities are expected to be further enhanced.

2 hours ago