[special topic of the year] the rapid development of electric bicycle industry enterprises accelerate the expansion of lithium battery demand this year may increase by more than 70%

SMM2, March 5: under the influence of the new national standard policy, the epidemic situation and people's consumption concept, the two-wheeled electric vehicle industry is developing rapidly. according to the Ministry of Industry and Information Technology, from January to December 2020, the output of electric bicycles was 29.661 million, an increase of 29.7 percent over the same period last year. In December, the production of electric bicycles was 2.224 million, up 6.5 per cent from a year earlier.

Recently, the leading enterprises of electric bicycles have also announced sales targets for 2021. Emma has put forward a sales target of 16 million. The new day has a production capacity layout of 10 million units, a minimum of 8 million units of Tailing, 10 million units and 10.01 million sets of knives.

Under the good development trend of electric two-wheelers, the share prices of leading enterprises soared in 2020, such as Yadi Holdings rose 721.54%, Mavericks Electric rose 228.84%, and Xinri shares rose 115.83%.

Enterprises step up the layout of production capacity, or cooperate with upstream battery manufacturers to seize market share. So SMM summarizes the capacity expansion of electric two-wheelers since 2020.

Mavericks Electric: on January 26th, far East Co., Ltd. announced its intention to sign a strategic procurement agreement. Jiangxi far East Battery, a wholly owned grandson company, and Maverick Electric, a smart lithium electric vehicle, carry out strategic cooperation on the production and supply of ternary lithium cells. From 2021 to 2023, Mavericks Electric purchased no less than 18650 ternary lithium cells from Jiangxi far East batteries, which is expected to generate business income of no less than 900 million yuan.

Brilliance Xinri: in late January, Funeng Technology and brilliance Xinri New Energy vehicle Co., Ltd. signed a strategic cooperation agreement, according to the agreement, the two sides will work together to achieve the goal of purchasing more power batteries than 5GWH in 2021-2023. At the same time, the two sides will set up a joint research and development team to jointly develop new energy vehicle power batteries and electric two-wheeled batteries. Funeng Technology provides Jiangsu Xinri with the support experience of new energy vehicles and electric two-wheelers, including passenger cars, logistics vehicles, motorcycles and derivative models. Under the same conditions, Jiangsu Xinri gives priority to the use of Funeng technology power batteries in new energy vehicles, electric two-wheelers and other products.

Emma: on November 26, 2020, the announcement of the audit results of the 169th meeting of the issuance Review Committee of the Securities Regulatory Commission held in 2020 showed that Emma Technology Group Co., Ltd. was approved for the first time. In August 2019, Emma Technology re-submitted its prospectus for listing on the main board of the Shanghai Stock Exchange. it plans to issue 65 million shares and raise 1.681 billion yuan for 13 investment projects.

Yiwei Lithium Energy: at the end of November 2020, Yiwei Lithium Energy announced that the company had examined and passed the "Bill on changing the use of part of the raised funds". The fund-raising project "Jingmen Yiwei Energy Storage Power Lithium Ion Battery Project" will raise 900 million yuan to set up a fully automated cylindrical ternary lithium ion battery production line; the main application areas are power tools and electric bicycle markets.

BYD: on October 29, 2020, the first batch of Didi citrus batteries sponsored by Fudi Battery Co., Ltd. (BYD's independent battery brand) was held in Shenzhen. He long, vice president of BYD Group and chairman of Fudi Battery, said at the launch ceremony that the "two-wheeler" battery project is an important product line of Fudi battery. The product line of Fudi battery's "two-wheeler" battery will grow dozens of times in the future, and a large number of "two-wheeler" battery production lines will be put into operation in Qinghai, and Synchronize will expand the business of "tricycle" and "four-wheeler" batteries.

Guoxuan Hi-Tech: in August 2020, Guoxuan Hi-Tech and DiDi signed a strategic cooperation agreement to join the bureau on a large scale to share motorcycles. At present, about 340000 sets of batteries have been supplied to motorcycles operated by Didi, and more than 600000 sets are expected to be supplied for the whole year. In addition to Didi, Guoxuan Hi-Tech also carries out business negotiations or technical docking with Hello Travel, Jueneng Dingli, Yadi, Emma, Luyuan, Mavericks and so on.

In June 2020, Lishen Battery and Xinri Electric vehicle held a strategic cooperation signing ceremony. Xinri Electric vehicle will purchase more than 50 million cylindrical 18650Universe 21700 ternary batteries from Lishen batteries. In addition, Lishen battery has been supplied to Meituan's two-wheel business department since June this year.

SMM believes that the introduction of a "new national standard" for electric bicycles has accelerated the process of replacing lead-acid batteries with lithium-ion batteries in the industry. under the influence of the epidemic, people have reduced their modes of public transport, bought more electric two-wheelers, and added to the fact that more young people choose to ride to work. Electric bicycles are safe, cheap and easy to charge, and also increase consumers' willingness to buy electric bicycles. This has also led to a further increase in market demand for lithium batteries. Taken together, SMM expects demand for lithium batteries for 2021 electric two-wheelers to grow by more than 70 per cent year-on-year.