Industry Trends | listed companies actively increase their size and expand production when domestic replacement of aluminum plastic film for lithium battery is carried out.

Aluminum-plastic film, one of the materials of lithium battery, may enjoy domestic substitute dividend at present. With the demand of head battery factory, the domestic market space is gradually opening up. A number of institutions have reported that the size of the aluminum-plastic film market is expected to reach 10 billion by 2025.

The Financial Associated Press reporter learned that at present, some companies have cut into the supply chain of head battery manufacturers, and a number of companies are actively working on power battery customer certification. With the opening of the market, most companies have put forward relatively clear production expansion plans.

Import substitution of domestic aluminum-plastic film

The surge in demand, the improvement of domestic technology and other factors, domestic aluminum plastic film ushered in the market space. Haishun New Materials (300501.SZ) said in a survey by investment institutions that the blowout development of the new energy industry, LG, SKI and other soft bag battery companies continue to increase production capacity, BYD blade batteries also began to use aluminum plastic film, the balance of supply and demand has been broken, coupled with the impact of the epidemic, Chinese enterprises have the opportunity to enter.

It is understood that due to the small domestic share of soft-package batteries and technical barriers and other factors, the domestic application of aluminum-plastic film is limited. On the other hand, BYD's soft package lithium iron phosphate (also known as small blade) battery adopts secondary sealing technology, that is, the core is packaged with soft package (aluminum-plastic film) and the blade battery is packaged with hard aluminum shell, which increases the demand for aluminum-plastic film.

At present, the relevant listed companies are actively expanding power battery customers, Mingguan New Materials (688560.SH) Securities Department told the Financial Associated Press that BYD has three rounds of certification and is currently in the third round of testing. New fiber new materials (002341.SZ) said that it has supplied aluminum plastic film for power to customers such as Guoxuan Hi-Tech, Funeng Technology and LG, after a paper announcement in December showed that Honeycomb Energy would purchase 20 million square meters of aluminum and plastic film products from its subsidiary Xinlun New Energy in 2022-2023.

Listed companies Mingguan new materials, new fiber new materials, Zijiang enterprise (600210.SH) have cut into the power battery supply chain system, Huazheng new materials (603186.SH), Haishun new materials and other companies are also starting to develop related customers.

Tianfeng Securities research report estimates that 70% of the current aluminum and plastic film market is occupied by overseas enterprises, and there is more room for domestic replacement. From the perspective of the global market space for aluminum and plastic films, neutral estimates predict that the market space for domestic manufacturers is expected to reach 10.3 billion yuan and CAGR up to 51% in 2025.

Active layout of industry companies

In the face of the gradual opening of the aluminum-plastic film market, the relevant listed companies are actively layout.

Haishun Xincai Securities Department told the Financial Associated Press that unlike 3C customers, power battery customers need to provide products on the production line to send samples. The company's 20 million square meters / year production line is expected to be put into production in 2022, after which it will start the power battery customer certification process.

The above-mentioned person told the Financial Associated Press that the aluminum-plastic film fund-raising project with an annual output of 10 million square meters has entered the trial operation stage, and the company's aluminum-plastic film production capacity has reached 20 million square meters / year by the end of 2021.

The above-mentioned personnel of Xinlun Xincai told the Financial Associated Press that in addition to the existing production capacity, the company's additional production line with an investment of 660 million yuan is being implemented as planned. in addition, the company's Japanese production line is also being relocated. The announcement shows that the new production capacity of 660 million yuan will reach 72 million square meters per year. After the production capacity is put into production, the total production capacity of the company may exceed 144 million square meters / year.

Zijiang Enterprise Securities Department told the Financial Associated Press that in addition to the existing production capacity, the company is also expanding production through Maanshan and Zizhu projects. Enjie shares (002812.SZ) previously announced that it intends to raise 1.6 billion for the construction of aluminum-plastic film production line, the project will achieve a production capacity of 280 million square meters / year.