Massive new aluminium battery foil capacity to come on stream

Published: Aug 15, 2023 15:46

Source: SMM

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SHANGHAI, Aug 15 (SMM) –

Based on research data from SMM, as of July 2023, 17 new aluminium battery foil projects are either under construction or have commenced production within China, boasting a total designed capacity of 1.272 million mt. It is projected that 15 out of these projects will be fully operational prior to the close of 2024.

Throughout 2020 and 2021, battery foil rose to prominence within the aluminium foil industry, experiencing nearly a twofold production increase at a consistent growth rate of approximately 100%. Simultaneously, the number of enterprises with stable production capabilities escalated from below five in 2020 to a present total of 16. Currently, the competitive dynamic within the battery aluminium foil market has shifted from a tripartite supremacy to a broad spectrum of contenders battling for market position.

Driven by high profits and market excitement, new production capacities are continually emerging. The many upcoming projects mentioned in this report, most of which began construction around 2021, have led to a swift increase in the number of new market entrants and the supply of battery foils. Consequently, the battery foil market transitioned from 'supply shortage' to 'supply surplus' in the second half of 2022, leading to a continuous decrease in processing fees. In the face of the impending production of millions of mt of new capacity, there is a palpable sense of pessimism within the battery aluminium foil industry.

However, on the other side, the aluminium foil consumption per unit of sodium batteries is double that of lithium batteries. By 2023, this technology has essentially matured, paving the way for rapid expansion. Concurrently, the vigorous growth of the energy storage industry provides a strong impetus for the development of sodium batteries. Although the high cost of composite aluminium foil poses challenges to its large-scale replacement of traditional battery aluminium foil in the immediate future, the outlook for the demand of battery aluminium foil still holds promise.

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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.

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