The upstream equipment manufacturers in the upstream of lithium battery expansion have increased the price one after another.

The rapid development of new energy has ushered in the trend of lithium battery expansion. Data show that the total production capacity of domestic lithium battery manufacturers may reach 485 GWH in 2022, which will increase by 187.76% compared with 2020.

The reporter learned that at present, the major lithium power equipment factory order volume, some manufacturers have been increasing the code to expand production, at the same time, with the recovery of overseas markets, major manufacturers have layout overseas and more gains. Some research institutions believe that the expansion of power batteries and the import substitution of domestic equipment will lead to new demand growth points for lithium power equipment enterprises.

Demand quantity of lithium power equipment

In 2021, the sales of new energy vehicles in China continued to exceed expectations, and the permeability increased significantly, driving the demand for lithium batteries and ushering in market opportunities for lithium battery equipment. "benefiting from the development of the downstream industry and the improvement of customer demand, the company signed a new order of 9.235 billion yuan (excluding tax) from January to June 2021, setting a record high", as a supplier of LG, SK and other leading enterprises of lithium batteries, pilot Intelligence (300450.SZ) said in the announcement of Wuxi pilot Intelligent equipment Co., Ltd. on the reply to the inquiry letter of Shenzhen Stock Exchange's 2021 semi-annual report on September 29th this year.

The reporter combed the relevant announcements of listed companies and found that in the relevant announcements of winning bids or major contracts for lithium power equipment business, the number of announcements in 2021 was significantly higher than that in 2020, and most of the announcements in 2020 were concentrated in October-December. At the same time, judging from the announced amount, the bid-winning amount of relevant companies increased significantly in 2021, of which the amount of lithium battery in a single winning bid for 688559.SH has reached 148.98% of the revenue for the whole year of 2020.

300457.SZ has said in a previous institutional survey that the growth of its main lithium battery industry so far this year is very strong. As of October 20, 2021, the company's newly signed and winning orders have exceeded 9 billion yuan, and the newly signed valid orders have exceeded 7.2 billion yuan. In addition to Ningde Technology, Guoxuan Hi-Tech, Honeycomb Energy and other domestic head battery companies, the company also received previous orders from BMW. As of the end of October, the accumulated orders from offshore brands so far this year are close to 500 million yuan.

Since November, battery companies such as Ningde Times, Yiwei Lithium Energy and AVIC Lithium Power have announced plans to expand production, which may continue to drive equipment orders. A person from the leading intelligent securities department told reporters that it will take some time for the downstream battery factory to announce the plan and formally implement it, and the node of customer equipment procurement needs to be determined according to its own expansion process.

According to the Zeshang Securities Research report, benefiting from the wave of lithium power expansion, the global lithium equipment market is expected to exceed 200 billion yuan by 2025, with a compound growth rate of 38% in the next five years.

Listed companies expand production one after another

Leading Intelligence previously said in an institutional survey that the lithium battery industry has entered a new round of expansion, with an explosive growth in demand for equipment. Equipment companies that rapidly increase production capacity and complete customer delivery in a short period of time will win the first opportunity in the competition.

In September, 300490.SZ attracted market attention because of the cancellation of two orders by the Ningde era, and the reason for the cancellation was delivery. Huazi Technology said that due to the conflict between the Ningde-era project delivery and other orders of the company, the Ningde-era delivery requirements could not be guaranteed, so the two sides agreed to cancel the order. At the same time, the company said that there will still be some pressure on delivery in the future. In order to ease the delivery bottleneck, Huazi Technology is also expanding its production capacity. Changsha, Wuhan and Shenzhen, which are expanding their production capacity, are expected to have a combined production capacity of 3 billion yuan next year.

Yinghe Technology has also said in an institutional survey that the current industry orders are improving, and the main limitation facing the industry is whether the delivery capacity can meet the needs of customers. In order to ensure that the delivery company has been expanding its hand-made factory, Yakang Precision, which is responsible for making rolls in the middle, has moved to the new factory area, and both the plant area and the output value after delivery have been doubled, and the subsidiary in charge of lamination may further expand production after that.

688006.SH has previously announced production expansion and plans to invest 1.371 billion yuan in the construction of intelligent manufacturing projects for lithium-ion battery charging and discharging equipment, including the construction of 100000 square meters of intelligent production workshop and 45000 square meters of auxiliary buildings to expand production scale. The company said that after the completion of the project, it will effectively increase the company's production capacity.

Citic Construction Investment's high-end manufacturing team believes that thanks to the gradual shift from the new energy vehicle market to consumer-driven and the continuous increase in the support of new energy vehicles in Europe and the United States, the high growth trend of the terminal consumer market for power lithium batteries will continue. Mainstream lithium battery production enterprises have increased capacity expansion, driving the growth of demand for lithium battery equipment. At the same time, domestic lithium power equipment has achieved import substitution in most process links, which is initially competitive in the world. It is expected that the actual bidding amount of lithium battery production equipment will continue to grow in the coming year, and the equipment manufacturers who are at the head of the lithium battery supply chain system and have technical strength and capacity flexibility may highly benefit.