[SMM Analysis] the output of power batteries increased by 6.7% in May, and the proportion of lithium iron phosphate batteries increased to 63.6%.

According to data from the China Automotive Power Battery Industry Innovation Alliance, China's power battery production totaled 13.8 12.92GWh in May 2021, an increase of 6.7 percent compared with April's GWH and 165.8 percent over the same period last year, according to data from the China Automotive Power Battery Industry Innovation Alliance. The output of power batteries in May has picked up slightly compared with the previous month. From 2021 to now, the cumulative output of power batteries from January to May reached 59GWH, an accumulative increase of 227.3%, which has exceeded the total output from January to October last year, accounting for 73.16% of the annual output of power batteries last year. The power battery industry as a whole is still in a clear upward trend.

According to the classification of materials, the output of ternary batteries in May was 4.99GWH, an increase of 62.9% over May last year, but a sharp drop of 25.4% from the previous month. The output of lithium iron phosphate batteries was 8.8GWH in May, up 317.3 percent from the same period last year and 41.6 percent from the previous month. In terms of cumulative data, the cumulative output of ternary batteries from January to May reached 29.5GWh, an accumulative increase of 153.4 percent, and the output of lithium iron phosphate batteries reached 29.9GWh, an increase of 360.7 percent over the same period last year.

In terms of market share, ternary batteries and iron lithium batteries still occupy an absolutely dominant position in this month's power battery production, accounting for 99.8% of the total power battery output in that month, but with the gradual release of lithium iron phosphate batteries, the proportion is very different from that in the past, of which lithium iron phosphate battery production rose to 63.6% this month, far exceeding 36.2% of ternary batteries. And this is also the first time since January 2020 that lithium iron phosphate batteries have exceeded ternary batteries in the proportion of power batteries. However, considering that it was a special period when the novel coronavirus epidemic was raging, the overall domestic economic activity, the overall production and marketing of the power battery industry was greatly affected, there were many factory shutdowns, and the total output of power batteries in the current period decreased by nearly 86.6% month-on-month, so the overall reference value was not high. This time is in the domestic new energy industry from policy-driven to consumption-driven, downstream terminals continue to release the amount of time, so at this time lithium iron phosphate battery production increased significantly, to a certain extent, can better reflect the real situation of the current market. Recently, with the improvement of the diversity of downstream new energy vehicle products, the A00 class models, which mainly hit the middle and low end and meet consumers' short-and medium-distance trips, have gradually become popular, and the sales volume has gone up substantially, while the price sensitivity of this type of products is high. the characteristics of cost reduction demand from manufacturers determine a high degree of agreement with lithium iron phosphate materials, which to a certain extent drives the demand for lithium iron phosphate batteries. In addition, the current new energy activities continue to carry out in the countryside, BYD pure electric models to fully switch blade batteries and other factors continue to increase the market demand for iron-lithium batteries, and it is expected that the high prosperity of iron-lithium batteries will continue in the future.

数据来源：SMM