With the transformation of the global energy structure and the advancement of sustainable development, the lithium battery energy storage industry will usher in new development opportunities in 2024. This article will take stock of several key trends in the lithium battery energy storage industry in 2024 and explore its competitiveness and technological innovation in the global market.
Since the beginning of the year, the energy storage field has shown a busy scene, with nearly 30 related projects signed or started construction in an orderly manner. The investment involved in these projects is considerable, close to 100 billion yuan, and the corresponding production capacity exceeds 150GWh. Many regions have ushered in the implementation of major projects, such as the Yongtai 10GWh lithium battery energy storage project in Dafeng Port, Yancheng, Jiangsu, and the injection of 3.8 billion yuan has injected new momentum into the development of local industries; Sunwoda has invested 6.2 billion yuan in the New Energy Industrial Park of Tengzhou High-speed Railway New Area, Shandong Province, to build a 5GWh container energy storage system covering lithium battery recycling and new energy storage intelligent manufacturing projects, and to plan a 5GWh container energy storage system at the same time, which shows the long-term consideration of the company's deep cultivation in this field and layout for the future. Such large-scale investment and capacity expansion have laid a solid foundation for the subsequent development of the lithium battery energy storage industry, which is expected to ensure the supply of products in the follow-up market and meet the growing demand.
Increasing global market share
In 2024, the competitiveness of China's lithium battery energy storage industry in the global market will be significantly enhanced. In the first three quarters, global shipments of lithium batteries for energy storage exceeded 215GWh, of which Chinese companies shipped more than 200GWh, with a global market share of more than 93%. This data not only shows the dominance of Chinese lithium battery energy storage companies in the global market, but also reflects China's key role in the global energy transition.
According to the latest forecasts from the International Energy Agency (IEA), global lithium-ion battery production capacity will experience significant growth in the coming years. Here's an overview of this trend:
By 2025, the global lithium-ion battery production capacity is expected to reach 3,970GWh, of which China will occupy the largest share, with an estimated production capacity of 2,930GWh, accounting for 73.8%. This shows that China continues to maintain its leading position in global lithium battery production. The production capacity of Europe and the United States should not be underestimated, with European capacity expected to be 330GWh, accounting for 8.31% of global capacity, while the United States has 440GWh, accounting for 11.08%. The rest of the world is expected to reach 270GWh, accounting for 6.8% of global capacity.
Active development of overseas markets
In the face of fierce competition in the domestic market, Chinese energy storage companies are actively expanding overseas markets, with products ranging from batteries and other parts to the current whole industry chain products have entered the market one after another, and the destinations are radiating to the Middle East, Australia, Southeast Asia, North Africa and other markets. This strategy not only provides new growth points for enterprises, but also contributes to the optimization and upgrading of the global energy structure.
Figure: Lithium battery energy storage market inventory
Technological innovation and product upgrading
Technological innovation is the core driving force to promote the development of the lithium battery energy storage industry. CATL and other companies have updated a number of new achievements in energy storage products to accelerate the development of the energy storage industry. For example, the 6.25MWh Tianheng energy storage system released by CATL, equipped with a dedicated long-life battery cell L series products, and the launch of "one three-purpose" battery, are all manifestations of technological innovation, and these products have a wide range of application prospects in overseas markets, long-life and high-density scenarios.
Price changes and market supply and demand
The slight fluctuation in the price of battery-grade lithium carbonate and the continuous decrease in the price of battery cells show the impact of market supply and demand on the price of energy storage batteries. The increase in the penetration rate of 300+Ah energy storage cells, especially the growth of 314Ah energy storage cells, indicates that the market demand for high-performance batteries is increasing.
Policy support and growth in installed capacity
The support of the policy provides a solid foundation for the development of the lithium battery energy storage industry. "New energy storage" was written into the work report of the Chinese government for the first time, indicating that the development of new energy storage will become one of the important tasks of China's economic and social development. The promulgation of the Energy Law of the People's Republic of China has further clarified the direction of promoting the high-quality development of new energy storage. By the end of 2023, the cumulative installed capacity of new energy storage projects that have been completed and put into operation across the country has reached 31.39GW, and the newly installed capacity is about 22.6GW, an increase of more than 260% from the end of 2022.
Conclusion
The development of the lithium battery energy storage industry in 2024 is not only a reflection of technological progress and market expansion, but also an important part of the global energy transition and sustainable development strategy. With the increase in global demand for clean energy, the lithium battery energy storage industry will usher in more development opportunities. The competitiveness and technological innovation capabilities of Chinese enterprises in the global market will further promote the healthy development of the industry and contribute to the optimization and upgrading of the global energy structure.
