In the context of the power battery industry shifting from policy-driven to market-oriented competition, Liu Jincheng, chairman of EVE, pointed out in a recent public speech that the lithium battery industry has entered a new stage of benign development. He stressed that enterprises should remain rational, avoid blindly following the trend, and focus on technological innovation and market-oriented layout to cope with the complex challenges of the global market. China Exportsemi will combine the latest developments and industry trends of EVE to deeply analyze how lithium battery companies can seize the opportunity in the new stage.
Ⅰ Industry transformation: from policy-driven to market-led
Evolution of the stages of development
Liu Jincheng pointed out at the 9th Power Battery Application International Summit that the lithium battery industry has gone through three stages:
1. Policy-driven stage: Government subsidies and policy support are the main driving forces for the development of the industry in the early stage.
2. Market guidance stage: market demand has gradually become the dominant force, and enterprises have begun to pay attention to cost optimization and product performance.
3. Enterprise definition stage: At present, battery companies are promoting a profound transformation of the industry development model through technological innovation and product definition.
This evolution clearly shows that market-oriented competition has become the core driving force of the lithium battery industry.
Specific data corroborates this
1. Industry scale: In the past five years, global power battery shipments have jumped from GWh to TWh, achieving leapfrog growth.
2. EVE's performance: In the first three quarters of 2024, energy storage battery shipments reached 35.73GWh, a year-on-year increase of 115.57%, ranking second in the global market.
These data fully show that the lithium battery industry is in the marketization stage of rapid expansion, and is also facing more fierce competition.
Ⅱ Enterprise layout: the balance of globalization and diversification
1. Global expansion
Liu Jincheng introduced that EVE has laid out 10 factories around the world, and the Hungarian factory and Malaysia factory under construction have become the key nodes of its global layout:
Malaysia Factory: With a total investment of US$422 million, the first phase of the project is positioned as an "international cylindrical battery industrial park" and is expected to be put into operation in the first quarter of 2024.
Hungarian factory: close to the BMW Industrial Park, it will be completed and put into operation in the next two to three years to serve the European market.
These layouts show EVE's strategic determination to promote internationalization and lay a solid foundation for it to explore overseas markets.
2. Diversified cooperation models
This year, EVE launched the CLS (Cooperation, License, Service) model, with global cooperative R&D, technology licensing and service support as the core.
Typical project: In Mississippi, EVE, Cummins, Daimler Trucks and other companies jointly invested in the construction of a lithium iron phosphate battery factory with an annual production capacity of about 21GWh, mainly serving the North American commercial vehicle market, and is expected to ship in 2026.
This cooperation model not only helps EVE reduce the risk of globalization, but also strengthens its deep binding with international customers.
Ⅲ Technological innovation: differentiated competition between energy storage and power batteries
1. The leading edge of energy storage batteries
EVE's energy storage battery business performed well:
Shipments: In the first three quarters of 2024, energy storage cell shipments reached 35.73GWh, exceeding the full year of 2023.
LCOE: With the technological progress of energy storage systems, the LCOE has dropped to 0.1 yuan, which is expected to become the world's most economical green energy solution when combined with photovoltaics.
Representative products such as Mr.Big and Mr.Giant have been internationally certified and proven in several projects, further strengthening their market position.
2. Challenges and opportunities of power batteries
Despite the rapid growth of the energy storage business, the growth of EVE's lithium power batteries has been relatively slow:
Shipments: Power battery shipments in the first three quarters were 20.71GWh, an increase of only 4.96% year-on-year.
Reason analysis: The sales volume of some passenger car customers is lower than expected, coupled with the intensification of market competition, the power battery business is fluctuating.
In the face of challenges, EVE is actively exploring high-energy-density batteries and new material technologies to remain competitive in the power battery market.
Ⅳ How can companies avoid blindly following the herd?
Liu Jincheng proposed that lithium battery companies should avoid "short-sighted behavior" in market-oriented competition and achieve sustainable development through the following strategies:
Technological innovation-driven
Enterprises should increase R&D investment and focus on technological differentiation and cost optimization. EVE, for example, continues to promote the development of new cylindrical batteries to meet the market demand for high-performance and low-cost products.
Precise market positioning
There are differences in the demand for batteries in different markets, and enterprises need to customize products according to application scenarios. For example, EVE can launch large-capacity batteries for the energy storage market and high-cycle life products for the commercial vehicle market, avoiding a one-size-fits-all strategy.
Global resource integration
Global layout and international cooperation can help enterprises diversify risks and improve resource utilization efficiency. EVE's CLS model is a successful practice of this strategy.
Figure: Liu Jincheng, Chairman of EVE Lithium Energy: The lithium battery industry is developing benignly
Ⅴ Industry trends: energy storage and power at the same time, the rise of green energy
1. The explosion of the energy storage market
According to market forecasts, the global energy storage market will reach 1TWh in 2030, and EVE, as the world's leading supplier of energy storage batteries, will continue to maintain its growth advantage in this field.
2. Differentiation of the power battery market
With the gradual maturity of the new energy vehicle market, the demand structure of power batteries is also changing. High-end models have higher requirements for energy density and charging speed, while economy models are more concerned about cost control and cost performance.
EVE has achieved synergistic development in the two major markets of power and energy storage through differentiated product strategies.
Ⅵ Summary: Leading the future with innovation and rationality
The views of Liu Jincheng, chairman of EVE Lithium Energy, clearly convey the signal that the lithium battery industry has entered a stage of benign development. At this stage, enterprises need to avoid the risk of blindly following the trend through technological innovation, precise layout and rational competition, so as to occupy an active position in the global market.
EVE has set a benchmark for the industry through the high growth of energy storage business, the strategic adjustment of power batteries, and the continuous promotion of global layout. In the future, with the deepening of the global green energy transition, EVE is expected to play a more important role in the lithium battery industry and contribute to the global energy transformation.
