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Excess production has become a fact

Although the development prospects of the lithium battery industry are promising, it is now a fact that there is a serious overcapacity in production, and the overall gross profit margin of the industry chain has decreased. At the same time, there are so many new projects and new production volumes emerging.

Lithium battery material manufacturers are being squeezed by international material manufacturers on the one hand, and on the other hand, they are also facing price disorder competition caused by overcapacity. Among them, lithium iron phosphate materials are particularly severe, with production utilization rates only below 10%. "Zhang Xiaofei, President of Gaogong Lithium Battery, once said.

According to statistics from the Great Wisdom News Agency, in 2012, China consumed 3000 tons of lithium hexafluorophosphate (electrolyte), accounting for less than 10% of the existing domestic production; In 2012, there were approximately 195 domestic cathode material companies, of which nearly 30 were in a state of shutdown; In 2012, the shipment volume of negative electrode materials was about 28000 tons, with a production utilization rate of about 50%; In 2012, the total production of domestic lithium battery separator companies was 180 million square meters, and the actual production utilization rate was about 25% (currently, the domestic separator production is nearly 800 million square meters).

How to prevent further excess production caused by low-level repetitive construction is the key. The founder/CEO of China Battery Network, Yu Qingjiao, stated that although lithium battery materials are currently being developed in China, the ultimate solution is still to move towards mid to high-end products.

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