1. With the rapid development of new energy vehicles and energy storage industry, the lithium battery industry chain has a broad market space
Under the situation of increasingly serious global resource and environmental problems, China, the EU, the United States and other major countries and regions in the world have gradually formulated and promulgated relevant policies and regulations conducive to the development of the new energy industry, gradually increased the market share of new energy vehicles, accelerated the energy transformation, and built a clean and low-carbon energy system.
Under the wave of world automobile electrification, domestic and foreign mainstream automobile enterprises have increased the strategic layout of new energy vehicles, and new energy vehicles with strong product strength are intensively listed. The new energy vehicle market has entered a market driven high-speed growth period. According to the data of China Association of Automobile Manufacturers, the sales volume of new energy vehicles in China will reach 3.521 million in 2021, an increase of 157.5% compared with 2020, and the market scale is expanding day by day; In 2022, the sales volume of domestic new energy passenger vehicles will reach 6.887 million, with a year-on-year growth of 93.4%, and the market share has reached 25.6%.
Mobile battery square case
With the increase of major global automobile enterprises in the field of new energy vehicles, the penetration rate of new energy vehicles has increased significantly, the demand for power batteries has been released rapidly, and the expansion process of global power battery manufacturers has been accelerated. Famous power battery enterprises at home and abroad, including CATL, Zhongchuangxin Aviation, LG, Yiwei Lithium Energy, have announced new production expansion plans, and the new capacity and investment scale have significantly increased. The rapid growth of demand for expansion of power lithium battery further drives a new round of supporting expansion of lithium battery supply chain. In addition, the continuous progress of lithium battery technology and the large-scale development of 4680 cylindrical batteries, Kirin batteries and other emerging products will not only put forward new requirements for the lithium battery supply chain, but also generate new market space.
2. The company has strong market competitiveness in the field of power lithium battery precision structural parts
As one of the earliest domestic enterprises engaged in the research, development and production of precision structural parts for power lithium batteries, the company has stable large customer resources, significant scale advantages and rich experience in research, development and manufacturing of precision structural parts.
In terms of customer resources, the company has the most extensive customer base in the field of lithium battery precision structural parts, and has entered the supply chain system of most mainstream lithium battery manufacturers, including CATL, China Innovation Aviation, LG, Panasonic, Tesla, Northvolt, Samsung, Yiwei Lithium Energy, Xinwangda, Honeycomb Energy, Lishen and other world-famous power battery and automobile manufacturers. Relying on the good cooperation with downstream customers, the company has established a strong brand influence and high international popularity. Under the background of the rapid development of new energy vehicles, the company shares the opportunities and growth brought by the booming development of downstream industries with customers.
In terms of production capacity, the company is close to the location of major customers in the power lithium battery industry, and has built production bases in key areas of the lithium battery industry such as East China, North China, South China, Northeast and Northwest China. In the future, with the gradual release of new capacity, it will effectively radiate downstream customers around and respond to customer needs in a timely manner.
In terms of R&D and manufacturing capacity, the company has high precision and consistency production processes, and advanced stamping processing, stretching processing, injection molding processing and mold manufacturing technologies. It also continues to research and develop related products and its own technology relying on the increasingly perfect R&D platform, and gradually improves the automatic production capacity, and accelerates the upgrading of terminal products Under the market environment with increasingly rich product models, we can provide customers with fast customized product services by virtue of strong mold technology and excellent precision manufacturing capability.
（2） Necessity of project construction
1. The global new energy vehicle market is growing at a high speed, driving the downstream demand to continue to rise
Under the situation of increasingly serious global resource and environmental problems, China, the EU, the United States and other major countries and regions in the world have gradually formulated and promulgated relevant policies and regulations conducive to the development of the new energy industry, gradually increased the market share of new energy vehicles, accelerated the energy transformation, and built a clean and low-carbon energy system. Among them, China announced that "carbon dioxide emissions will strive to reach the peak by 2030, and strive to achieve carbon neutrality by 2060"; The European Union and the United States proposed to achieve net zero greenhouse gas emissions by 2050. In addition, major economies around the world have generally introduced specific subsidies and preferential policies to vigorously support the production and sales of new energy vehicles.
Under the wave of world automobile electrification, domestic and foreign mainstream automobile enterprises have increased the strategic layout of new energy vehicles, and new energy vehicles with strong product strength are intensively listed. According to the data of China Association of Automobile Manufacturers, the sales volume of new energy vehicles in China will reach 3.521 million in 2021, an increase of 157.5% compared with 2020, and the market scale is expanding day by day; In 2022, the sales volume of domestic new energy passenger vehicles will reach 6.887 million, with a year-on-year growth of 93.4%, and the market share has reached 25.6%.
The rapid growth of new energy vehicle sales has driven the rapid increase of power battery shipments. According to the statistics of Gaogong Lithium Battery, the shipment of power lithium batteries in China will reach 220GWh in 2021, an increase of 175% compared with 2020. According to the forecast released by Gaogong Lithium Battery in January 2022, the global power battery shipment will reach 1550GWh in 2025 and is expected to reach 3000GWh in 2030.
After years of development, the company has become a leading provider of lithium battery precision structural parts in China. With the rapid development of the downstream industry, downstream customers have put forward new requirements for the company's production capacity. As one of the main materials of lithium battery, the stable supply of precision structural parts has an important impact on the development of new energy industry. Through the construction of the above raised projects, the company can effectively alleviate the capacity shortage in the future, prepare for the growing order demand of customers, and also implement the national strategic goal of "carbon neutrality, carbon peak", to provide the supply guarantee of upstream lithium battery materials for the development of China's new energy automobile industry.
2. Comply with market demand, expand production capacity and give play to scale effect to maintain the leading position in the industry
As the market demand of the power lithium battery precision structure industry continues to increase, the market scale continues to expand, new entrants to the industry have strong investment intentions, and the industry competition increases. However, the investment in a single set of production equipment for precision structural parts is huge, which has high requirements for the early capital investment of companies in the industry. New entrants are generally difficult to accumulate huge funds in a short time to invest in production equipment and working capital. Having high-quality and stable production capacity is an important prerequisite for enterprises to undertake large-scale orders from downstream customers, and also an important guarantee for companies to constantly develop new markets. Manufacturers with capacity advantages can continuously deepen cooperation with important customers, which is conducive to further improving market share.
