New Energy does not need to look up at around 30 battery factories or go bankrupt

For automation and robotics companies, the 3C electronics and new energy sectors have become two of the most talked-about and strategically important industries. Especially with national policies and local government support, the new energy power battery industry has gained significant attention. Within this sector, automation firms have increasingly focused on both large and small battery manufacturers. However, those who are deeply involved in the industry are becoming more aware of the intense competition that is now intensifying. A wave of consolidation is approaching, with reports indicating that around 30 battery factories may be shut down this year. It's an inevitable trend for the industry to undergo a shake-up. This year, the battery industry is experiencing a mix of growth and challenges. On one hand, policies like the "Dual Integration" initiative and the planned ban on fuel vehicles have shown the government’s strong commitment to developing new energy solutions, giving hope to the power battery sector. On the other hand, overcapacity, rising raw material costs, and downward pricing pressures have created real pain points for many companies. Looking at the lithium battery market this year, there are two clear shifts: first, under the surge of investment and expansion, mergers and acquisitions have intensified competition among top players. Second, the application of ternary lithium batteries has significantly expanded in the power battery field. According to statistics from early 2016 to mid-2017, out of 143 investment projects in lithium batteries and their upstream materials, 123 announced total investments amounting to 230.7 billion yuan. Among 63 restructuring projects, 60 announced transaction amounts totaling 130.6 billion yuan. As the industry expands, reports of overcapacity and increased competition continue to surface. Companies like Ningde Era have gone public, while SAIC, Dongfeng, and Changan have launched joint ventures. Their valuations have surged past 100 billion yuan. BYD, with a market cap exceeding 100 billion yuan, has also begun restructuring its battery division, aiming to commercialize its operations and accelerate international expansion, including building the largest electric bus factory in the U.S. Lishen Battery set a "Double 10 Billion" goal in 2017, targeting over 10 billion yuan in production capacity and sales. BAK Battery recently announced a 14.3 billion yuan investment to build an industrial park in Shandong. The overcapacity resulting from production expansion and the ongoing industry reshuffle are accelerating. According to industry sources, the cumulative installed capacity of lithium batteries in the first 10 months of this year reached 18.1 GWh, up 31.43% year-on-year. With 76 battery manufacturers having effective installed capacity, the number is expected to reach around 80 by the end of the year. Last year, there were 109 such companies, meaning about 30 battery factories could go bankrupt this year, signaling the start of a full-scale industry shake-up. Industry insiders see this as a result of market-driven frenzy. As of the third quarter this year, the total capacity of the top 20 Chinese power battery companies reached 102.2 GWh, far exceeding the actual installed capacity, making overcapacity undeniable. “In the future, only a few companies will remain in the automotive power battery industry,” they say.

Octagonal Pole

Octagonal Pole,Octagonal Street Light Pole,Octagonal Steel Pole,Octagonal Steel Electric Pole

JIANGSU XINJINLEI STEEL INDUSTRY CO.,LTD , https://www.chinasteelpole.com