Is the stability of lithium-ion batteries sustainable? Will the power battery sector experience a turnaround this year?
On April 25, 2025, at 18:40, the South Finance and Economics Network reported that despite the recent decline in the lithium-ion battery industry, the overall performance remains relatively stable. However, compared to the previous peak years, the performance of the sector appears to be less remarkable.
Recently, the lithium-ion battery manufacturers released their financial reports for the 2024 and first quarter of 2025. These reports indicated that in 2024, the lithium-ion battery sector is expected to achieve a revenue of ¥486.15 billion, which is a slight decrease of 0.35% year-on-year. Additionally, the gross profit is projected to be ¥40.76 billion, reflecting a year-on-year increase of 0.63%. In the first quarter of this year, the sector is anticipated to generate a revenue of ¥127.96 billion, while the gross profit is expected to reach ¥8.18 billion, representing a year-on-year growth of 16.6%.
Moreover, the production volume of power batteries is expected to continue growing. The sales of power batteries are projected to rise significantly, although the revenue and profit margins may not keep pace with the growth in production. In response to these challenges, lithium-ion battery manufacturers are focusing on enhancing production efficiency and reducing costs.
Looking ahead to 2024, the manufacturers are expected to prioritize achieving production and sales targets while improving market share, which aligns with their operational goals. Performance in terms of average pricing has shown some difficulty, with prices already exceeding 70% of their peak levels. As of April 25, the average price was ¥41.23, significantly below the peak market value of ¥843.45 billion.
From a competitive standpoint, the lithium-ion battery sector is categorized into three segments: power batteries, energy storage batteries, and low-cost batteries. By the end of 2024, the revenue contribution from power batteries is expected to be around 39.43%, while energy storage batteries are projected at 39.14%, with low-cost batteries contributing about 21.23%.
This year, the first quarter saw the production of power batteries reach 10.17 GWh, reflecting a significant year-on-year increase of 57.58%. In subsequent quarters, the sector is expected to continue to lead in domestic electric vehicle (EV) production, with a steady increase in supply levels.
Furthermore, manufacturers are accelerating the deployment of new models and expanding their market reach in the electric vehicle segment, with expectations of continued growth in consumer demand.
By 2024, the sector aims to produce approximately 50 GWh of energy storage batteries, with substantial increases expected in subsequent years. The anticipated production capacity for 2025 could reach around 20 GWh, indicating a robust growth trajectory.
In summary, the lithium-ion battery industry is navigating through a transitional phase with varying growth rates across segments. While there are challenges faced in terms of pricing and market dynamics, the outlook for the coming years remains positive, supported by ongoing technological advancements and increasing demand for electric vehicles.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/the-stability-of-electric-vehicle-batteries-can-they-turn-the-tide-this-year/
