Lithium Ion Battery 4 accurate core materials

Lithium Ion Battery: 4 accurate core materials

China has abundant lithium resources and a complete Lithium Ion Battery industry chain, and is the world’s largest Lithium Ion Battery material and battery production base. In recent years, Lithium Ion Battery materials have grown rapidly due to the demand from new energy vehicles, consumer electronics and energy storage industries.

The applications of lithium-ion batteries are diverse and widespread, ranging from powering smartphones and laptops to electric vehicles and renewable energy storage systems.

Lithium Ion Battery is mainly composed of four key materials: positive electrode material, negative electrode material, separator and electrolyte, with cost proportions of 45%, 15%, 18% and 10% respectively.

Lithium Ion Battery Core Material:Cathode material

The cathode material accounts for the highest proportion of the total cost of Lithium Ion Battery, and its performance directly affects the core performance indicators of Lithium Ion Battery such as energy density, safety, and cycle life.Lithium-ion battery safety issues have prompted rigorous research and development efforts aimed at mitigating risks associated with overheating, short circuits, and potential thermal runaway events, particularly in high-energy applications such as electric vehicles and energy storage systems.

The cathode material serves as a source of lithium ions and also has a high electrode potential, giving the battery a high open circuit voltage.

According to the cathode material, Lithium Ion Battery can be divided into technical routes such as lithium cobalt oxide, lithium manganate, lithium iron phosphate and ternary materials.

The current cathode materials mainly maintain the parallel pattern of lithium iron phosphate and ternary materials.

The space for improving the energy density of ternary material batteries is much greater than that of lithium iron phosphate cathode materials, while iron phosphate Lithium Ion Battery has the advantages of lower cost and relative safety.

lithium-ion battery high energy density
lithium-ion battery high energy density

According to Baichuan Yingfu, China is expected to add a total of 1.625 million tons of new lithium iron phosphate production capacity in 2023.

From the perspective of market structure, China’s lithium iron phosphate industry is highly concentrated, with Hunan Yuneng and Defang Nano accounting for the largest share of production capacity, followed closely by manufacturers including Changzhou Lithium Source, Hubei Wanrun, Rongtong Hi-Tech, and Hunan Shenghua , Chongqing Terry and Guoxuan High-tech Power Energy, etc.

Ternary material refers to a cathode material composed of three elements: nickel, cobalt and manganese or three elements: nickel, cobalt and aluminum, namely lithium nickel cobalt manganate (NCM) or lithium nickel cobalt aluminate (NCA).

NCM ternary material is a ternary material mainly used by Chinese companies. Its advantage lies in energy density, and the higher the nickel content, the higher the specific capacity. It is widely used in new energy passenger vehicles. Due to its high cost, it is mainly used in mid- to high-end models.

High nickelization has a large market space in the future and is also a key direction for technology research and development and industrialization of various ternary cathode material manufacturers.

As of 2022, many cathode manufacturers have achieved shipments of ultra-high nickel products above 9 series.

The top three Chinese ternary materials manufacturers in terms of production capacity are Rongbai Technology, Beterui and Huayou Cobalt.

As of the end of October 2022, the production capacities of the above three companies were 150,000 tons, 83,000 tons and 80,000 tons respectively, accounting for 18.9%, 10.5% and 10.1% respectively, and CR3 was 39.5%. The ternary material production capacity of Tianjin Bamo and Dangsheng Technology is both 55,000 tons, accounting for 6.9%, and CR5 is 53.4%.

Lithium Ion Battery Core Material:Negative material

Research on negative electrode materials of lithium-ion battery
Research on negative electrode materials of lithium-ion battery

Anode materials are currently dominated by graphite materials and are being upgraded to silicon-based anode materials.

In the first half of 2022, artificial graphite anode material shipments accounted for 85%, and natural graphite anode materials accounted for 15%. This proportion is basically the same as the previous year.

Driven by market demand for power and energy storage, artificial graphite has better consistency and circulation than natural graphite, driving the proportion of artificial graphite to increase.

The market structure of anode materials is good, and the concentration has further increased. Among them, Beterui accounts for 26%, Shanshan shares account for 13%, CR3 reaches 50%, and CR6 reaches 76%.

Lithium Ion Battery Core Material:Diaphragm

The performance of the separator determines the interface structure and internal resistance of the Lithium Ion Battery, which directly affects the battery capacity.

The main function of the separator is to separate the positive and negative electrodes of the battery to prevent the two electrodes from contacting and causing a short circuit. In addition, it also has the function of allowing electrolyte ions to pass through.

China’s wet separator production process accounts for 75.12%, which is the mainstream production process.

From the perspective of market structure, Xingxingcha data shows that China’s diaphragm industry has a high degree of concentration, showing a situation of “one superpower and two strong ones”. The top three are Enjie, Xingyuan Materials, and Sinoma Technology, followed closely by ZTE Innovation, Hebei Jinli, Henan Huiqiang and other manufacturers.

Lithium Ion Battery Core Material:Electrolyte

EVTank statistics show that in 2022, global Lithium Ion Battery electrolyte shipments exceeded one million tons, reaching 1.043 million tons, a year-on-year increase of 70.4%. China’s electrolyte shipments increased by 75.7% year-on-year to 891,000 tons, and its share of global electrolyte increased to 85.4%.

The components of the electrolyte include organic solvents, lithium salts and solutes. Among them, the cost of lithium salt accounts for the largest proportion of the total cost of the electrolyte, which is 45%, and has a greater impact on the price of the electrolyte. The cost of solvents and additives account for 25% and 20% respectively.

From the perspective of the electrolyte market structure, there will be major changes in 2022 compared with 2021.

Tianci Materials’ industry-leading position has been further consolidated, with its market share increasing from 28.8% in 2021 to 35.9% in 2022. Cathay Huarong’s third position in the industry has been replaced by BYD. The competition between the four companies Kunlun Chemical, Sinochem Blue Sky, Farnright and Zhuhai Saiwei is in an intense state; the CR10 of China’s electrolyte industry will increase from 84.3% in 2021 to 88.3% in 2022.

Tianci Materials ranked first with a shipment volume of 320,000 tons. Companies with more than 100,000 tons also include Xinzhoubang and BYD, according to data from China’s Lithium Ion Battery Electrolyte Industry Development White Paper (2023). Eenko Tianrun, which has a foreign investment background, will rank among the top ten domestic electrolyte shipments in 2022, replacing Luoyang Dasheng, which was among the top ten companies in the industry in 2021.

EVTank’s statistics in the white paper show that according to the current production expansion plans of major companies, the planned production capacity of Chinese electrolyte companies will exceed 8 million tons by 2025. And as a large number of upstream companies in the industry chain, including Shi Dashenghua and Yongtai Technology, enter the electrolyte field on a large scale in 2022, competition in the electrolyte industry will become more intense.、

Understanding the specific composition of lithium-ion batteries is crucial for optimizing their performance and addressing challenges related to materials sourcing, recycling, and overall sustainability within the energy storage industry.

lithium-ion battery long cycle life
lithium-ion battery long cycle life