company news about In the future, the new energy vehicle market is still rising, and the installed capacity of iron lithium battery is gradually recovering

Although the sales volume of new energy vehicles in January this year decreased month on month, the increase was obvious compared with the beginning of previous years. It is expected that the Spring Festival in February will lead to a slight decrease in month on month, and the market will gradually recover in March. In addition, the production capacity of Tesla Model y is gradually climbing to meet the needs of consumers. BYD launched new plug-in hybrid models Qin and Tang in March to boost market demand. With the support of local policies, the production and sales of new energy vehicles in the future are still optimistic.

According to the data of China Automobile Association, in January 2021, the production and sales of new energy vehicles were 194000 and 179000 respectively, with a month on month decrease of 17.8% and 27.8% respectively, and a year-on-year increase of 285.8% and 238.5% respectively. New energy vehicles have set a new monthly sales record for seven consecutive months.

The month on month decline in January was basically similar to that in previous years. After the 20% decline in subsidies for new energy vehicles was determined in 2021, there was a rush buying behavior at the end of December in the market. In addition, due to the epidemic situation at the beginning of this year, many consumers also reduced their desire to buy new cars in the new year. Compared with the previous year's data, the month on month decline in January this year is relatively small, and the growth trend of new energy vehicle sales this year is still in progress.

According to the analysis of China Automobile Association, there are two reasons for the year-on-year growth of production and sales in this month. One is that the current market demand is still recovering. The other is that the Spring Festival holiday in 2020 is in January. In addition, the impact of the epidemic situation at the beginning of last year, so the base level is low. From the point of view of the month on month comparison, the decline rate of production is relatively fast, which reflects that the shortage of automobile chip supply affects the production rhythm of enterprises.

According to the installed power battery data of China automotive power battery industry innovation alliance, in January, the output of power battery industry was 12.0gwh, an increase of 317.2% over the same period last year, and a month on month decline of 20.4%. The output of ternary lithium battery was 6.8gwh, accounting for 56.8% of the total output, an increase of 241.6% over the same period last year; the output of lithium iron phosphate battery was 5.2gwh, accounting for 43.1% of the total output, an increase of 493.6% over the same period last year. In January, the output of battery enterprises decreased mainly due to the approach to the Spring Festival, the weakening of downstream market demand, and the shortage of battery materials.

In January, China's installed capacity of power batteries was 8.7gwh, up 273.9% year on year and down 33.1% month on month. The installed capacity of ternary lithium battery was 5.4gwh, with a year-on-year growth of 241.9%; the installed capacity of lithium iron phosphate battery was 3.3gwh, with a year-on-year growth of 349.8%. The month on month decline in installed capacity in January was mainly caused by the decline in production of automobile enterprises. In January, the installed capacity of Ferro lithium decreased by 52.8% on a month on month basis, which was much higher than that of ternary battery. This was mainly due to the year-end rush loading strategy adopted by new energy commercial vehicles in December last year, which led to a substantial increase in the installed capacity of Ferro lithium in December and exceeded ternary battery. In January, the installed capacity of new energy commercial vehicles decreased significantly, while that of new energy passenger vehicles decreased slightly. New energy commercial vehicles are mainly equipped with lithium iron batteries, while passenger vehicles with ternary batteries account for a higher proportion.