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At present, lithium-ion battery manufacturers have become the preferred choice for most large-scale fixed energy storage project developers, as well as in fields such as electric vehicles, consumer electronics, and portable electronics, with increasingly fierce competition. The most successful companies among them are mostly large enterprises with specialized businesses that provide lithium batteries for consumers' electronic products and electric vehicles.
According to Navigant Research's forecast, by 2026, the market size of fixed battery energy storage will approach 29GW, and the market for fixed lithium-ion energy storage will increase from $2.9 billion in 2017 to over $23.1 billion. Driven by changes in regulatory rules and the introduction of subsidy policies, the rapidly growing markets for lithium batteries are mainly concentrated in North America, Europe, and the Asia Pacific region. With the development of the lithium battery manufacturing industry, the most critical challenge around providing low-cost, high-performance battery systems is the safety and extension of battery life, which are also the two weak points of lithium batteries compared to other energy storage technologies.
Based on the above background, Navigant Research conducted a study on the prospects of lithium battery companies in the current fixed energy storage market, analyzed the advantages and disadvantages of several major lithium battery companies in this field, selected six indicators from the strategic and execution levels, quantified them, and ranked each company according to their final scores.
The lithium battery companies in this list do not include: companies that do not produce lithium-ion batteries (including companies that outsource battery manufacturing to other companies, as well as companies that assemble, package, and integrate systems), companies that do not have specialized business departments for grid level energy storage applications, companies that do not provide battery cells or modules to at least two countries, and companies that are currently in bankruptcy proceedings or undergoing asset liquidation.
This competitive landscape report mainly evaluates mainstream players in the lithium-ion battery industry based on 12 criteria, as follows:
01. Strategic level
1. Vision, which measures a company's established goal of designing market solutions based on actual customer needs, enables effective communication with customers, and enterprises with clear and convincing visions can achieve higher scores;
2. Go to Market Strategy, evaluating the company's strategy to reach the target market, including the sales and marketing channels utilized, as well as the process of creating brand differentiation and unique product value for the target market;
3. Partners, measuring the partnerships established between the company and important organizations, relationships with well-known energy storage project developers, and relationships established with other suppliers in the supply chain;
4. Production Strategy, evaluating the long-term competitiveness of production plans as an effective solution to meet market demand, including assessing the manufacturing capability of enterprises to provide products that meet market expectations and demands and meet quality requirements;
5. Technology, evaluating whether the enterprise has independently developed technology or has technology patents;
02. Execution level
1.Sales, Marketing,andDistribution, Evaluate the company's market and sales performance, as well as its current distribution channels. Enterprises with high market share will receive higher scores;
2. Product Performance, evaluating the competitiveness of energy storage system performance;
3. Product Quality and Reliability, evaluating the quality and reliability of energy storage systems delivered to customers, the company's strategy for developing high-quality products for the market, and its record of quality in the current product line;
4. Product Portfolio, addressing the relative competitiveness of products in the market and their applicability to the market. Enterprises with unique designs and the ability to meet specific needs of the target market can receive higher scores;
5. Pricing, determining the appropriateness of pricing based on product characteristics, whether there are multiple price options available, and how to price compared to competitors' products;
6. StayinPower evaluates whether the company has the financial resources to withstand market and price shocks from competitors. In addition, in the event of a weak market, measures the possibility of the company continuing to promote battery products. Enterprises with strong financial resources and the ability to survive in market downturns will receive high scores.
This list evaluates the strategies and execution of 10 major lithium-ion battery manufacturers. Navigant Research conducted a horizontal and vertical axis analysis (strategy and execution) on these top 10 companies. Here are the top 10 lithium-ion battery companies of this year:
1. LG Chem
2. Samsung SDI
3. BYD
4. Panasonic
5. Kokam, South Korea
6. Toshiba
7. Saft
8. Leclanch é, Switzerland
9. Electrovaya Canada
10. CATL (Contemporary Amperex Technology)
Navigant Research also categorizes this year's top 10 mainstream players into four types: leaders, competitors, challengers, and followers. Among them, LGChem and Samsung SDI have performed exceptionally well in both strategy and execution, being listed as Leaders. They are both multinational corporations specializing in lithium battery energy storage business, providing competitive products, deploying dozens of profitable systems, and having the financial resources to provide guarantees for competition. At the same time, they also have system integration capabilities, directly supporting their lithium battery energy storage business. Navigant Research believes that these two companies will lead the development of current and next-generation lithium batteries in the coming years. BYD, Panasonic, Kokam, Toshiba, Saft, Leclanch é and other six companies have been included in the second category of Contenders, demonstrating the persistence required in the competitive market while possessing significant financial resources for future investments. Electrovaya and CATL are classified as the third type of Challenger, adopting different strategies to gain market share.
In recent years, lithium-ion batteries have been the preferred technology for solid-state storage projects. Due to its combination of low cost, energy density, efficiency, and safety, this technology has become the preferred choice for many developers of fixed energy storage systems (ESS).
Lithium ion batteries have also driven the energy storage market for electric vehicles and consumer electronics products. The rapid growth of these markets enables suppliers to develop economies of scale by making significant investments in new production facilities that lower prices.
The global market competition among lithium-ion manufacturers is becoming increasingly fierce, with companies vying for market share and investing heavily in manufacturing and research and development.
So far, the most successful companies targeting the fixed battery energy storage market are some large enterprises with mature businesses that provide lithium-ion batteries for electric vehicles and consumer electronics products.
LG Chem - the world's largest lithium battery supplier
Among the top 20 global automotive brands, LG Chem has partnered with 13 of them, regardless of production capacity. In terms of the number of cooperating manufacturers alone, LG Chem has become the world's "largest" supplier of lithium batteries for automobiles.
Among competitors such as Panasonic and AESC, LG Chem is the only battery company based on chemicals and materials.
Recently, LG Chem announced the design of lithium-ion battery modules and the creation of battery packs for Mahindra Electric, which will be used in the products of Mahindra Group and other customers.
Samsung SDI
Samsung's third-generation power battery has an energy density of 550Wh/L, equivalent to 210-230Wh/kg, and has achieved mass production. The energy density of the next generation 3.5 product can reach 630wh/L, and it is expected to be mass-produced in 2019. In the field of power batteries, Samsung has been increasing its investment in fast charging technology.
BYD
BYD's technology mainly focuses on lithium iron phosphate batteries, but in recent years, it has also made large-scale investments in ternary power batteries, achieving a leading position.
Panasonic
The power lithium-ion batteries provided by Panasonic perform extremely well in terms of energy density, cycle stability, and batch repeatability, and even Tesla has chosen Panasonic batteries. Last October, Panasonic announced the expansion and renovation of its Himeji production plant in western Japan, further expanding Japan's lithium-ion battery production capacity.
Kokam, South Korea
In 2016, it signed an agreement with South Korea's largest utility power company to develop a 36MW power storage system. The purpose is to adjust the frequency of Non Gong substation in South Korea. By the end of 2017, Kokam had also installed a 500MW energy storage system. The system will utilize Kokam's two lithium-ion battery technologies: ultra-high power nickel manganese cobalt battery and nano battery technology.
Toshiba
In January of this year, Toshiba officially announced that it had successfully developed a new generation of lithium-ion batteries for vehicles (referred to as SCiB), which Toshiba called the "super fast charging battery". Test data shows that this new type of lithium-ion battery can charge for 6 minutes and travel 320 kilometers.
saft
Shuai Fude from Zhuhai, China is a world leading designer, developer, and manufacturer of advanced high-tech industrial batteries. Its lithium-ion battery system is widely used in many end markets such as civilian and specialty industries. In addition, SAFT is a world-class expert in lithium-ion satellite batteries and provides lithium-ion batteries for new technologies in clean energy transportation and renewable energy storage.
Leclanch é, Switzerland
Leclanch é is a well-known Swiss battery manufacturer with over a century of history in battery research and production. Leclanch é also installs batteries into modules and systems. Last October, it also joined the EU to launch the Battery Industry Alliance.
Electrovaya Canada
Designed, developed, and manufactured patented lithium-ion batteries, and delivered the next generation battery pack to Dongfeng with a capacity increase of approximately 20%. In 2015, Electrovaya's market value increased more than fivefold.
CATL (Contemporary Amperex Technology)
The good achievements of CATL are closely related to the development of new energy vehicles. On November 10, 2017, CATL released its initial public offering prospectus.
Navigant Research points out that although several market barriers may limit growth in the short term, the size and potential of the lithium-ion industry should not be underestimated, and it is expected to exceed $23.1 billion by 2026.
In terms of leading the market, market growth will mainly be distributed in North America, Europe, and Asia. Driven by regulatory changes and incentive measures, the prices of lithium-ion batteries in these regions will drop enough to compete with retail electricity prices.
Giant Lithium Battery - Customized Special Lithium Battery Power System NO.1
Establishment time: 2002 Headquarters: Dongguan, Guangdong
Dongguan Juda Electronics Co., Ltd. was established in 2002. It is a national high-tech enterprise and special qualification enterprise that integrates independent research and development, production, and sales of lithium-ion battery modules. Since its establishment, the company has always been committed to serving global users of special power supplies, power storage batteries, industrial power supplies, and consumer power supplies. After 16 years of development, it has grown into a leading global provider of customized lithium battery solutions and products.
The company is committed to continuously improving its ability to conduct in-depth customized research and development for users with special environments, special performance, and special requirements. Its existing customized lithium battery solutions and products are widely used in fields such as special aerospace, missile borne shipborne equipment, special special, special, high-energy physics, railway infrastructure, public safety, power communication, medical electronics, commercial finance, security communication, transportation logistics, exploration and mapping, photovoltaic energy storage, and 3C consumer electronics. It also collaborates with aerospace science and industry, aerospace technology, special, special, China Ordnance Engineering Corporation, China Electronics Technology Group Corporation, China Electronics Technology Group, Chinese Academy of Sciences, Chinese Academy of Military Sciences, Motorola, Toshiba, Fujitsu, Walta, Foxconn, Lenovo, Changhong, Jiuzhou, Hikvision, Mindray Medical, etc. Numerous respected users have established comprehensive, long-term, and in-depth strategic partnerships.
The lithium battery industry is still a growth industry, and some domestic lithium battery manufacturers ranked in the middle have good income and asset growth. The top ranked lithium battery manufacturers have performed well in terms of business performance, corporate governance, and brand, and have great potential for future growth. However, the relative ranking of domestic lithium battery manufacturers is not stable, and the opportunities for latecomers to surpass them due to rapid technological progress are open and equal.
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