Soaring lithium: 340 super projects with a total investment of over 950 billion yuan!

Under the crazy support of capital and ambition, it seems that China Lithium Industry is accelerating its rapid growth. 

According to TTIR statistics in 2024, by the end of June, 2024,340 super projects of 86 domestic listed lithium battery companies (the investment budget of a single project exceeds 100 million yuan) have entered the stage of implementation (construction). The total investment budget of these 340 projects exceeds 950 billion yuan, covering the whole lithium battery industry chain, including lithium battery manufacturing, upstream raw materials such as cobalt, lithium and nickel, anode and cathode materials, electrolytes, lithium battery separator and lithium battery copper foils.

Both the number of super projects and the total investment scale have increased to some extent compared to the "325 super projects with a total investment of more than 860 billion yuan" at the end of 2023.

In the current lithium battery industry, passion is burning like a flame; On the other hand, it is like an iceberg, cold and hard, which hides the unknown and contains great risks. 

The industrial cold wave is continuing to hit the whole lithium battery industry.

On the whole, according to TTIR statistics, the status quo of the lithium battery industry is really not optimistic: in the first half of 2024, the overall operating income of 121 lithium battery enterprises decreased by 14.33% year-on-year, and the growth rate decreased by 30.48 percentage points compared to the same period in 2023; The overall net profit attributable to the parent company decreased by 44.94% year-on-years; The advance payment of customer decreased by 9.16% year-on-year, and the growth rate decreased by 21.72 percentage points compared to the same period in 2023; The net operating cash flow also decreased by 24.04% year-on-year, and the growth rate decreased by 76.05 percentage points compared to the same period of last year; The scale of net funds raised decreased by 85.55% year-on-year, and the net asset value also decreased by 12.36%, and the growth rate was 80.43 percentage points lower than that of the same period in 2023. At present, most second - and third-tier manufacturers are almost loss-making, and many companies may not be able to survive this round of the reshuffle cycle.

In fact, under the impact of this fierce industrial cold wave, even industry giants are facing industrial pressure and even challenges. For example, in the first half of the year, the overall operating income of 12 leading lithium battery enterprises decreased by about 13.95% year-on-year (the growth rate in the same period of 2023 was 38.43%), among which overseas income decreased by 17.44% (the growth rate in the same period of 2023 was 94.99%); The advance payment of customer decreased by about 45% year-on-year (the growth rate in the same period of 2023 was 13.51%); The net profit attributable to the parent company decreased by 23.52% year-on-year (the growth rate in the same period of 2023 was 29.82%); The net financing (cash flow) decreased by 113.26% year-on-year. 

Now, as the "14th Five Year Plan" reaches its final game, China and even the global lithium battery industry have entered a new period of development. With the crazy influx of capital and the comprehensive development of integration and international competition, it can be foreseen that the competition and game around the dominance and pricing of global new energy, whether at the enterprise or national level, may further escalate in the future. All of this seems to indicate that a great war is about to break out, and the remaining will be the king!

Based on the latest development trends and changes in the comprehensive industry, the global lithium battery market will inevitably engage in a new round of competition in the future around multiple dimensions such as new technologies, new production capacity, new capital, and globalization. The success or failure of competition will have a profound impact on the global lithium battery industry pattern and development, and we will wait and see.