South Korean Media: Chinese Battery Firms See Explosive Profit Growth!

On July 17, South Korean media outlet Newspim published an article stating that data shows China's battery industry has demonstrated significant growth momentum in the first half of this year.

Leading Chinese battery manufacturer Everen Lithium announced it expects net profit for the first half of this year to reach between 3.1 billion and 3.3 billion RMB. This figure represents a year-on-year increase of 95% to 110% compared to the same period last year.

In its announcement, Everen Lithium pointed out that the major reason behind the substantial profit growth is cost savings achieved through product upgrades and supply chain diversification. As a result, the company’s net profit growth rate has exceeded its sales growth rate for the first half of the year (60%).

Analysts believe such strong performance may be a widespread phenomenon across the entire industry.

In the first quarter of this year, China's battery sector also showed robust growth. Everen Lithium’s net profit increased by 31.35% compared to the same period last year.

As China’s largest battery manufacturer, CATL saw its sales grow by 52.4% and net profit rise by 48.5% in the first quarter of this year.

China’s lithium producer Ganfeng Lithium reported a 143.8% increase in sales during the first quarter, with its net profit turning from loss to profit.

Data shows that cumulative battery sales in China reached 783.4 GWh in May this year, up 48.5% year-on-year. Among them, batteries for electric vehicles amounted to 527.9 GWh, accounting for 67.4% of total sales, a year-on-year increase of 34.9%. Battery sales for energy storage systems reached 255.5 GWh, making up 32.6% of total sales, with a staggering growth rate of 87.7%.

Based on cumulative battery sales data for May, CATL ranked first with a market share of 47.0%; BYD followed in second place with 16.7%; Gotion High-Tech ranked third with 6.1%; Contemporary Amperex Technology Co. Limited (CATL) came fourth with 5.9%; while Everen Lithium secured fifth place with 4.7%.

Moreover, as of June, the combined production plan for battery cells among the six major manufacturers totaled approximately 175.7 GWh, representing a year-on-year increase of 68% and a month-on-month increase of 6%.

Analysts point out that sustained growth in demand for energy storage equipment, expanding exports of electric vehicles, and increasing battery counts per vehicle in the domestic market are collectively driving continued high-speed growth in battery demand.

Original source: toutiao.com/article/1870927185921097/

Disclaimer: The views expressed in this article are solely those of the author.