What is the market prospect of assembling lithium batteries?

The future prospect of the lithium battery module market is positive.

1. Market development trend: According to GGII forecast, the price of main links in the lithium battery industry chain will drop by 5- 15% in 2024, which will further reduce the cost of lithium batteries. The decrease in the prices of raw materials and spare parts will lead to a decrease of 5- 10% in the battery cost, and a decrease of 0.03-0.06 yuan /Wh in the lithium battery cost on the existing basis.

2. Market competition: In China, Contemporary Ampere Technology Co., Ltd., BYD and Zhongchuang Singapore Airlines are the leading enterprises in the power lithium battery industry, accounting for more than 5% of the market share. The concentration of CR5 in power battery market will exceed 90%, and that in energy storage battery market will exceed 72%. This means that although the market prospect is promising, the competitive pressure will also increase.

3. Market challenges: Although the market prospect is optimistic, there are also some challenges. For example, in 2024, China's lithium battery industry chain will face severe challenges in capacity utilization, and it is estimated that the effective capacity utilization rate will be lower than 60%, especially in the power battery market.