CATL/Guoxuan/Yiwei doubles overseas performance in 2021

The strong demand for overseas power batteries and energy storage is becoming an important growth pole for the performance of domestic power battery companies.

Recently, power battery companies have disclosed their 2021 performance reports one after another. GaoGong Lithium noted that Ningde Time, Guoxuan High Tech and Yiwei LiNeng's overseas revenue doubled last year, with a year-on-year growth rate of 1.2 to 2.5 times, and some overseas revenue has exceeded the domestic market.

Specifically, Ningde Times 2021 overseas battery exports exceeded 27.8 billion yuan, 3.5 times more than 7.91 billion yuan in the same period of 2020, an increase of 252.47% year-on-year, the revenue ratio also increased by nearly 6 percentage points to 21.38%.

Lithium EVEREST last year with 8.611 billion yuan of overseas revenue for the first time over the domestic market, revenue accounted for 50.96%, an increase of 123.65%; Guoxuan High-tech last year overseas revenue of 528 million yuan, the data 2020 the same period of 3.3 times, a year-on-year high growth of 232.58%. 

In terms of gross margin, 2021 by the impact of raw material price increases, power battery companies at home and abroad gross margin have declined to varying degrees. For example, the gross margin outside of EVERLIGHT fell 11.72% year-on-year, and the domestic gross margin of Guoxuan High-tech fell 8.2%. 

In contrast, Ningde Times and Guoxuan High Tech's overseas gross margin exceeded that of the domestic market, with China Xuan High Tech's overseas gross margin of 36.62%, 20 percentage points higher than that of the domestic business.

Battery companies overseas business climbed sharply as a direct result of the climb in overseas demand for new energy vehicles and energy storage, and the globalization layout of Chinese power battery companies entered the performance cashing period. 

Customs data show that China exported 3.428 billion lithium batteries in 2021, up 54.34% year-on-year; the export value expanded to $28.428 billion (about RMB 187.3 billion), up 78.34% year-on-year. 2022 Overseas market enthusiasm continued to extend, with China's lithium battery exports up 53.7% year-on-year in 2022Q1, including exports to the EU of lithium batteries and other New energy products grew by 66.2% year-on-year.

The logic, on the one hand, the development of new energy vehicles overseas is on the rise, becoming the next big battlefield for Chinese power battery companies to compete. With huge overseas orders or projects in hand, the overseas performance of Chinese power battery companies has entered a period of steady cash. 

Data show that the market for new energy vehicles in Europe in 2021 continues to grow sales of 2.338 million units, an increase of 66% year-on-year; and the market penetration rate of new energy vehicles in Europe in 2021 reached 16.5%, higher than China's 13.4%. At the same time, the United States new energy vehicle sales of the big exceeded expectations, 2021 sales of 670,000 units, a year-on-year growth of more than 100%.

On the other hand, the United States, Germany, Australia, Japan and other overseas energy storage market high boom continues, the domestic battery companies overseas energy storage business advantages highlighted, one after another to take overseas energy storage project supply contracts.

GGII data, 2021 global energy storage lithium battery shipments of 70GWh, an increase of 159%. Among them, China's energy storage lithium battery shipments accounted for nearly 70%, reaching 48GWh, and domestic energy storage battery shipments are expected to exceed 90GWh in 2022, an increase of 88% year-on-year. 

New energy vehicles overlaid with energy storage two-wheel drive, overseas market cake is pleasing. Aiming at this, Chinese power battery companies have continued to drive their globalization and development by internationalizing customers, internationalizing production capacity, internationalizing technology, and overlaying zero-carbon transformation deployment of product production. 

Ningde Times' overseas business has climbed significantly, on the one hand, it has increased cooperation with Ford, Fisker, Hyundai, Volkswagen, Daimler Trucks, Tesla, BMW, ELMS and other international car companies since 2021, and the speed of international supply of power batteries and the speed of overseas capacity release are at the front of the industry. 

Overseas has been an important battlefield for its energy storage business. in March 2019, Ningde Times signed a contract with Powin Energy, a U.S. energy storage plant, for the supply of 1.85 GWh of energy storage battery cells. in 2021, it delivered 220 MWh of lithium battery energy storage systems to Hill Country, Ks. 

The latest news is that Ningde Times recently received a large order for 900MWh of battery storage systems from Broad Reach Power, an independent power producer in the US. 

Last year, Yeastar exported 541 million lithium batteries, mainly to Europe, Asia, North America and other regions. The overseas business is mainly due to the rapid growth of its overseas sales of soft pack ternary batteries, and its ternary soft pack 10GWh capacity is full production and full sales. At the same time, its 48V system has received Jaguar Land Rover project, BMW, Bosch, Daimler project supplier fixed point. 

In the field of energy storage, EVERLIGHT signed a two-year 1GWh LFP battery purchase order with U.S. system integrator Powin last year. Meanwhile, its LF280K energy storage cells have obtained UL9540A test report, helping it to better develop the international energy storage market, especially the North American grid-level application market. 

In 2021, CXG achieved a major breakthrough in the international market, targeting a number of high quality overseas customers, establishing long-term strategic partnerships and successfully providing support for a number of overseas mainstream car companies. 

Last December, its U.S. subsidiary signed a strategic supply and localization agreement with a large U.S. listed automotive company, which is expected to purchase a total of no less than 200 GWh of LFP batteries from 2023 to 2028; cooperated with Vietnam Vinfast in R&D and production of LFP batteries and discussed the possibility of establishing a Giga plant in Vietnam; through the acquisition of Bosch's plant in Göttingen, Germany In addition, Guoxuan Hi-Tech is actively pursuing the development and production of LFP batteries. 

In addition, Guoxuan High Tech is actively pursuing plans for a Swiss IPO. Its internationalization strategy is to: 1) increase the construction of power battery production capacity and supporting industries in Europe, North America, Asia and other overseas markets; 2) attract excellent R&D technicians and management teams from overseas to create excellent localization teams; 3) improve the company's global industrial chain R&D system and accelerate the pace of R&D industrialization. 

An obvious feeling is that the overseas production capacity construction of Chinese power battery enterprises represented by Ningde Time, Vision Power, Honeycomb Energy, Fu Energy Technology and Guoxuan Hi-Tech has entered a substantial stage of promotion, and overseas business is becoming a new battlefield for Chinese power battery enterprises to compete. 

For example, Ningde Times Thuringia base is expected to realize 14GWh power battery capacity in 2022; Vision Power plans to add three new power battery super factories in France, UK and US; Hive Energy lands in Saarland, Germany, and builds two factories for cells and module PACK; Guoxuan Hi-Tech acquires Bosch Group's factory in Göttingen, Germany, and establishes a European production and operation base; EVERLIGHT purchases target properties and builds a power battery manufacturing factory in Hungary to establish a power battery manufacturing plant ......