Lithium battery refers to a battery composed of lithium storage compounds as positive and negative electrode materials. When the battery is in operation, lithium ions exchange between the positive and negative electrodes through a separator, thus achieving the charging and discharging processes. Due to its high specific energy, long service life, and light weight, lithium batteries have become one of the most mainstream energy storage methods, widely used in various application fields such as new energy vehicles, energy storage, and 3C products. Lithium batteries are mainly composed of four key materials: positive electrode material, separator, electrolyte, and negative electrode material.

Lithium battery equipment is the foundation of lithium battery production, and the production process of lithium batteries is complex. The entire production process involves more than 30 processes and requires multiple equipment to complete. Therefore, the performance level and operation status of lithium battery equipment directly affect the performance and quality of lithium batteries, which is one of the key factors determining the quality of lithium batteries.

According to the application situation in the production process of lithium batteries, lithium battery equipment can be divided into front end equipment, middle end equipment, rear end equipment, and module/PACK equipment. The market demand and development situation of the lithium battery equipment industry are mainly determined by the market capacity of the downstream lithium battery industry. In recent years, with the rapid development of the lithium battery industry, the demand for lithium battery equipment market has increased accordingly.

(1) Market size of lithium battery industry

According to different application scenarios, lithium batteries can be divided into three categories: power batteries, energy storage batteries, and 3C batteries. Thanks to the rapid development of the new energy vehicle, energy storage, and consumer electronics markets, the demand for lithium batteries in the market continues to increase, with shipments increasing year by year.

According to GGII research statistics, in 2022, the shipment volume of China's lithium battery market was 658GWh, a year-on-year increase of 101%. The main reasons are as follows: 1) In 2022, China's production of new energy vehicles was 7.058 million, a year-on-year increase of 96.9%; 2) The overseas production of new energy vehicles exceeds 4 million, driving an increase in domestic power battery exports; 3) Driven by overseas markets, the shipment of energy storage batteries reached 130GWh, a year-on-year increase of 171%.

According to GGII's forecast, the compound annual growth rate of China's lithium battery market will reach 53.3% from 2021 to 2025, and the shipment volume of lithium batteries in China will reach 1805GWh in 2025.

From the perspective of consumer terminals, power batteries are the main application field in the Chinese battery market, accounting for 73% of the market share of lithium batteries in 2022, far exceeding the other two major terminals; The shipment volume of energy storage lithium batteries is 130GWh, accounting for 19.8% of the Chinese lithium battery market share in 2022; In 2022, the growth of 3C batteries in China was less than expected, with a shipment volume of 48GWh, accounting for 7.2% of the market share of lithium batteries in China.

(2) Market size of lithium battery equipment industry

With the development of the new energy vehicle, energy storage, and consumer electronics markets, the demand for power batteries, energy storage batteries, and 3C batteries is showing an increasing trend year by year. The development prospects of the lithium battery industry are promising, and lithium battery production enterprises have formulated and implemented expansion plans one after another. According to GGII research and statistics, the market size of lithium battery production equipment in China in 2022 was 100 billion yuan, with a year-on-year growth of 70.1%. It is expected that the market size of lithium battery production equipment in China will reach 155 billion yuan by 2025.

(3) Market scale of lithium battery front-end equipment

According to GGII research statistics, the market size of China's lithium-ion front-end equipment in 2022 was 33.7 billion yuan, a year-on-year increase of 59.2%. It is expected that by 2025, the market size of China's lithium-ion front-end equipment will reach 49.5 billion yuan.