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The Global Road of China’s Power Battery Supply Chain

The Global Road of China’s Power Battery Supply Chain

2021 is a critical year for the global power battery to embark on the new journey of MWh. The Chinese power battery team is actively landing on the international stage, demonstrating the advantages of scale and technology "spillover".

Global electrification is accelerating, and Chinese companies go ahead of the rest.

GGII predicts that the global penetration rate of new energy vehicles will reach more than 20% by 2025, driving the global power battery shipments to reach 1100GWh, officially entering the TWh era.

Under the carbon neutrality target, the energy storage market will also start rapidly. GGII predicts that the global energy storage battery shipments will reach 416GWh in 2025, with a compound annual growth rate of about 72.8% in the next five years.

In the supply chain, lithium battery material companies have deepened the long-term order binding of global top battery companies, and while the production capacity has jumped, new materials and new technologies are competing for the flow, and the global voice has been continuously strengthened; lithium battery equipment companies are also accelerating their entry into the supply chain of international giants , the research and development of new equipment and new processes challenge the limit of intelligent manufacturing, and the weight of international roles is increasing day by day.

According to the incomplete statistics of Gaogong Lithium Battery, in 2021, Chinese power battery companies have won more than 20 overseas orders. Up to now, there have been more than 25 cases of Chinese lithium battery industry chain companies going overseas to build factories/investment projects. Among them, Europe has become a hot spot for Chinese lithium battery companies to invest, and North America, Southeast Asia and other regions are also heating up.

Combined with overseas orders and plant construction layout, the globalization process of China's lithium batteries mainly presents several major characteristics:

1st, with a large number of overseas orders in hand, the globalization strategy of Chinese power battery giants has been upgraded to accelerate the evolution of the market structure.

Holding huge orders or project designations and reaching long-term cooperation with overseas customers has become the direct reason for Chinese power battery companies to go overseas. So far, among the Chinese power battery companies, CATL, Envision Group, SVOLT, Farasis Energy, BYD, CALB, and GOTION have clearly or have already started to build factories in Europe.

In 2021, CATL will cooperate or step up cooperation with international car companies such as Hyundai, Volkswagen, Daimler Trucks, Tesla, BMW, Fisker, etc.; Envision Group has joined hands with Renault and Nissan to "make a move" in UK and France; EVE Energy has won Jaguar & Land Rover 48V fixed-point and large energy storage orders in the United States; GOTION has provided technical support to Volkswagen and established its first new energy production and operation base in Europe.

In terms of market structure, from January to October 2021, domestic battery companies such as CATL, BYD, CALB,  GOTION, and Envision Power has steadily occupied the top 10 in the world in terms of installed capacity, and their total market share will increase from 35.8%to 47.1% in 2020. The market share of Japan and South Korea companies represented by Panasonic, LG New Energy, Samsung SDI and SKI has declined.

Table-1 Overseas cooperation of Chinese power battery companies in 2021

Company Partner Date Brief Description about their cooperation
CATL FORD 7th Dec, 2021 Ford China executives have confirmed that CATL has started to supply Ford
FISKER 2nd Nov, 2021 US EV company Fisker has reached agreement with CATL to choose their battery for their EV SUV Ocean. From 2023 to 2025, CATL will supply 5GW per year and totally reach 15 GW.
ELMS 14th Oct, 2021 U.S. EV maker ELMS signed a battery supply agreement with CATL in a deal that will run until 2025. The two parties are also studying the establishment of a battery factory in US.
BMW 8th Sep, 2021 BMW revealed that the company's current power battery contract value has exceeded 20 billion Euros. Power batteries supplier and partners include CATL, EVE Energy, Samsung SDI and Sweden's Northvolt AB, etc.
TESLA 28th June, 2021 CATL will start to suppy their battery produts to Tesla from Jan, 2022 to Dec, 2025.
Rolls Royce 1st June, 2021 Rolls Royce revealed that their new model EV car Silent Shadow will adopts the lithium battery pack from CATL and Samsung SDI.
Daimler Trucks 23rd May, 2021 CATL will start to supply their pack to BENZ E-Truck model eActros LongHaul from 2024 until 2030.
Workhorse 5th May, 2021 Workhorse Group has announced that they will purchase the battery system from CATAL's distributor CSI.
Volkswagen 16th March, 2021 Volkswagen group CEO has confimred that they will increase the orders from CATL.
Hyundai 21st Feb, 2021 Hyundai group has announced that they will choose CATL and SDI as their supplier.
FlexGen Jan, 2021 US ESS integrator Flexgen and CATL has instaleld two sets ESS system with capacity 110MWh/set in Texas
EVE BMW 8th Sep, 2021 BMW revealed that the company's current power battery contract value has exceeded 20 billion Euros. Power batteries supplier and partners include CATL, EVE Energy, Samsung SDI and Sweden's Northvolt AB, etc.
Jaguar &       Land Rover 26th Feb, 2021 Has been their supplier of the 48V battery system.
Powin August,2021 Has signed the supply agreement with US ESS integrator Powin Energy for 2 years. EVE will supply not less than 1 GW LFP battery within 2 years
GOTION Volkswagen 12nd July, 2021 GOTION and Volkswagen Group have reached a strategic cooperation framework agreement to jointly promote the industrial production of batteries at the Volkswagen Group's Salzgitter plant, and GOTION will provide corresponding technical support.
BOSCH July, 2021 GOTION acquired Bosch Group’s factory in Göttingen, Germany, and established its first energy production and operation base in Europe, which means that GOTION officially launched localized production in Europe
Vinfast 23rd Aug, 2021 GOTION signed a memorandum of understanding on the R&D and production of LFP cells for electric vehicles with the Vietnamese car brand VinFast. The two parties will jointly carry out the R&D and production of LFP cells, and discussed the possibility of establishing a Giga factory in Vietnam
SVOLT Stellantis July,2021 SVOLT Energy has reached a global cooperation project with a total value of 16 billion CNY with Stellantis until July, 2021. STELLANTIS Group is a 50:50 merger of PSA Group and Fiat Chrysler Group (FCA), an automaker and mobility solution provider.
Envision Group Renault 28th June, 2021 Envision group has reached a comprehensive strategic cooperation with the French Renault Group, and Renault will provide power battery orders of 40 to 120GWH in five years to Envision.
Nissan 1st July,2021 Envision group will provide power batteries for Nissan’s next-generation electric vehicle platform, and will build the first power battery super factory in the UK to produce the latest generation of power battery products. By 2030, the production capacity will reach 25GWH, and it has the potential to achieve 35GWH expansion.
Farasis Energy TOGG 28th Oct, 2021 SIRO, a joint venture company of Farasis Energy, signed a 20GWH investment plan and incentive documents with the Turkish Ministry of Industry and Technology.
Microvast Safra March, 2021 Microvast  signed a framework agreement with French bus manufacturer Safra to provide Safra with three standardized battery products in the next three years, with an estimated number of 2,000 battery packs.
Sunwanda India 19th April, 2017 Has set up its office and factroy in India.
Sungrow India 27th July, 2018 Has set up its factory in India to make PCS with capacity 3 GW also start to sale ESS system.
SINENG India 22nd Aug, 2018 Has set up its factory in India to make PCS with capacity 5 GW.
GOODWE India 10th July,2018 Has set up its factory in India to make PCS.


2nd, the globalization of China's lithium battery materials and equipment has accelerated, and China's lithium battery industry chain has gradually become a trend to go overseas.

The rapid rise of the electrification market in Europe and the United States, the large-scale expansion of power battery companies has led to a surge in the demand for materials and equipment, and a number of Chinese lithium battery companies with the ability to "go global" have successively established factories around the world.

In terms of manufacturing core materials for power batteries, China has a global lead, with cathode materials accounting for 42% globally, anode materials 65%, electrolytes 65%, and separators 43%. In addition, supporting opportunities such as conductive paste and structural parts are also increasing significantly.

Based on this, lithium battery material companies including Tinci Materials, Capchem, Kedali, Cnano Technology, Easpring Technology, SEMCORP, Jiangsu GTIG, Lopal Group, Sinodmc and other lithium battery material companies have established subsidiaries in one or more countries. and supporting projects.

Table-2 Overseas layout of Chinese lithium battery materials companies

Company Location Date Brief Description about their cooperation
Tinci Materials Germany March, 2021 A wholly-owned subsidiary was established in Germany.
US Nov, 2020 Established an electrolyte production R&D center in the United States. In November 2020, Tinci has signed an agreement with Tesla to supply electrolyte products to its factory in U.S. and Germany.
Czech Aug, 2020 In October 2019, a wholly-owned subsidiary was established in the Czech Republic. In August 2020, an electrolyte plant with an annual output of 100,000 tons was built in the Czech Republic, with a total investment of 275 million CNY.
South Korea Oct, 2019 Set up a wholly-owned subsidiary in South Korea.
 Capchem US Nov, 2021 Signed a supply contract of approximately US$367 million with ULTIUM cells. Electrolyte products will be supplied from the date of signing to the end of 2025. A US company has been incorporated and a US production base will be established.
Holland Aug, 2021 A wholly-owned subsidiary will be established in the Netherlands in March 2021. In August 2021, it plans to invest 1.5 billion CNY to build a lithium battery electrolyte factory.
Poland May, 2020 In June 2018, a wholly-owned subsidiary was established in Poland. In May 2020, 360 million CNY was invested to build a lithium battery electrolyte factory.
Kedali Germany March, 2020 Has started to build their factory in Germany January 2021, with a total investment of 60 million Euros and the construction period is 30 months.
Sweden Oct, 2020 Set up a Swedish subsidiary and invest 50 million euros to build a factory in Sweden with a construction period of 24 months.
Hungary Nov, 2021 Invested 30 million euros to build a factory in Hungary.
Cnano Technology US Feb, 2021 Invested US$50 million to set up a factory in Nevada to produce carbon nanotube conductive paste.
 Senior Technology Material Sweden Nov, 2021 In September 2020, it invested 22 million USD to build a European factory. In November 2021, it will invest 100 million USD to expand its European factories.
 SEMCORP US June,2021 Signed a separators procurement contract with US battery maufacturer Ultium Cells for a total contract value of US$258 million. Available from the date of signing until the end of 2024.
Hungary Nov, 2021 Invested 183 million Euros to build a lithium battery separator production line in Hungary, with an annual production capacity of about 400 million square meters.
Easpring Technology Finland Nov,2021 Established a joint venture with the Finnish Mining Group, and planned to build a cathode material production base with an annual output of 100,000 tons in Finland. SK Group holds a 30% shares in this joint venture company.
South Korea Nov,2021 Established a joint venture company in Korea to jointly develop the Korean and American markets.
Jiangsu GTIG Poland Nov,2021 Will build a factory with name Prusice in Poland, with an annual output of 40,000 tons of lithium battery electrolyte.
Lopal Group Indonesia Nov,2021 Established a joint venture with Stellar in Indonesia to build a 100,000-ton LFP cathode material plant with a total investment of US$285 million.
Sinodmc Poland June,2021 Build  a joint venture with PCC Rokita to build a 20,000-ton electrolyte plant.
Czech Oct,2020 Set up a wholly-owned subsidiary in the Czech Republic.


In addition, as domestic top equipment companies enter the supply chain of international first-tier battery companies, the speed of "going overseas" is also accelerating. Leading lithium battery equipment companies such as Lyric Robot Automation, Hymson Laser, Lead Intelligent, KATOP Automation and UW Laser have entered the market. The supply chain of international car companies/power battery giants, the globalization path has gradually extended farther.

Table-3 Overseas layout of Chinese lithium battery equipment companies

Company Location Date Brief Description about their cooperation
Lyric Robot Automation Germany July, 2021 Won the Bid for SVOLT Energy Europe Factory Lithium Battery Product Assembly Line Project.
Germany End of 2019 The first overseas wholly-owned subsidiary was established to promote the international business development of the headquarters. It has established good relations with several European car companies and their power battery suppliers.
Hymson    Laser US Dec, 2019 Signed orders with Tesla totaling 77.85 million CNY, all of which were exported to its U.S. factories.
Lead Intelligent Slovakia Nov, 2021 Signed a cooperation agreement with Inobat Auto, a European battery research and development company, to provide a complete solution for its soft pack lithium battery production line in Slovakia.
Germany Jan, 2021 igned a cooperation agreement with BMW to provide overall solutions for its new energy vehicle pack intelligent production line.
Sweden Jan,2019 Signed a framework agreement with the Swedish battery company Northvolt, and the two parties plan to carry out business cooperation of about 1.94 billion CNY in the future.
UW Laser Germany Oct, 2020 Signed a cell welding system supply contract with CATL subsidiary CATL Germany
and its contract value is 161.2 million CNY.


3rd, the battery industry is moving from made in China to designed in China. The establishment of a global intellectual property system for Chinese enterprises has accelerated, and Chinese products, Chinese technologies, and Chinese solutions have begun to "spill over" overseas in all directions.

European and American economies are accelerating their embrace of electrification, and have invested heavily in the deployment of battery links to supplement the chain and strengthen the chain. However, it is unrealistic to quickly build up its own technology R&D and supply chain capabilities in the short term, and it must rely on external forces to empower it.

Relying on the competitiveness of technical reserves, industrial chain support, and large-scale manufacturing accumulated over the years, Chinese products, Chinese solutions, and Chinese technologies are deeply involved in the construction of its battery industry.

In this process, Chinese lithium battery companies are also accelerating the construction of a global intellectual property system. Taking Shenzhen Capchem as an example, in the process of internationalization, it focuses on overseas intellectual property layout and capability output. Additives with independent intellectual property rights enter the supply chain of overseas enterprises, and sales account for more than 30%.

Another example is the field of cell simulation design. China took the lead, mastered independent intellectual property rights from the beginning, and stood on the high ground in this field. The Chinese company Suzhou Electroder has delivered a complete set of cell design solutions for a super battery factory in Europe, meeting the customer's rapid implementation from early demand to production.