EnergyTrend Lithium Battery in IT Products and Power Application Market Report

Lithium Batteries Increasingly Used as UPSs in Datacenters Due to High Cost-Performance Ratio, Says TrendForce

As the datacenter market continues to grow, UPS demand receives a boost. According to statistics by EnergyTrend , a division of TrendForce , sealed lead acid (SLA) batteries remain the most widely used UPSs for datacenters. Yet lithium batteries possess advantages such as a long lifespan, quick charge/discharge speeds and a small volume, and are poised to replace SLA batteries in the future. By 2019, lithium batteries comprise 12% of batteries used in datacenters. This percentage is predicted to grow to 16% in 2020.

Lithium Batteries Have a Cost Advantage Compared to Lead-Acid Batteries
TrendForce points out that sealed lead-acid (SLA) batteries have been here for a hundred years, and were already widely used in a variety of energy storage systems. Disregarding new energy vehicles, the market scale for lead-acid batteries has already exceeded 380 GWh in 2019, forming 92% of batteries used in starting, lighting and ignition (SLI) and 75% in UPS applications. The remaining applications mostly go to NiMH batteries or lithium batteries due to product size constraints. Although SLA batteries possess advantages such as developmental maturity and low initial acquisition costs, its shallow-discharging nature and the need for more frequent maintenance remain difficult issues.

By comparison, lithium batteries have already entered mass production thanks to the rapid expansion of new energy vehicles. Prices and product technology have also become optimized as more and more suppliers enter the game. Lithium batteries have a chance to expand into many more fields of application due to various factors, whether energy density, charge/discharge speeds or maturation of usage.

Judging by total costs of ownership (TCO), SLA batteries often lose their initial cost advantages in the long run, since lithium batteries have a longer lifetime and a deeper depth of discharge, whereas SLA batteries require the installation of additional generators due to battery life considerations. Furthermore, lithium battery solutions can effectively shrink the sizes of UPSs, and have thus gradually received wider adoption by datacenters. TrendForce predicts that as lithium batteries increase in cost-performance ratio, they will be introduced into UPSs in swiftly increasing proportion.

The Future of Datacenter UPS is 'Shared'
As the server industry develops, data storage configurations in datacenters will go from distributed to shared, and this transformation trend will also turn individual, distributed UPSs in the system into a shared network. Besides acting as providers of backup power for datacenters and preserving the integrity and supporting continual transmission of data, the UPSs of large datacenters under the future grid structure will be able to form an emergency electrical system, providing continual power for the whole grid in the event of a grid overload. Although energy storage systems in the grid today consist mainly of large, centralized battery systems, they are bound to move on to become distributed and shared in the future as smart grids reach maturity.

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HEVs Already an International Trend, With China's Electric Cars Moving Towards Diversification, Says TrendForce

Thanks to China's new point-based quota system for new energy vehicles and the enlarging scale of European, American and Japanese markets, opportunities in the HEV market have attracted much interest. EnergyTrend , a division of TrendForce , predicts that global HEV market share will reach 5% in 2019, whereas that for pure electric vehicles will stand at only 2%.

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Demand for xEV Batteries Grow Steadily, but Chinese xEV Battery Market Faces Reshuffle as Subsidies Phase Out, Says TrendForce

According to the latest research by EnergyTrend, a division of TrendForce, the market of new energy vehicle will continue to grow steadily, driving the demand for xEV batteries, despite the slowdown in global automotive market since 2018. The global demand for lithium-ion batteries used in new energy passenger cars is estimated to reach 155GWh in 2019, a growth of 63% from 95GWh in 2018.

According to Duff Lu, senior research manager of EnergyTrend, China has become the world's fastest-growing market for new energy vehicles driven by the government’s subsidies and supporting policies. After a rapid growth in 1H18, the shipments of new energy cars in China slowed down in 2H18, moderating the demand in the xEV battery industry as well. However, with increasing penetration of new energy vehicles, the demand for lithium-ion batteries used in new energy passenger cars in China will grow to 54GWh in 2019, a growth of nearly 80% from 30GWh in 2018.

In terms of supply, the production capacity of xEV battery in China has surpassed 134GWh by the end of 2018, and has a chance to reach 164GWh in 2019. Amid the oversupply and phasing out of subsidies from the Chinese government, the industry has been faced with a reshuffle since the second half of 2018. Major manufacturers have grown stronger at the expense of the demise of smaller companies. Leading players like Contemporary Amperex Technology (CATL) and BYD continue to expand, while less competitive ones who rely too much on regional markets, such as OptimumNano Energy, may have to exit the market during the market reshuffle.

EnergyTrend expects that, with new capacity entering operation in 2019, the xEV battery industry will become more concentrated. The top five battery manufacturers would continue to grow and become the major suppliers. Subsidies from the Chinese government will be phased out by 2020, but before that, the industry will still depend on the subsidies to cover their R&D costs for advanced battery technologies. Manufacturers need to continue the development of high energy density solutions, building up competitiveness, before the electric vehicle market enters the maturity stage.

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Lithium Battery / Electric Vehicle Report
- EnergyTrend Lithium Battery Demand and Supply Market Database -
Price Trend
  • Material Price
  • Power Battery Cell Price
  • IT Battery Cell Price

Release Date: January, April, July, October

Format: EXCEL

Language: Chinese / English

Supply Market
  • Capacity Summary
  • China Power Battery Cell Player Capacity
  • Non-China Power Battery Cell Player Capacity
  • China IT Battery Cell Player Capacity
  • Non-China IT Battery Cell Player Capacity
Demand Market
  • Total Battery Demand
  • IT Demand
  • IT Demand- Q
  • xEV Battery Demand
  • Solar Battery Demand
  • Other Power Demand
  • Other Power Demand- Q
Capacity and Demand Market Analysis
  • Battery (IT, Power) Capacity and Demand Market Analysis
- Lithium Battery Market Dynamics - Materials, Cell and Application Requirement -
Supply Market Trend Demand Market Trend

Release Date: Mar., Jun., Sep. Dec

Format: PDF

Language: Chinese / English

1Q

Trend of Commodities and Battery Market

  • Long-term Trend for battery material
  • Policy update for Lithium Battery in China and new energy vehicle (LEV, xEVs)

Trend of Application Market

  • Demand of energy storage market
  • Supply and demand of battery in IT market and its price change
  • Niche application (E-cigarette Application)

2Q

Trend of Commodities and Battery Market

  • New formation battery- cathode material technology
  • Policy update for Lithium Battery in China and new energy vehicle (LEV, xEVs)

Trend of Application Market

  • Supply of energy storage market
  • Demand of xEVs market
  • Supply and demand change of battery in IT market
  • Niche application (electrical bicycle)

3Q

Trend of Commodities and Battery Market

  • New formation battery- anode and separator material technology
  • Policy update for Lithium Battery in China and new energy vehicle (LEV, xEVs)

Trend of Application Market

  • Battery reuse market development
  • Supply and demand change of battery in IT market
  • Niche application (power tool)

4Q

Trend of Commodities and Battery Market

  • Analysis of solid state battery technology / supply chain overview of solid state battery technology
  • Policy update for Lithium Battery in China and new energy vehicle (LEV, xEVs)

Trend of Application Market

  • Analysis of new-type personal transporting vehicle market- LEV
  • Supply and demand change of battery in IT market
  • Niche application (handheld device)
 
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Mr. Eric Chang
+886-2-8978-6488 ext. 822
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Ms. Grace Li
+886-2-8978-6488 ext. 916
GraceLi@trendforce.com
Mr. Perry Wang
+86-755-8283-8931 ext. 6800
perrywang@trendforce.cn
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