With the explosion of new energy vehicle (NEV) production and sales, the installed capacity of power batteries has also seen rapid growth, in turn promoting the rising demand for battery materials, according to TrendForce’s investigations. Among battery materials, cathode materials are most in demand for power batteries and their shipments have benefited from the rapid growth of the NEV market. It is estimated that the global demand for power battery cathode materials in 2021 will reach 600,000 tons and this number is expected to exceed 2.15 million tons by 2025.
Along with the swift development of the Chinese new energy vehicle (NEV) industry, the number of retired power batteries has risen year over year with Chinese waste power battery volume estimated to exceed 18GWh in 2021 and reach 91GWh by 2025, according to TrendForce’s latest investigations. Currently, power battery recycle and reuse is primarily divided into echelon utilization and material recycling. Chinese waste battery material recycling already possesses a certain scale with a 2020 market size of RMB2.4 billion and it is estimated to reach RMB26 billion by 2025.
As the global automotive industry picks up the pace of electrification, there will be a corresponding increase in the demand for nickel, which is a key ingredient for automotive batteries, according to TrendForce’s latest investigations. Incidentally, Indonesia has recently made gradual announcements indicating that it intends to terminate the export of such unprocessed ores as nickel, copper, and tin, and this restriction will likely have an impact on the global supply chains in which these materials are used. Indonesia possesses the world’s highest volume of nickel reserves (which refer to the total availability of nickel in the country), at 21 million tonnes, representing more than 20% of the global total. With regards to nickel production (which refers to the actual amount of nickel that is mined), on the other hand, Indonesia accounts for more than 30% of the global total. As such, Indonesia is the primary source of raw materials for NEV (new energy vehicle) batteries manufactured by countries such as China.
Polysilicon prices have seen continuous hikes in the past two weeks due to the explosion at Jiangsu Zhongneng’s chemical plant in Xinjiang and the impact of the COVID-19 pandemic, according to TrendForce’s latest investigations. In particular, mono polysilicon closing prices increased by more than 10% on average, which led wafer suppliers to increase wafer prices. As a result of rising wafer prices, the downswing in global PV module prices rebounded into an uptrend instead.
The current progress of downstream PV system installation in Taiwan is considerably lagging behind the 2.2GW yearly installed PV capacity targeted by the Bureau of Energy, Ministry of Economic Affairs in 2020, according to TrendForce’s latest investigations. Taiwan’s cumulative installed PV capacity reached a mere 410MW during the first five months of the year. Furthermore, recent legislative changes by the Council of Agriculture have made an impact on Taiwan’s PV industry, meaning the Bureau’s target of 2.2GW this year is a tall order for the market to reach. However, total PV module shipment and inverter shipment in Taiwan have each closed in on the 1GW mark in 1H20, a historical high for both sectors.