Lithium battery energy storage industry is at an inflection point

In order to resist global warming, more and more countries have proposed carbon neutrality goals. According to the data, about 28 countries have proposed carbon neutrality time nodes. According to IEA forecasts, the share of global photovoltaics and wind energy in total electricity generation will increase from 7% today to 24% in 2040. The change of power consumption structure makes the necessity of energy storage more and more stronger:

Lithium battery energy storage is gaining momentum
Electrochemical energy storage has large capacity and fast response, and has the most development potential.
The report predicts that in 2021-2023, the newly installed capacity of global lithium battery energy storage will reach 42.58/ 77.32/ 104.50GWh respectively, with an average annual compound growth rate of 56.65%, of which the newly installed capacity of distributed photovoltaic energy storage will be 21.20/ 37.21/ 53.89GWh, with an average annual compound growth rate of 59.44%; the newly installed capacity of global centralized wind power distribution and energy storage is 7.00/ 13.87/ 20.30GWh, with an average annual compound growth rate of 70.26%.

The electrochemical energy storage market has a broad market space, attracting companies from all parties in the industry chain to participate. We believe that different application scenarios have different requirements for companies:
1) Household energy storage has strong consumption attributes, so channel and brand advantages are more important, and channels and brands are usually in the hands of terminal system integrators. In addition, household energy storage products are less sensitive to hardware prices, etc. Therefore, in the residential energy storage market, we are more optimistic about core system providers.
2) Centralized large-scale energy storage projects have high requirements on battery life and cost, and the number of lithium batteries used in a single project is higher, and the consistency of lithium battery manufacturing is higher, and lithium battery manufacturers are more in terms of manufacturing and cost control. Therefore, in centralized large-scale energy storage projects, companies with a background in lithium battery manufacturing will stand out from the competition.
Overall, in the global market,  lithium battery factories have evolved mature technical routes and strong cost control capabilities, and are the most powerful competitors in the global lithium battery energy storage market. The  lithium battery industry chain will fully benefit from global electrochemical energy storage. The rapid development of the industry.