According to the Shanghai Metals Market review, China produced 128,000 tonnes of lithium-battery aluminium foil (battery foil) in 2021, which accounted for nearly 2.8 per cent of the country’s total aluminium foil output and registered a year-on-year surge of 83 per cent.
This prodduction hike could be attributed to the commissioning of new battery foil capacities at a fast pace last year. Currently, there are reportedly 15 battery foil projects under construction, which are estimated to come into operation between 2022 and 2025, with a total capacity of 592,000 tonnes. In addition, some existing gauge foil producers are contemplateing to convert their capacities into battery foil production.
Battery foil has the largesr use in new energy vehicle power battery, followed by energy storage battery and electronics battery. In the past few years, the output of energy storage batteries has seen a rapid growth yet unlikely to exceed EV power battery in foil consumption.
Last year, power battery output stood at 220GWH, reflecting a year-on-year increase of 165 per cent. The Y-o-Y growth rate in the first five months of 2022 is also above 100 per cent.
SMM anticipates that there could be a tight balance between demand and supply of aluminium battery foil in 2022 based on the data available, given a rapid development in the new energy industry.
At the same time, some aluminium foil companies continue to focus on the high-end light gauge foil due to the low yield and long account period of battery foil. Therefore, the tight balance between supply and demand in the battery foil industry will last this year.
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