Aluminium battery foil projects are spearheading in China, with 17 new plants under construction or some started production, reported the Shanghai Metals Market survey. Out of the 17 new projects with a total capacity of 1.272 million tonnes, 15 are estimated to be fully operational before the end of 2024.
Throughout 2020 and 2021, the aluminium battery foil industry gained immense prominence, experiencing a production increase to almost double at a consistent growth rate of approximately 100 per cent. The number of enterprises with stable output also grew from below 5 in 2020 to 16 at the present.
More capacities are coming, driven by the growing demand for aluminium foil batteries. Many of the 17 new projects are likely to start commissioning from 2023, such as Projects 1, 3, 6, 9, 10, 12, and 13. Projects 4, 7, 8, 11, 14, 15, and 17 will likely begin operations in 2024, while Project 2 before 2025 and Project 5 from 2025. With this, increases the number of new market entrants and the supply of battery foils.
The growth of aluminium battery production transitioned the market from ‘supply shortage’ to ‘supply surplus’ in the second half of 2022.
However, in the interim period, the aluminium foil consumption per unit of sodium batteries has been found growing than that of lithium batteries. In 2023, this technology has become prominent, leading energy storage industry to gradually focus on sodium batteries. But nonetheless, the outlook for the demand of battery aluminium foil still holds promising, found SMM.
Sourced from Shanghai Metal Market (SMM)
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