In 2021, affected by factors such as the "carbon peak, carbon neutrality" target traction, and the unexpected growth of new energy vehicles, the power battery industry usher in a development trend. The market is in short supply, companies are expanding production, and the capital market is surging...... However, behind the hot market, there are still problems such as insufficient supply of upstream raw materials, great uncertainty in R&D of disruptive technologies, and shortage of R&D personnel, which seriously restricts the healthy development of the industry.

In 2021, Chinese power battery market continues to be in short supply. The survey found that many leading companies have already filled their orders in 2022, and some companies have even refused to accept new orders. From January to November 2021, the cumulative installed capacity of power batteries in China reached 128.3GWh, a year-on-year increase of 153%. The China Association of Automobile Manufacturers predicts that in 2022, the sales of new energy vehicles in China will reach 5 million, a year-on-year increase of 47%.

Good expectations drive the accelerated expansion of the power battery industry, and the ability to operate large-scale production capacity is also one of the core capabilities of current power battery companies. Under the current market conditions, the stable supply capacity of enterprises is an important factor to seize the market.

There are three major uncertainties:

First, the key raw materials are imported, and there are security risks in the supply chain. Although from a global perspective, China's power battery industry has quite strong market competitiveness, it cannot be ignored that under the existing technical route, the raw materials such as lithium and cobalt contained in high-energy density ternary lithium batteries are heavily dependent on imports, and this is the reason why many leading companies are looking outwards in 2021. At the same time, the high dependence on imports of raw materials has also led to obstacles in the application of power battery production capacity.

 Second, there is a question mark about when disruptive technologies will be realized. In recent years, concepts such as solid-state batteries, cobalt-free batteries, and sodium-ion batteries have emerged one after another. Although there are companies from time to time publicizing major breakthroughs in the field of disruptive battery technology, not many have actually been mass-produced and recognized by the market.

 The third is the shortage of technical talents, due to the serious shortage of domestic talent supply, the competition for talents by related enterprises has entered a state of "hand-to-hand combat", but the cultivation of talents cannot be completed in a short period of time. The problem of talent shortage will become an important factor hindering the development of the industry.

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