On August 23,CATL, ranks first in top 10 lithium ion battery manufacturers, released its report for the first half of 2022. The energy storage system business achieved sales revenue of over 12.7 billion RMB, a year-on-year increase of 171.41%.
3 key markets are leading battery deployment in Europe: GB, Germany & Italy. BESS deployment across these 3 markets alone could reach 45-50GW by 2030. There are some common value drivers across all markets, but investors also face some significant differences in risk/return dynamics across each market.
From the perspective of the cost structure of the energy storage system, the battery cost accounts for the highest proportion, reaching 60%. Therefore, thesubstantial increase in the cost of batteries will inevitably lead to a substantial increase in the cost of the energy storage system.
The gross profit margin in this segment surged to 21.32%, showing a remarkable year-on-year increase of 14.89%. A report by SNE on the power battery industry shows that the global power battery usage reached 237.6GWh from January to May 2023, showing a notable year-on-year growth of 52.3%.
Moreover, according to data from SMM, the shipments of global energy storage batteries in the first half of 2023 surged to 87.0GWh, demonstrating an impressive year-on-year growth of 122.0%. CATL’s production capacity for energy storage batteries remained unparalleled, securing its rank as the world leader in this segment.
For the whole of last year, although the gross profit margin of the energy storage business decreased, it also reached 28.52%. In the first half of 2022, the gross profit margin of the energy storage business plummeted to 6.43%, down nearly 30 percentage points year-on-year, which can be described as adisaster.