AESC's megafactory in Jiangyin, Wuxi, Jiangsu Province, has officially commenced mass delivery of 46-series large cylindrical battery products. It is reported that the first batch of products has been shipped to the US and will be applied to BMW Group's future-oriented sixth-generation global EV platform. This delivery marks the beginning of AESC's crucial role as the core battery supplier for BMW Group's next-generation "Neue Klasse" car models.

[LG Energy Solution Secures 46-Series Large Cylindrical Battery Orders from Chery] On June 16, it was reported by Yonhap News that LG Energy Solution, a South Korean battery producer, announced it had signed a six-year supply agreement for 46-series large cylindrical batteries with Chery Automobile, a Chinese vehicle manufacturer. This marks the first time a South Korean battery producer has signed a cylindrical battery supply contract with a Chinese vehicle manufacturer. According to the agreement, LG Energy Solution will supply 46-series large cylindrical batteries to Chery Automobile, with an order volume of 8 GWh, capable of meeting the loading needs of approximately 120,000 EVs. Although the contract value has not been disclosed, industry experts estimate that it may exceed 1 trillion won (approximately 5.252 billion yuan at the current exchange rate).

[NIO Reported to Be Developing Batteries, with Mass Production Next Year] Recently, it has been reported that NIO will develop and supply power batteries for McLaren, a UK-based supercar brand. This collaboration was facilitated by their common investor, CYVN Holdings. The relevant battery packs will be based on NIO's self-developed 4680 large cylindrical batteries, with small-scale mass production expected next year. NIO will also leverage this collaboration to restart the suspended 46105 large cylindrical battery and 120-degree battery pack projects. NIO has long been making strategic moves in the battery sector. Its 46105 large cylindrical battery project was originally planned for the NIO ET9 but did not materialize due to strategic adjustments. Previously, NIO also collaborated with CATL on a long-life battery R&D project, aiming to achieve a technical and operational goal of 15 years of battery use with 85% health.

In the diversified landscape of lithium batteries, cylindrical, prismatic, and pouch batteries each have their own advantages. Among them, cylindrical batteries, as the earliest type of lithium battery to achieve mass production, have always held a significant position in the industry due to continuous technological innovation and market adaptability. Cylindrical batteries, driven by innovation, are reshaping the industry landscape. The birth of cylindrical batteries stemmed from the perfect alignment of technology and market demand. In the late 20th century, with the surge in demand for lightweight and efficient power sources in portable electronic devices, Sony seized the opportunity and introduced the revolutionary 18,650 cylindrical battery, quickly leading the trend in the consumer electronics market. With their excellent performance, cylindrical batteries soon became mainstream in the industry, driving the rapid development of consumer electronics towards miniaturization, lightweight design, and extended driving range. During the early stages of EV industrialization, cylindrical batteries also became a key driving force due to their unique advantages. In 2008, Tesla's first electric sports car, the Roadster, innovatively adopted a combination of nearly 7,000 18,650 lithium batteries, showcasing the excellent product consistency, mature manufacturing processes, and outstanding cost advantages of cylindrical batteries. This move successfully helped Tesla open the door to EV commercialization, laying a crucial foundation for the global NEV industry's transition from concept validation to large-scale development. Despite their significant role in the early development of the electronic device and NEV markets, the market expansion of cylindrical batteries has not been without challenges. In the NEV market, as consumer demand for driving range continues to rise, higher requirements for battery energy density have emerged, coupled with demands for battery pack space utilization and manufacturing efficiency. As a result, the advantages of prismatic and pouch batteries have gradually become more prominent. In the ESS market, large-scale ESS projects impose extremely high requirements on cost control and system integration management, slowing the promotion of cylindrical batteries in this market. However, even so, cylindrical batteries have not stood still but have actively sought innovation and change to reshape the industry landscape. Leading companies have invested heavily in R&D, continuously exploring the boundaries of performance in material innovation and structural optimization. Among them, Shenzhen BAK Power Battery Co., Ltd. (referred to as BAK Battery), a pioneer and leader in the global cylindrical lithium battery industry with over 20 years of experience, has deeply explored the core advantages of cylindrical batteries. Through a three-dimensional reconstruction of "application scenario innovation + material system upgrade + structural design optimization," BAK has achieved industry-leading technological results. Recently, research institutions EVTank and the EVI Economic Research Institute, in collaboration with the China Battery Industry Research Institute, jointly released the "China Cylindrical Battery Industry Development White Paper (2025)." The white paper disclosed the top 10 global cylindrical lithium-ion battery shipment companies in 2024. BAK Battery made the top 10 list, ranking seventh globally in cylindrical lithium-ion battery shipments in 2024. Strong growth in traditional application markets continues to boost the demand for cylindrical batteries. EVTank data shows that global cylindrical battery shipments reached 12.82 billion units in 2024, up 3.6% YoY. Among them, cylindrical battery shipments for power tools increased by 25.4% YoY, while those for electric two-wheelers rose by 34.6% YoY. In terms of market structure, against the backdrop of varying degrees of decline in cylindrical battery shipments by Japanese and South Korean companies, Chinese companies achieved counter-trend growth. The market share of Chinese companies in the global cylindrical battery market surged from 29.3% in 2023 to 43.6% in 2024, demonstrating strong market competitiveness. EVTank analysis indicates that the more prominent cylindrical battery companies in 2024 mainly seized opportunities in the small power market in Southeast Asia, the domestic substitution of power tool batteries, and the overseas household ESS market. Additionally, EVTank pointed out that Chinese companies are also leading the industry in exploring new application scenarios for cylindrical batteries, such as BBU backup power, AI robots, eVTOL, and biomedical applications. "Scenario + Material + Structure" Three-Dimensional Reconstruction! Building a Comprehensive Product Matrix The rise of emerging application markets has opened up vast development space for cylindrical batteries. Recently, Liu Zhibo, Executive Vice President of BAK Battery, noted in an exchange with Battery Network that the combination of cylindrical and ternary batteries, with their high C-rate discharge characteristics, perfectly meets the needs of recent hot industries. Liu Zhibo analyzed that in the low-altitude economy sector, aircraft impose unprecedented stringent requirements on power batteries. First, in terms of energy density, they need to meet the MIIT aviation lithium battery standard target of 400-500 Wh/kg, far exceeding the average of 200-300 Wh/kg for ordinary vehicle lithium batteries. Second, in terms of power performance, the instantaneous power required for vertical takeoff and landing demands that batteries can sustain 3-5C discharge and peak at 7-10C discharge, while also requiring fast charging capabilities. Additionally, the recently popular embodied intelligent robot industry and AI data center battery backup units (BBUs) also pose dual challenges to battery performance: requiring both breakthrough energy density and excellent power output capabilities. In the embodied intelligent robot industry, batteries need to be compactly adapted to the robot's body. Cylindrical batteries, with their standardized size and flexible layout, have become the preferred power solution for the robot industry. Combined with the continuously improving energy density performance of cylindrical batteries, they meet the core needs of the embodied intelligent industry for compact design, lightweight body, and long driving range. "The cylindrical structure has good heat dissipation performance and is suitable for modular design, which aligns with the high efficiency and modularity required by AI data center BBUs," Liu Zhibo further analyzed. "Moreover, cylindrical batteries use steel shell encapsulation, offering high mechanical strength and superior resistance to collision and compression compared to prismatic or pouch batteries, making them suitable for high-vibration, high-impact application scenarios such as low-altitude aircraft and robots." In terms of technological innovation, BAK Battery has also achieved remarkable results. In the field of structural innovation, the full-tab technology has brought new ideas for the performance renewal of cylindrical batteries and provided a key code for BAK Battery's business innovation. BAK Power Battery is a pioneer in the field of full-tab large cylindrical batteries, achieving the domestic debut of the 4,680 full-tab large cylindrical battery as early as the beginning of 2021, leading the industry in technology layout and R&D progress. The cylindrical structure, combined with advanced technologies such as high-nickel cathodes, silicon anodes, and silicon-doped lithium supplementation, has significantly improved energy density. Liu Zhibo revealed that BAK Power's full-tab large cylindrical batteries have now iterated to the third generation. The full-tab large cylindrical technology has also brought a positive "feedback" effect to the small power market. In March 2024, BAK Battery released a new generation of full-tab small power battery products: 2,170-40D, 2,170-45D, and 2,170-50D. This series targets three major sub-markets: smart living, power tools, and micro-mobility, showcasing six characteristics: high power, low internal resistance, low temperature rise, fast charging, long cycle life, and high capacity. Additionally, in March 2025, BAK Battery officially launched the full-tab 1,865 D series products, achieving comprehensive performance upgrades and leading user experience to new heights. At this point, BAK has officially formed a full-tab full-matrix cylindrical battery product system covering the 18-series, 21-series, and 46-series. Liu Zhibo stated, "The strategic value of this product system lies in its comprehensive scenario adaptability: whether in the EV field with extremely high energy density requirements or in the small smart device field with special power and size requirements, BAK Battery's full-tab products can meet the diverse needs of mobile end-use products with their excellent performance, effectively driving the transformation and upgrading of smart lifestyles." In the field of material innovation, BAK Battery has also made significant breakthroughs. On February 25, BAK Battery officially launched the PRO-M high-safety battery, which meets the requirements of the new national standards while achieving dual upgrades in safety and performance, aiming to provide a more reliable and efficient energy solution for short-distance travel. In terms of materials, the new generation of BAK PRO-M high-safety battery innovates from the cathode, separator to the electrolyte, providing triple protection and improving the battery's safety performance: using a composite cathode with excellent thermal stability, maintaining structural stability at high temperatures; using a composite-coated separator to maintain good insulation; and using a highly stable electrolyte to effectively reduce interfacial side reactions. In terms of process, BAK has developed a new process that makes the slurry more dispersed and the internal resistance smaller, achieving high safety, high capacity, long driving range, and wide temperature range performance. The BAK PRO-M high-safety battery can pass the industry's most stringent nail penetration test, meeting the safety performance requirements of GB43854-2024 and GB40559-2024. In product layout, BAK Battery has always adhered to a market demand-oriented development philosophy. Liu Zhibo introduced: Based on deep insights into sub-markets, we have built a complete product matrix in the cylindrical battery field, including high-capacity series, high-power series, and high-safety series, comprehensively covering mainstream specifications such as 18/21/46 series, providing precise energy solutions for different application scenarios. Conclusion: Throughout the development history of the lithium battery industry, cylindrical batteries not only drove the transformation of the consumer electronics industry in the early stages and helped the EV industry take its first steps, but also continuously innovated and adapted in the face of challenges, witnessing the evolution of lithium battery technology and changes in market demand, always occupying an irreplaceable important position in the development process of the lithium battery industry. With the advent of the AI wave, cylindrical batteries, as the "evergreen tree" of the lithium battery industry, have ushered in new development opportunities. In the industrial context of continuously emerging diversified application scenarios, the high C-rate and standardized characteristics of cylindrical batteries have become hard currency in market competition. BAK Battery, with its continuous investment and leading achievements in technological innovation, as well as its precise grasp of market trends, has occupied significant technological advantages and a solid market position in the cylindrical battery market.

In early April, the US announced a so-called "reciprocal tariff" policy, imposing at least a 10% tariff on all goods exported to the US and higher rates on countries with the most severe trade imbalances. Among them, China will face a 34% tariff. At the same time, the US imposed a 24%-49% tariff on Southeast Asian countries (such as Vietnam and Thailand), blocking China's traditional strategy of re-exporting through third countries. On April 10, the US government announced that the "reciprocal tariff" rate on Chinese goods exported to the US would be further increased to 125%. Cui Dongshu, Secretary General of the Passenger Vehicle Market Information Association under the China Automobile Dealers Association, stated that the proportion of Chinese cars exported to the US is negligible, especially for domestic brands, and they will not be affected by the US tariff hike. In 2024, only 116,000 units of Chinese cars were exported to the US, accounting for just 1.81% of China's total car exports. Previously, most domestic brand companies in China had already announced their withdrawal from the US market. Although this tariff adjustment has a relatively limited impact on China's vehicle manufacturers, it has become a focal point in the automotive parts sector, where the US is one of the main export destinations. For example, according to data disclosed by the General Administration of Customs, in 2024, the US remained the largest market for China's lithium battery exports, with an export value of $15.315 billion, setting a new record, and accounting for 25% of China's total lithium battery export value, up 4.2 percentage points from 2023. According to a set of data shared by Cui Dongshu recently, since 2020, China's lithium battery exports have performed relatively well, with exports reaching $15.9 billion in 2020, rising to $28.4 billion in 2021 and $50.9 billion in 2022, and reaching an extremely high level of $64.9 billion in 2023, but dropping to $61.1 billion in 2024. In Q1 2024, China's monthly lithium battery exports remained stable at around $5 billion. It can be seen that the US's high tariff policy will bring some pressure to China's new energy battery industry in the short term. However, China controls 80% of the global battery industry chain (from lithium mines to equipment manufacturing). Although Japanese and South Korean battery companies have formed a certain competitive advantage in the US market, they still rely on core materials from China for their factories in the US. In the upstream material field, data from research institution EVTank shows that China's global market share of key battery materials is at a high level and is on the rise; in 2024, the market share of cathode materials reached 89.6%, anode materials 95.9%, electrolytes 91.9%, and separators 79.4%, making it difficult to shake its dominant position in the short term. In the medium and long term, EVTank pointed out that the future international development of China's lithium battery industry will gradually shift from being trade-oriented to local investment and development overseas, and from exports to going global. According to incomplete statistics from Battery Network, in 2024, there were over 279 investment and expansion projects in the new energy battery industry chain, with 229 projects announcing investment amounts, totaling 628.188 billion yuan. Among them, in 2024, domestic battery industry chain companies invested in 27 overseas projects, with 25 projects announcing investment amounts, totaling about 97.031 billion yuan, accounting for 15.45% of the total annual investment. It is worth noting that all 27 overseas projects included in the statistics were invested and constructed by A-share listed companies, covering almost the entire battery industry chain, including batteries, battery raw materials, cathode and anode materials, electrolytes, copper foils, separators, and structural components, except for some auxiliary materials. In terms of overseas destinations, domestic companies mainly focused on locations such as Hungary and Spain in Europe, Morocco in Africa, Thailand, Malaysia, and Indonesia in Southeast Asia, and the US in North America. Currently, the uncertainty caused by the "reciprocal tariff" is still fermenting. According to rough statistics from Battery Network, in April alone, more than 12 listed companies announced new developments in overseas battery and material-related projects, accelerating the construction or advancement of overseas factories or related projects to avoid trade barriers and get closer to market demand. Pulite: HSD's First Overseas Cell Factory Delivered On April 6, Pulite (002324) held a factory delivery ceremony and mechanical and electrical installation project commencement ceremony for its 2.5GWh cylindrical power battery production base project in Malaysia, invested by its subsidiary HSD. HSD's Malaysian factory plans to complete the installation and commissioning of mechanical and electrical engineering and equipment within six months, with production expected to start in Q3 2025. It will then become HSD's first overseas cell factory to achieve mass production. The factory, with a planned investment of 750 million yuan, will mainly produce cylindrical batteries for power tools, smart mobility, and cleaning appliances, with an annual capacity of 2.5GWh. Investment Nears 1 Billion Yuan! EVE's Overseas Factory Receives Approval On the morning of April 8, EVE (300014) announced that its wholly-owned subsidiary, EVE Power Hungary Kft. (referred to as "EVE Hungary"), recently received a building permit decision from the Debrecen City Government in Hungary, allowing EVE Hungary to establish a battery manufacturing plant in Debrecen. EVE stated that receiving the building permit decision will effectively promote the company's construction needs in Hungary and facilitate all parties to fully leverage their resources and advantages, further expanding the production capacity of power and ESS batteries, continuously consolidating and enhancing the company's influence, comprehensive competitiveness, and internationalization level in the new energy industry, and is an important step in the company's efforts to improve its global industrial layout. According to EVE's announcement in June 2023, its wholly-owned subsidiary, EVE Hungary, plans to invest no more than 9.971 billion yuan in the construction of a large cylindrical battery project for passenger vehicles. Annual Capacity of About 200,000 mt! GEM and Korea's ECOPRO Plan to Jointly Build Cathode Material Plant On April 11, GEM (002340) announced that it had signed a strategic cooperation agreement with Korea's ECOPRO and its subsidiary ECOPRO BM to build a "nickel resource - new energy materials" industry chain. Both parties will jointly develop the IGIP park in Indonesia and implement the IGIP project, covering the core supply chain of secondary battery materials, including nickel resources, precursors, and cathode materials. ECOPRO will participate in the infrastructure service company with a stake of no more than 20%. GEM and ECOPRO will also jointly invest in a laterite nickel ore high-pressure leaching project and establish a joint venture to build a cathode material plant with an annual capacity of about 200,000 mt. This strategic cooperation aims to enhance GEM's core position in the global high-nickel precursor manufacturing field, promote the company's future performance growth, and align with the company's long-term development strategy and the interests of its investors. CATL: German Factory Now Profitable On the evening of April 14, CATL (300750) released its Q1 financial report. During the earnings briefing, CATL stated that in terms of the profitability of overseas factories, the company's power battery sales in the European market achieved YoY growth in Q1. The company's market share in the European power battery market increased from 17% in 2021 to 38% in 2024, ranking first, and the market share has continued to increase this year, widening the gap with the second place. The company's German factory has started to make a profit. Two Listed Companies to Build Two Lithium Battery Factories in the US According to news from CBAT, on April 14, CBAT and KNDI reached a strategic cooperation to plan and construct two lithium battery production bases in the US in phases. Currently, CBAT and KNDI are evaluating site selection options: the first phase will prioritize the construction of a battery pack assembly factory, and subsequent cell manufacturing projects will be advanced based on market conditions. The two projects will be established as joint ventures with differentiated equity structures. About 5 Billion Yuan! Shenzhen Senior Technology Material's First ASEAN Lithium Battery Separator Factory to Open Soon According to Shenzhen Senior Technology Material (300568), on April 16, President Xi Jinping, at the invitation of the Supreme Head of State of Malaysia, Ibrahim Iskandar, paid a state visit to Malaysia. As a representative of local Chinese new energy enterprises, Chen Xiufeng, Chairman of Shenzhen Senior Technology Material, was invited to attend the state ceremony at the Malaysian National Palace and the welcome luncheon. Shenzhen Senior Technology Material announced that it plans to invest about 5 billion yuan to build a high-performance lithium-ion battery separator production base in Penang, Malaysia. Upon completion, it will have a production capacity of 100 million m² of wet-process separators and coated separators. It is reported that this base will be the first lithium battery separator factory in the ASEAN region and is expected to start production in mid-2025. Annual Production of 200,000 mt Electrolyte! Tinci Responds to Progress of US Project On April 16, Tinci (002709) responded to the progress of its US project during an institutional survey. In January 2025, the company signed a cooperation agreement with Honeywell to jointly establish a joint venture, aiming to accelerate the large-scale production of electrolytes and LiPF6 in the North American market. Both parties will jointly invest in the construction of electrolyte and LiPF6 projects, which are currently in the preliminary preparation stage. Tinci stated that the Texas Tinci project, which plans to build an annual production capacity of 200,000 mt of electrolytes, has completed land acquisition and is currently advancing factory design and related environmental assessment procedures. Shanshan Technology and Falcon Jointly Develop Natural Graphite Anode Material Project On April 16, according to "Shanshan News," recently, Shanshan Technology, a subsidiary of Shanshan Co., Ltd. (600884), and Falcon Energy Materials plc. signed a strategic cooperation agreement. Both parties will rely on the Moroccan production base to jointly develop a natural graphite anode material project, accelerating the innovation and upgrade of the global new energy material supply chain. According to the plan, both parties aim to achieve large-scale trial production of natural graphite at the Moroccan base in H2 2025, quickly responding to the global market demand for high-performance anode materials. Chuanjinuo: Plans to Invest 1.934 Billion Yuan in Phosphate Chemical Project in Egypt On the evening of April 17, Chuanjinuo (300505) announced that it plans to build a project in Egypt with an annual production capacity of 800,000 mt of sulfuric acid, 300,000 mt of industrial wet-process crude phosphoric acid, 150,000 mt of 52% phosphoric acid, 300,000 mt of monoammonium phosphate, and 20,000 mt of sodium fluosilicate. The total investment in the project is 1.934 billion yuan, with 1.609 billion yuan for fixed assets and 325 million yuan for working capital, funded by corporate self-raising and bank loans. EVE: Malaysian ESS Factory Expected to Start Mass Production Early Next Year On the evening of April 17, EVE (300014) released its 2024 annual report. The report shows that in 2024, EVE's Malaysian factory ESS project is proceeding as planned, with mass production expected to start in early 2026, supporting global deliveries. Additionally, in the small cylindrical battery segment, the construction of EVE's small cylindrical battery factory in Malaysia is progressing smoothly, with production expected to start in early 2025, further meeting customer demand. Tengyuan Cobalt Plans to Invest Nearly 1 Billion Yuan to Build Copper and Cobalt Smelter in DRC On April 21, Tengyuan Cobalt (301219) announced that to further secure the supply of raw materials for domestic cobalt smelters after the company's expansion and to support its 2022-2026 development plan, the company plans to purchase new land in the DRC to build a hydrometallurgy plant with an annual production capacity of 30,000 mt of copper and 2,000 mt of cobalt. The project investment is 980 million yuan (approximately $136 million), with a construction period of 18 months. ... EVTank reminded that in the face of complex global geopolitics and trade environments, especially the "competitive cooperation" between China and Europe and the "competitive game" between China and the US in the medium and long term, the global expansion of China's battery industry is "going against the wind" and will face more challenges. "Building factories in the US is fraught with difficulties. It is possible to establish factories in other overseas markets, such as building regional supply chains in Southeast Asia (Vietnam, Indonesia) and other regions, utilizing local resources (nickel, cobalt) and low-cost labor to disperse tariff pressures. However, the US 'country of origin principle' restricts the export of Chinese-funded overseas factories. In the medium and long term, it is necessary to be vigilant against the systemic risks brought about by the repeated changes in US policies and the restructuring of the global industry chain." Yu Qingjiao, Secretary General of the Zhongguancun New-type Battery Technology Innovation Alliance, also stated that the geopolitical risks in the US market are too high, and power battery enterprises basically do not consider building factories in the US. To hedge against the impact of high US tariffs, strategies such as technology licensing models, FOB models to transfer tariffs, and expanding emerging markets are mainly used to gradually turn challenges into opportunities to consolidate global leadership.

Samsung SDI Mass-Produces 46-Series Large Cylindrical Batteries South Korean battery manufacturer Samsung SDI announced that the 4695 large cylindrical battery module has been ex-factory from its Vietnam plant. The battery cells are produced at the Cheonan plant in South Korea and assembled into modules in Vietnam. This is the first 46-series large cylindrical battery in the Korean industry to enter mass production, primarily supplying the US market for applications in three-wheeled EVs, small EVs, electric-assist bicycles, and motorcycles. Samsung SDI's mass production plan is expected to be completed more than a year ahead of the original schedule.