Among the four key materials of power battery: cathode, anode, diaphragm and electrolyte, electrolyte occupies the two "most": the largest volume share and the smallest cost share. The electrolyte itself consists of four parts: solute, solvent, additives and others, of which the cost of solute is the largest, accounting for about 50%.

Electrolyte

The electrolyte is the carrier of ion transport in the battery and determines the comprehensive performance of the battery. As mentioned above, the ability to control upstream raw materials is crucial for electrolyte companies, so many electrolyte companies are actively extending the vertical extension of the industry chain, such as Tianci materials, Xinzhoubang and other electrolyte industry giants, whose capacity of resolute and additives is also considerable.

Tianci Materials

Tianci materials was established in June 2000 and listed on the Shenzhen Stock Exchange in January 2014. Currently, it has two major business segments: lithium-ion battery materials, daily chemical materials and specialty chemicals. As for lithium-ion battery materials, Tianci materials entered the field of lithium-ion electrolyte in 2005 and is now the world's largest electrolyte supplier, with electrolyte capacity of 150,000 tons/year in 2021.

Tianci Materials has been actively extending its industry chain vertically and horizontally. On the one hand, it has comprehensively laid out its own production capacity of upstream raw materials of electrolyte to achieve stable supply of raw materials and product cost control; on the other hand, it has developed battery recycling industry and acquired downstream battery manufacturers of electrolyte to complete the industrial chain cycle and integrated layout. Tianci materials has signed long-term cooperation agreements with Ningde Times, LG New Energy, Tesla and other famous battery manufacturers, built a national and key international regional strategic supply system, and actively laid out overseas factories in Europe and Korea.

New Zuobang

Founded in 1996 and listed on the GEM of Shenzhen Stock Exchange in 2010, Xinzhoubang focuses on the R&D, production and sales of lithium battery chemicals, capacitor chemicals, organofluorine chemicals and semiconductor chemicals. Xinzhoubang launched its first lithium battery electrolyte product in 2003 and became one of the earliest enterprises in the lithium industry in China; in 2014, the sales of lithium-ion battery electrolyte jumped to the first place in the world; at present, Xinzhoubang is still in the first echelon in the field of lithium-ion battery electrolyte, and its production capacity and market share in the past three years are second only to Tianzhi materials, and it has an electrolyte capacity of 130,000 tons/year in 2021.

Xinzhoubang has built a more comprehensive upstream industry chain layout for electrolyte. In terms of solvents and additives, the supply is stabilized through external acquisition or self-built production capacity; in terms of solutes, Xinzhoubang has signed long-term agreements with suppliers to centralize the procurement of mainstream solute lithium Liu fluorophosphate, and has started to lay out its own production capacity of new lithium salts. In addition, New Zuobang actively carries out overseas layout and sets up factories or R&D centers in Europe, North America, Japan and Korea.

Sansun Co.

Founded in 1992 and listed on the A-share of SSE in 1996 as the first domestic listed garment company, Sansun started to enter the lithium materials industry in 1999, successively laying out anode materials (1999), cathode materials (2003) and electrolyte (2005). After several years of strategic adjustment from diversified layout to business aggregation, Sansun has established the development pattern of double main businesses of anode materials and polarizer, and will gradually divest other non-core businesses.

In terms of electrolyte, the main products of Sequoia are electrolyte and lithium hexafluorophosphate, with a capacity of 40,000 tons/year of electrolyte and 2,000 tons/year of lithium hexafluorophosphate in 2021, and the new capacity of 2,000 tons/year of lithium hexafluorophosphate is expected to be put into operation in the second half of 2022. The main customers of the electrolyte of Sansun share are Yiwei Lithium Energy, Guoxuan Hi-Tech, Fu Energy Technology, Penghui Energy, BAK Battery and other power battery and consumer battery manufacturers.

Xianghe Kunlun

Established in November 2004, Xianghe Kunlun is one of the early enterprises engaged in the research and development and production of power lithium-ion battery electrolyte, with a current capacity of 28,000 tons/year and 40,000 tons/year under construction, focusing on the layout of the capital and the Yangtze River Delta economic zone.

As a veteran power battery electrolyte manufacturer, Xianghe Kunlun has established long-term and stable cooperation with battery companies including Ningde Times, LG, SK, ATL, Yiwei Lithium, Guoxuan Gaoke, Fu Energy Technology, Wanxiang A123, Zhongxing Pai Energy, Ruipu Energy, Suzhou Xingheng, Lixin Battery, Weihong Power and so on. It is expected that in the future, Xianghe Kunlun will focus on the development of new lithium salts, additives and other raw materials, the research and development of all-solid electrolytes, etc., and seek overseas layout.

In terms of capital, Kunlun Materials has successfully completed the share reform in 2021 and completed several rounds of financing. In addition to domestic head investment institutions such as Shenzhen Tongchuangweiye and Qianhai Mother Fund, the company's shareholders include strategic investors such as SAIC, CICC, Dongfeng, Jiangsu Ruihua, Zhejiang Huarui and Zheshang Venture Capital.

Sinochem Blue Sky

Sinochem Blue Sky is a member of Sinochem Group, mainly engaged in R&D, design and production of fluorine chemical products and solutions, and its Zhejiang Chemical Research Institute is one of the largest research and development institutes in Zhejiang Province.

In 2019, Sinochem Blue Sky started to lay out the field of lithium battery materials, and its main products include electrolyte, lithium hexafluorophosphate and PVDF, etc. Currently, it has an annual production capacity of 20,000 tons/year of electrolyte and 4,000 tons/year of lithium hexafluorophosphate. Sinochem Blue Sky has established cooperation relationship with CATL, AVIC Lithium, Guoxuan High Tech, Yiwei Lithium, Lixin Battery, Xinwanda, Xingheng Power and other famous battery manufacturers. As one of the few national team players in the field of electrolyte, Sinochem Blue Sky has developed rapidly in a relatively short period of time and has also gained recognition from head customers and partners.

Sailwell Electronics

Established in June 2007, Sailwell Electronics is engaged in the research and development, production and sales of electrolyte and aluminum-plastic composite film for mid-to-high-end lithium-ion batteries, with an annual capacity of 25,000 tons/year of electrolyte and 2,000 tons/year of lithium hexafluorophosphate.

The main customers of Saiwei Electronics are Tianjing, Luhua Technology, ZhuoNeng New Energy, Thornton New Energy and so on. In terms of capital, Saiwei Electronics has completed three rounds of financing, investors include Huawei Venture Capital, Point Stone Investment, Dade Hongtao. Following the failure of the IPO in 2017, Saiwei Electronics will sprint for IPO again in 2022, and has entered the counseling stage of listing.

Tianjin Golden Bull

Tianjin Jinniu was established in 2001, and is one of the earlier companies doing electrolyte in China. Its products include lithium-ion battery electrolyte, lithium hexafluorophosphate and battery solvent, and its current production capacity includes 10,000 tons/year of electrolyte and 1,000 tons/year of lithium hexafluorophosphate.

The main customers of Tianjin Jinniu are Samsung, Murata, Lixin Battery, Guoxuan High Tech, Jiewei Power, AVIC Lithium, BAK Battery, Haguang Yu, etc. Ltd. (formerly Tianjin Research Institute of Chemical Industry, Ministry of Chemical Industry) with technical participation, and its battery material research institute provides technical support for Tianjin Jinniu.

Shandong Hailong

Established in June 2012, Shandong Hailong is engaged in the research and development, production, sales and related technical services of lithium battery electrolyte and related materials. It has a capacity of 17,000 tons/year of electrolyte and has formed long-term and stable cooperation relationship with battery manufacturers such as Tianjin Lixin, Zhuhai Yinlong and Ocean Power Battery.

Luoyang Dasheng

Founded in 2011, Luoyang Dasheng is dedicated to the research and development, production and marketing of medium and high-end power and functional lithium-ion battery electrolytes, with products mainly of lithium iron phosphate power type and ternary power type (523/622/811), taking into account lithium titanate power type and functional digital type, Penghui Energy, Lixin Battery, BAK Battery and other downstream enterprises to establish cooperative relationships. Luoyang Dasheng has an existing capacity of 18,000 tons/year of power electrolyte, and has a capacity under construction of 100,000 tons/year in Luoyang, Henan Province and 150,000 tons/year in Yichang, Hubei Province.

Solute

The common lithium ion electrolyte solutes in the market are mainly lithium hexafluorophosphate and lithium bis(fluorosulfonyl)imide (LiFSI). Among them, lithium hexafluorophosphate is the most widely used lithium battery solute in commercialization, with good ion mobility and dissociation constant, high electrical conductivity and electrochemical stability, as well as good antioxidant properties and aluminum foil passivation ability, and can match with various positive and negative materials.

The new lithium salt lithium bis(fluorosulfonyl)imide (LiFSI) has many advantages such as high conductivity, high thermal stability, resistance to hydrolysis, and inhibition of battery flatulence, which is widely considered as the ideal lithium salt electrolyte material for lithium batteries. With the gradual maturity of the domestic synthesis process and the successful development of new technology routes, production costs have begun to drop significantly, creating the conditions for the commercialization of new lithium salts. In the environment of high energy density and high safety demand for power batteries, LiFSI, as a supplement to lithium hexafluorophosphate, is gaining its market competitiveness.

Duoduo

Founded in December 1999 and listed on the Shenzhen Stock Exchange in May 2010, Duoduo's products involve high-performance inorganic fluoride, electronic chemicals, lithium-ion battery and related materials production and research and development. In terms of lithium-ion battery electrolyte solute, Duoduo is the global leader in crystalline lithium hexafluorophosphate, with leading production capacity and shipments, second only to Tianchi Materials, whose lithium hexafluorophosphate is mainly for self-use.

By the end of 2021, Duoduo has a high purity crystal lithium hexafluorophosphate production capacity of 20,000 tons/year and 35,000 tons/year under construction, with a total production capacity of 55,000 tons/year by the end of 2022; the existing LiFSI production capacity of 16 million tons/year and the proposed new production capacity of 10,000 tons/year. The main customers include BYD, Sansun, Xinzhoubang, Tianzhi and other mainstream electrolyte manufacturers, and exported to South Korea, Japan and other countries, the main mode of cooperation is to sign long term orders. In terms of industrial layout, Duoduo is involved in the R&D and production of lithium-ion batteries and sodium-ion batteries. Meanwhile, sodium hexafluorophosphate, which matches the electrolyte of sodium-ion batteries, has been commercially mass produced and sold in bulk.

Sky

Founded in March 1996, Sky was listed on the Shenzhen Stock Exchange in May 2015. Its main business is lithium hexafluorophosphate and small home appliance products. Skyline shares in 2016 through a wholly-owned subsidiary Xintai materials layout lithium hexafluorophosphate, the existing capacity of 8,160 tons / year, the first half of 2022 put into production under construction capacity of 10,000 tons / year, the end of 2022 is expected to reach a total capacity of 181.6 million tons / year, the production capacity and shipments in the global scope of the top three.

Tianji's main customers include Ningde Times, Jiangsu Guotai, Xinzhoubang, Tianzhi, BYD, Jinguang, Jinniu, Saiwei and other well-known electrolyte manufacturers. In addition to lithium hexafluorophosphate, Sky has also laid out in electrolyte additives, with an existing additive capacity of 20 million tons/year.

Yongtai Technology

Founded in October 1999 and listed on the Shenzhen Stock Exchange in December 2005, Yongtai Technology is a manufacturer of fluorine-containing pharmaceutical, pesticide and new energy materials with fluorine-containing technology as the core, and its main products are divided into pharmaceutical, pesticide, lithium and other materials according to end-use applications. For lithium materials, Yongtai Technology has an existing capacity of 8,000 tons/year of lithium hexafluorophosphate.

In terms of industrial layout, YPT adheres to the development strategy of "endogenous growth and outward expansion", extending lithium products to upstream lithium fluoride raw materials and downstream electrolyte products, forming a vertically integrated industrial chain from lithium salt raw materials, lithium salt to electrolyte; in the future, YPT will continue to expand the production capacity of lithium hexafluorophosphate, LiFSI and other electrolyte main salts and additives such as VC and FEC. In the future, we will continue to expand the production capacity of lithium hexafluorophosphate, LiFSI and other electrolyte salts and additives such as VC and FEC to form a relatively complete electrolyte material matrix. Yongtai Technology's main customers include Ningde Times, BYD, etc. In 2021, it obtained long orders from head enterprises such as Ningde Times, and successfully introduced Ningde Times as an industrial investor of its subsidiary Yongtai High-Tech.

Shenzhen Nova

Shenzhen Xinxing was founded in July 1992 and listed on the SSE in August 2017. Its main business mainly revolves around new metallic and non-metallic materials added in the processing of aluminum alloy, and the industrial chain links involve the manufacture of fluorine chemical raw materials (anhydrous hydrogen fluoride, lithium hexafluorophosphate, fluoride salt series products) and the manufacture of alloy products (aluminum grain refiner, aluminum boron, aluminum titanium, aluminum manganese and other alloys).

Shenzhen Nova cut into the lithium material lithium hexafluorophosphate field in 2021, the existing capacity of 3800 tons / year, is expected to reach 148 million tons / year by the end of 2022 production capacity. Fluorine salt materials, including lithium hexafluorophosphate, and aluminum alloy products manufacturing form a closed-loop industrial chain, which helps stabilize raw material supply and enhance synergistic effect.

Quzhou Beidouxing

Quzhou Beidouxing was established in December 2015, located in Quzhou City, Zhejiang Province, as a joint venture jointly funded by Japan Stella Chemical Corporation and Quzhou Nangao Summit, with the Japanese party holding the shares. Quzhou Beidouxing is mainly engaged in the production and sales of lithium hexafluorophosphate, with an existing capacity of 1,300 tons/year, an under-construction capacity of 1,300 tons/year and a planned new capacity of 5,000 tons/year.

Morita New Energy

Morita Chemical Industry Co., Ltd. is a leading international manufacturer of fluorine products, which monopolized the global lithium hexafluorophosphate industry with Rexing Chemical and Kanto Denka before 2004. Morita Chemical and Sumitomo Corporation jointly established Morita New Energy in China, and set up companies in Zhangjiagang and Taixing in 2004 and 2017 respectively to engage in the production of lithium hexafluorophosphate. Among them, Zhangjiagang has a capacity of 5,000 tons/year of lithium hexafluorophosphate, while Taixing has a current capacity of 1,250 tons/year, considering that the total capacity of projects under construction and planned will reach 10,000 tons/year by 2025.

Kangpeng Technology

Kangpeng Technology was established in November 1996, the products are mainly new materials and pharmaceutical and pesticide chemicals, in the new energy battery materials currently mainly produce new lithium salts and electrolyte additives. Kangpeng Technology is one of the world's first companies to independently develop and mass-produce the new lithium salt LiFSI, and is also the leader of the development of the Chinese industry standard for LiFSI, with a production capacity of 1,700 tons of LiFSI per year, and has achieved the production and sales of a number of high-performance additives for new energy battery electrolyte such as vinyl sulfate. Kangpeng Technology's main customers are well-known battery material or electrolyte manufacturers and traders at home and abroad, such as Xinzhoubang, Tianshi Materials and Yangzhou Chemical. In terms of capital, following the unsuccessful impact on the Science and Technology Board in 2019, Kangpeng Technology has made another application for listing on the Science and Technology Board in 2022.

Solvents

At this stage, the common solvents for electrolytes are mainly carbonate solvents, including dimethyl carbonate (DMC), diethyl carbonate (DEC), methyl ethyl carbonate (EMC), ethylene carbonate (EC) and propylene carbonate (PC), of which DMC, EMC and EC are the three main solvents, while DEC and PC account for a relatively small amount.

According to the different purity of carbonate solvents, they can be divided into industrial grade and battery grade, and battery grade solvents usually have higher purity and quality requirements. At present, industrial grade solvents are in excess capacity in the market, but cannot be used for electrolyte production; while the supply of battery grade solvents is not saturated, and there are only a few suppliers in the market who can provide five types of solvents in full.

Shida Shenghua

Founded in December 2002 and listed on the SSE in May 2015, Shida Shenghua was formerly a university-run enterprise of China University of Petroleum (East China), a "double-class" university. With 20 years of experience in the carbonate industry, Shenghua has five kinds of electrolyte solvents, lithium salt lithium hexafluorophosphate, lithium borate difluoroxalate and fluorobenzene, and is the largest manufacturer of battery-grade carbonate products in China. The current production capacity of battery-grade carbonate products exceeds 200,000 tons/year, with a global market share of 40% and export volume accounting for 70% of domestic exports.

In 2021, Shida Shenghua will continue to transform from traditional chemical business to new energy and new materials, vertically extend the industrial chain layout around carbonate products, forming a comprehensive one-stop service supply platform for solvents, lithium salts and additives, and planning and constructing several electrolyte projects, which is expected to reach 700,000 tons/year by 2023. The production capacity will reach 700,000 tons/year.

Haike Xinyuan

Established in October 2002, Haike Xinyuan is mainly engaged in the R&D, production and sales of carbonate series lithium-ion battery electrolyte solvents and high-end propylene glycol, isopropyl alcohol and other fine chemicals, with two production bases in Shandong and Jiangsu. It is one of the few manufacturers that can produce 5 kinds of electrolyte solvents at the same time, with a production capacity of 55,000 tons/year of battery-grade carbonate products by 2021.

The main customers of Haike Xinyuan include Tianci Materials, BYD, Guotai Huarong, Sansum, etc. The main overseas customers include famous lithium battery electrolyte manufacturers such as Central Nitrate, Korea Ten Pao, Korea ENCHEM, etc. In terms of capital, Haike Xinyuan had successfully landed on the LSE in 2007 and terminated its listing in 2018. 2022, Haike Xinyuan passed its IPO debut on the GEM of SZSE and has now submitted its registration.

Liaoning Ganglong

Established in June 2005, Liaoning Ganglong is located in Liaoyang City, Liaoning Province, and its controlling party is Hong Kong New Silver International Limited. Liaoning Ganglong is engaged in the research, development and production of organic solvents, including DMC, DEC, EMC, EC and PC. By the end of 2021, Liaoning Ganglong has a production capacity of approximately 20,000 tons/year of battery-grade carbonate products, including 0.3 million tons/year of DEC, 10,000 tons/year of EMC and 0.5 million tons/year of EC.

Aoke

Aoke is a holding subsidiary of Aoke Group, established in January 2000 and listed on SSE in 2010. It focuses on the research and development, production and sales of green and low-carbon fine chemical high-end new materials derived from ethylene oxide and ethylene, and its main products include construction chemicals segment, new energy materials segment, medical and health segment and daily-use chemicals segment. The main products include construction chemicals, new energy materials, medical and health care, and daily-use chemicals. Among them, the new energy materials mainly include EC and DMC, with the existing capacity of 10,000 tons/year of EC and 10,000 tons/year of DMC.

Zhongyan Hongshangsiang

Founded in July 2003, Zhongyan Hongshifang is a wholly-owned subsidiary of China Salt Industry Group Company Limited. Its industrial layout includes coal chemical, salt chemical, fine chemical and new energy, new building materials, etc. As for electrolyte solvent, Zhongyan Redsquare has a capacity of 20,000 tons/year of DMC.

Fushun Dongke

Founded in April 2010, Fushun Dongke is a national high-tech enterprise and a "special-purpose and new" enterprise, focusing on the production of new materials, new energy, medicine and health, with main products including methyl ethyl carbonate, diethyl carbonate series carbonate, polycarboxylic acid water reducing agent monomer and surfactant. For battery-grade carbonate products, Fushun Dongke's existing production capacity includes EMC 0.8 million tons/year and DEC 0.2 million tons/year.

Additives

Electrolyte additives in electrolyte can optimize various properties of electrolyte, such as electrical conductivity, flame retardant performance, overcharge protection, multiplier performance, etc. At present, the mainstream electrolyte additives mainly include vinylidene carbonate (VC), fluorosubstituted vinyl carbonate (FEC), propylene sulfite (PS), and lithium bisoxalate borate (LiBOB). From the shipment point of view, VC and FEC are the most commonly used additives with a combined share of 63.8% of the electrolyte additive market. VC has an additive ratio of 1%-3% and will account for a higher proportion in lithium iron phosphate formulations; FEC has an additive ratio of 2%-10% and will be used in a large number of applications in the field of power batteries with the upgrading of cathode materials.

Huasheng Lithium

Founded in August 1997 and listed on the Science and Technology Board in July 2022, Huasheng Lithium is a high-tech enterprise focusing on the R&D, production and sales of electrolyte additives for lithium-ion batteries. The products mainly include two series of electronic chemicals and special silicones. The main products of electronic chemicals are electrolyte additives represented by VC, FEC and BOB, with an existing production capacity of 5,000 tons/year of VC and FEC, and a leading position with a global market share of about 20% in electrolyte additives.

Huasheng Lithium insists on independent innovation and pays attention to R&D investment, leading the drafting of national standards for VC and industry standards for FEC, which has a strong influence in the industry, and has reached cooperation with well-known domestic and foreign lithium battery industry chain manufacturers, including Mitsubishi Chemical, BYD, Ningde Times, Tianshi Materials, Guotai Huarong, Sansun, etc.

Hankang Chemical

Founded in 2014, Hankang Chemical is a holding subsidiary of electrolyte giant Xinzhoubang. It is engaged in the R&D, production, sales and service of lithium-ion battery electrolyte additives, and its main products include VC, FEC, DTD and other lithium-ion battery electrolyte additives, with a total capacity of 2,300 tons/year of electrolyte additives. The products of Hankang Chemical are mainly supplied to Xinzhoubang, and some of them are also supplied to Guotai Huarong and BYD.

Suzhou Huayi

Founded in July 2000, Suzhou Huayi is a company specializing in R&D, production and sales of electrolyte additives for lithium-ion batteries, with core products of VC and FEC. 3,800 tons/year of total capacity of electrolyte additives are available, and its main customers include Tianzhi Materials, BYD, Sansun, Ruitai New Material, Zhejiang Zhonglan and other large downstream lithium battery and new energy vehicle manufacturers. In terms of capital, Suzhou Huayi became a participating subsidiary of Aoke in 2020 and is currently sprinting for GEM IPO.

Zhejiang Tianshuo

Established in December 2015, Zhejiang Tianshuo is a holding subsidiary of electrolyte giant Tianci Materials, mainly engaged in lithium-ion battery additive materials industry, the main products are CEC, VC, FEC, DTD and other lithium-ion battery additives, the existing VC capacity of 1,000 tons / year, under construction FEC capacity of 2,000 tons / year. Zhejiang Tianshuo's products are mainly supplied to Tianzhi materials for their own use in electrolyte.

Greenwood High-Tech

Founded in January 2012, Aoki High-Tech is a fine chemical company specializing in the research and development, production and sales of functional high-tech materials, mainly engaged in the manufacture and sales of additives for lithium battery electrolyte, with the main products of VC, FEC and 1,3-PS. The main customers include BYD, Seiwei Electronics, Sansun, etc. In terms of capital, Rongcheng Qingmu landed on the New Third Board in 2015 and was delisted in 2018.

Guancheng Datong

Founded in April 1988 and listed on the SSE in 1997, Guancheng Datong's main businesses are real estate development, manufacturing and sales of electromagnetic wire, and production and operation of electrolyte additives for lithium batteries, as well as dabbling in finance and health and wellness. The subsidiary Shaowu Chuangxin is mainly engaged in the R&D, production and sales of electrolyte additives for lithium-ion batteries, and its main products include DTD, TMSP, VEC, DFP, DENE, NPCF, etc. In 2021, Guancheng Datong achieved sales volume of electrolyte additives of about 223 tons.

By sorting out domestic electrolyte and electrolyte raw material (including solute, solvent and additives) suppliers, we find that the competition pattern of each segment has taken shape initially, but there is still no lack of accelerated expanders and active entrants. This is partly due to the booming east wind of the new energy industry, and partly due to the asset-light and low-barrier industry characteristics. Those suppliers who can open up the industrial chain and have a stable supply of raw materials are still able to get the favor of the market gods.