Lithium-ion batteries are batteries that use lithium metal or lithium alloy as the positive electrode material and non-aqueous electrolyte solution as the electrolyte. It is the battery with the highest energy density and the best overall performance in the secondary battery technology. Since the establishment of the company, the market share has increased year by year. Compared with other rechargeable batteries, lithium-ion batteries have the advantages of high energy density, high voltage, long life, and no memory effect. Following LEDs, lithium-ion batteries have become another industrial product that has won the Nobel Prize for Applied Technology.

　　UBS New Energy Fund Manager Shi Cheng said that at present, lithium-ion batteries have become an important carrier of industrial civilization. From mobile phones and laptops to today's electric vehicles and energy storage products, the core of energy supply comes from lithium-ion batteries. In the future era of clean energy, the storage and application of electrical energy cannot be separated from lithium-ion batteries.

　　According to the application, lithium-ion batteries can be divided into three categories: consumer lithium-ion batteries, power lithium batteries and energy storage batteries. Consumer-grade lithium-ion batteries are mainly used in products such as 3C. In recent years, as the global rise of smart phones and other products has slowed, the rise of consumer-grade lithium-ion batteries has narrowed. The industry generally believes that power lithium-ion batteries are an important driving force for the rise of the lithium-ion battery market in the future. According to the data of OFweek Industry Research Center, my country's lithium-ion battery industry maintained a rapid rise in 2018. The annual lithium-ion battery market exceeded 100GWh, a year-on-year increase of 34%, mainly due to the rapid rise of power lithium batteries.

　　Guotai Junan believes that power lithium batteries have become the largest application field. Stimulated by the subsidy policy, my country's new energy automobile industry has shown a trend of rapid development. Since the State Council announced the "Energy-saving and New Energy Automobile Industry Development Plan" in 2012, financial subsidies, tax reductions and other measures have enabled my country's new energy automobile industry to flourish. At the same time, considering my country's complete industrial chain layout and material advantages in the field of power lithium batteries, my country's new energy vehicle sales have always been in a leading position in the world. In 2018, my country's new energy vehicle sales reached 1.256 million units, a year-on-year increase of 61.7% and 16 times that of 2014. From January to August 2019, the cumulative sales of new energy vehicles reached 793,000, a year-on-year increase of 32%. With the gradual cancellation of financial subsidies, my country's two-point policy will further guide the development of new energy vehicles from the perspective of marketization.

　　Globally, developed countries such as Germany and Sweden have announced a timetable for banning fuel vehicles. At the same time, traditional time-honored automobile companies such as Mercedes-Benz and Toyota are also increasing their layout in the field of new energy vehicles. In the current era of energy reform, the electrification of automobiles has become a general trend. In recent years, my country's lithium-ion battery industry has developed rapidly. According to statistics from the my country Chemical Industry (Cuba 601117) and the Physical Power Industry Association, the operating income of lithium-ion batteries in my country in 2018 was 172.7 billion yuan, an increase of 8.7% from the 158.9 billion yuan in 2017. The production of lithium-ion batteries increased by 23.1% from 100.9 GWh to 124.2 GWh. At the same time, the lithium-ion battery industry chain is relatively complete. Wind Information said 92 listed companies are involved, from upstream raw materials to downstream batteries.