RealLi: Analysis of the Lithium-ion Battery in the Power Tools Industry
Tenpower’s major customers in the power tool industry includes Bosch, Stanley Black & Decker, Techtronics Industries etc. Power tools, due to its adverse working conditions, have high requirements for its battery cells, especially in criteria such as thermal tolerance, vibration adaptation and fast charging. Power tool battery cells have proven to be a great challenge for most battery cell manufacturer.
In 2018, according to the statistics of the real lithium research on the market, lithium-ion batteries in the power tool market have basically completed the replacement of other secondary batteries such as nickel-cadmium batteries and nickel-hydrogen batteries. With the development of power tools, they are becoming smaller and lighter. The trend of cordlessness has made the development of lithium batteries in the field of power tools very rapid.
Electric tools refer to tools that are held by hand, use low-power motors or electromagnets as power, and drive the working head through a transmission mechanism. According to the type of power, they can be divided into traditional electric (corded) and rechargeable ( There are two types of cordless power tools. Before 2010, corded power tools have always occupied the leading position in the market due to mature production technology and technology, low cost and other characteristics. Although the market for cordless power tools started relatively late, but with the downstream The demand for convenience, and the gradual reduction of battery costs have made the development of cordless power tools faster and faster. From about 30% of the entire power tool output in 2011 to nearly 50% in 2018, the development is very rapid.
Data source: National Bureau of Statistics, Real Lithium Research
From the perspective of global and China’s total output, the overall downstream demand growth rate has gradually stabilized. The application of lithium batteries in power tools should still have a relatively good growth rate within 5 years. There are two main reasons. One is electric The development trend of miniaturization and convenience of tools. Second, the use of lithium batteries in power tools has grown from 3 strings to 6-10 strings. The increase in the number of single products used will also bring a larger increase, and some power tools There is also a spare battery.
In addition to the promotion of market demand, the lithium-ionization of power tools has also received support from some countries in terms of policies. In January 2017, the European Union issued new regulations. The nickel-cadmium batteries used in wireless power tools will be fully delisted in the European Union. In November 2017, according to the industry standard preparation plan issued by the Ministry of Industry and Information Technology of China, China initiated electric Lithium ion batteries and battery pack specifications for tools solicit comments.
Data source: true lithium research
From the perspective of total installed capacity, the compound growth rate of global and Chinese installed capacity from 2011 to 2018 reached 44% and 41% respectively, faster than the growth rate of power tool output. In 2018, the global demand for lithium battery power tools is 7.26GWh, which is expected In the next few years, the growth rate of installed capacity will fluctuate around 10%, and it will stabilize by 2025.
At present, the application of cordless power tools is mainly in the European and American markets, and the industry competition pattern is relatively stable. Large companies such as Makita, Baide, Innovation Technology, Ph.D., and Bao Shide occupy the main market share. Most of them use Samsung SDI and LG Chem. For the cylindrical lithium batteries of Korean companies, domestic supplier Jiangsu Tianpeng (TENPOWER) has the most prominent shipment.
Global installed share of lithium battery power tools in 2017
Global installed share of lithium battery power tools in 2018
Data source: Japan B3, true lithium research
From the perspective of the installed capacity of various lithium battery companies in the world, the top four are Samsung SDI, LG Chem, Murata, and Jiangsu Tianpeng (TENPOWER), which together accounted for 84% in 2018. Jiangsu Tianpeng ranked fourth. Peng (TENPOWER), accounted for 9.76% in 2018.
From 2017 to 2018, among the top five companies, with the exception of LG Chem and Jiangsu Tianpeng (TENPOWER), the remaining market shares declined slightly. Among them, the largest increase was Jiangsu Tianpeng (TENPOWER). ), rose from 6.52% to 9.76%, and achieved shipments of 708.9MWh in 2018. Jiangsu Tianpeng (TENPOWER) achieved large-scale stable production of the NCA high nickel system as early as the end of 2017, and has passed the verification of major international brands, while other manufacturers have not yet entered the arena.
For lithium batteries used in power tools, there are still some misunderstandings in the market. You may think that automotive power battery technology is a higher, sophisticated, and cutting-edge technology. In fact, the lithium batteries used in power tools need to meet the requirements of extreme high and low temperature environments. To use, and to adapt to strong vibration, fast charging and quick release, and the protection design is relatively simple, these requirements are not lower than the vehicle power battery, so it is actually very challenging to make high-performance, high-rate batteries. It is precisely because of these harsh conditions that it was not until recent years that major international power tool brands began to use domestic lithium batteries in batches after years of verification and verification. At present, the main foreign customers of Jiangsu TENPOWER power tools include Bosch, Black & Decker, Innovative Technology, etc. In addition to the top three international customers, other manufacturers have also made small contributions. In addition to Jiangsu Tianpeng, several domestic lithium battery companies have entered the supply chain of international power tool giants. At the same time, many power battery companies have also begun to deploy the power tool lithium battery market. However, because power tools have very high requirements for batteries, The certification phase is relatively long, so most of them have not entered the supply chain of power tool companies with large international shipments.
Although lithium batteries have broad prospects in the power tool market, they are better than power batteries in terms of price (10% higher than power batteries), profit and remittance speed, but international power tool giants choose lithium battery companies Very picky, not only requires a certain scale in production capacity, but also requires mature high-nickel cylindrical NCM811 and NCA production processes in terms of R&D and technical strength. Therefore, for companies that want to transform into the power tool lithium battery market, it is difficult to enter the supply chain system of the international power tool giants without technical reserves.
In general, before 2025, the application of lithium batteries in power tools will grow rapidly. Whoever can occupy this market segment first will be able to survive the accelerated reshuffle of power battery companies.
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