**Power Battery System: Market Trend Analysis**

In recent years, with the vigorous development of the global new energy vehicle industry, the power battery system, as a core component of new energy vehicles, has attracted much attention in terms of market trends. This article will conduct an in-depth analysis of the market trends of power battery systems from aspects such as production and sales of power batteries, technological advancements, market competition patterns, and recycling and utilization.

I. Production and Sales of Power Batteries

In 2024, China's power battery industry showed a booming development trend. Data shows that in November 2024, the total output of power and other batteries in China reached 117.8 GWh, a month-on-month increase of 4.2% and a year-on-year increase of 33.3%. In terms of sales, the performance was equally outstanding, with total sales reaching 118.3 GWh, a month-on-month increase of 7.2% and a year-on-year increase of 40.1%. Among them, power battery sales accounted for 74.2%, reaching 87.8 GWh, showing the huge demand for power batteries in the new energy vehicle market.

From a global perspective, the installed capacity of power batteries has also increased significantly. Data shows that in the first 10 months of 2024, the global total installed capacity of power batteries increased by 25% year-on-year, reaching approximately 686.7 GWh. As the world's largest new energy vehicle market, China's power battery industry has developed rapidly, and domestic installed capacity accounts for a significant share of the global market.

II. Technological Advancement and Innovation

In terms of technological advancement, the power battery industry has achieved significant results. Ternary lithium batteries have made progress in the direction of high nickel content; the energy density of high-nickel ternary batteries developed by some companies has exceeded 300 Wh/kg, significantly increasing the cruising range of new energy vehicles. Lithium iron phosphate battery technology is also constantly innovating; through structural optimization and material modification, the energy density has been improved, and the cost advantage has been further highlighted, with wide applications in energy storage and some passenger vehicle fields.

In addition, solid-state battery research and development has become a hot topic. Many companies claim to have made key technological breakthroughs, and the energy density of some solid-state battery samples exceeds 400 Wh/kg. Although there are still challenges before mass production, it is expected to become an important direction for future power battery technology development. In terms of battery thermal management systems, companies and research institutions have increased R&D investment, using new cooling media and optimized thermal management structure design to effectively improve battery heat dissipation efficiency and high-temperature stability.

III. Market Competition Landscape

The competition in the power battery market is fierce, and the industry concentration is continuously increasing. Leading companies such as CATL and BYD occupy a dominant position in the market due to their technological, scale, and Brand advantages. In the European market, affected by stricter carbon emission regulations, the sales of new energy vehicles have increased, and the demand for power batteries has increased simultaneously. Local companies and Asian battery companies are accelerating cooperation and competition layout. Driven by policy incentives and automotive industry transformation, the potential of the US power battery market is gradually being released, attracting many companies to invest in factory construction.

However, with the intensification of market competition, the "Price war" in the power battery industry chain is fierce. According to the prediction of Goldman Sachs, a world-renowned investment bank, the average Price of power batteries has dropped from US$153/kWh in 2022 to US$149/kWh in 2023, and is expected to drop to US$111/kWh by the end of 2024. This further compresses the profit margins of enterprises, and cost control has become a common challenge faced by major enterprises.

IV. Recycling and Utilization of Power Batteries

With the gradual retirement of early new energy vehicle batteries, the market size of power battery recycling is rapidly growing. Recycling and utilizing power batteries not only conforms to the environmental protection concept of new energy vehicles but also helps to recycle lithium, cobalt, and other mineral resources, reducing reliance on natural resources. It is predicted that by 2030, the total decommissioned amount of power batteries in China will reach 380.3 GWh, and the average annual compound growth rate (CAGR) from 2021 to 2030 will be as high as 48.9%.

Currently, after the scrapping of power batteries in China, consumers usually return the batteries directly to 4S stores or recycling network stores. Some network stores cooperating with battery recycling companies will sell the batteries to cooperating battery recycling companies for dismantling, recycling, or cascade utilization. Building a perfect recycling system has become an important task for industry development.

In summary, the power battery system market shows a trend of continuous growth in production and sales, continuous technological advancement and innovation, increasingly fierce market competition patterns, and expanding recycling and utilization scale. Facing the future, power battery companies need to seize the opportunities and meet the challenges by adapting to the times and innovating.