Xin Lang Cai Jing·2025-12-29 02:49Core Viewpoint - The lithium battery separator industry is experiencing a wave of mergers and acquisitions, with companies like Enjie and Fospower actively pursuing integration and expansion, while also initiating price increases due to rising demand and limited production capacity [1][2][3] Mergers and Acquisitions - Enjie plans to acquire 100% of Zhongke Hualian through a share issuance, aiming to enhance its production capabilities and reduce costs [2][14] - Fospower's acquisition of Jinli has been approved, allowing it to enter the lithium battery separator market and improve profitability [2][14] - Analysts suggest that current market conditions allow leading companies to acquire quality assets at lower costs, as the industry shows signs of stabilization [2][14] Price Increases and Demand - The separator industry has seen a tightening supply since late October, with leading companies operating at full capacity and orders spilling over to smaller manufacturers [4][16] - The current price increases are well-accepted by customers, with most clients experiencing varying degrees of price hikes [4][16] Supply and Demand Balance - The demand for power batteries and energy storage is expected to grow, while the willingness to expand production in the separator industry remains low, leading to a potential balance in supply and demand [5][17] - By 2026, global demand for power batteries is projected to reach 1704 GWh, with a year-on-year growth of 19.5%, while energy storage demand is expected to rise to nearly 1000 GWh, with a growth rate of about 64% [5][18] Industry Dynamics and Capacity Constraints - The separator industry is characterized by high fixed asset investments and long payback periods, with a single wet separator production line costing around 200 million yuan and taking 1.5 to 2 years to become operational [7][19] - Companies are currently focused on optimizing existing capacity rather than expanding, with many firms agreeing to limit new capacity to avoid oversupply [7][20] Competitive Landscape and Product Innovation - The competition in the separator industry is shifting from scale and price to technology innovation and product performance, with a focus on developing ultra-thin and high-strength separators [9][21] - The industry is moving towards 5μm ultra-thin separators, which are becoming critical for battery performance, with significant technical barriers to mass production [10][22] Global Expansion and Market Opportunities - Companies are increasingly looking to international markets for growth, with Enjie and other firms establishing production bases in Hungary, the U.S., and Malaysia to capture higher margins and expand their market share [11][24]