Core Viewpoint - The article discusses the growth and trends in the Chinese lithium battery separator market, highlighting significant increases in shipment volumes and the evolving applications of wet and dry separators. Group 1: Market Overview and Trends - In the first half of 2025, China's separator material shipment volume is projected to reach 13.6 billion square meters, representing a year-on-year growth of 49% [4] - Wet separators are expected to account for 11.2 billion square meters of this volume, with a year-on-year increase of 58%, capturing 82% of the market share [4] - Dry separators are anticipated to ship 2.4 billion square meters, showing an 18% year-on-year growth [4] - The total shipment volume for lithium battery separators in China is expected to exceed 29 billion square meters in 2025, with a growth rate of over 30% [4] Group 2: Product Applications and Innovations - The increase in shipments of large-capacity energy storage cells, such as 314Ah, is driving the application of wet separators [7] - New generation large-capacity energy storage battery products (500+/600+Ah) are accelerating the thickness reduction of wet separators from 9μm to 7μm [7] - High puncture strength 5μm products are now being widely used, with monthly shipments exceeding 100 million square meters [7] - The second generation of high puncture strength 5μm separators has been sent to battery customers for testing, achieving a puncture strength close to 500gf [7] Group 3: Pricing and Cost Trends - The price of dry separator base films has remained at cost levels for nearly two years, leading to significant losses for many dry separator companies, with potential price increases expected in the second half of the year [7] - In Q2, the price of wet separator base films saw a decline of over 10% compared to the previous quarter, with expectations for prices to stabilize at current levels for the remainder of the year [7] - Overall, separator prices are projected to show a downward trend throughout the year [7] Group 4: Capacity and Industry Dynamics - The industry's enthusiasm for capacity expansion is decreasing, with expectations for new capacity additions to remain between 4-6 billion square meters per year over the next 2-3 years [7] - The slowdown in capacity expansion, combined with the rapid growth in downstream lithium battery demand, is expected to increase the industry's capacity utilization rate by 3-6 percentage points annually [7]