Core Insights - The 18650 cylindrical battery, with its long development history, is increasingly recognized for its application value in diverse market demands and technological changes [1][7] - The global cylindrical battery shipments are projected to reach 151.2 GWh in 2024, representing a 24% year-on-year growth, with expectations to grow to 172.4 GWh in 2025, a 14% increase [1][4] Market Trends - The 18-series and 21-series cylindrical batteries continue to dominate the market, accounting for 52% and 43% of the market share in 2024, respectively [4] - The main application areas for cylindrical batteries include electric vehicles, electric two/three-wheelers, power tools, small storage (home/portable), and 3C devices [4] Technological Advancements - The introduction of full-tab technology is accelerating the performance enhancement of the 18650 battery, with Chinese manufacturers like BAK Battery gradually replacing Japanese and Korean companies as mainstream suppliers in the cylindrical battery market [6][9] - BAK Battery's full-tab 1865 D series product features six key characteristics: high safety, high power, long endurance, long cycle life, fast charging, and wide temperature range, significantly improving performance compared to traditional products [9][11] Growth Opportunities - The deployment of distributed backup power sources in data centers is driving demand for BBU (Battery Backup Unit), with NVIDIA's NVL72 server requiring approximately 1,000 cells, potentially creating a demand for 50-60 million cells by 2025 [8] - The penetration rate of BBU in data center servers is currently only 5%, indicating significant growth potential as the AI server market expands [8] Competitive Landscape - Chinese battery companies are rapidly gaining market share in the cylindrical battery sector, particularly in electric tools and lightweight electric vehicles, with BAK Battery ranking seventh in the 2024 China 18650 cylindrical battery shipment list [9] - The continuous expansion of market share is driven by technological innovation and market demand, with BAK Battery leveraging long-term technological accumulation and full-tab process innovation to enhance product performance [9][11]