Senior(SZ:300568)2022-12-06 02:36Production Capacity - In 2016, the company's dry process capacity was 130 million square meters, and wet process capacity was 26 million square meters. By the second half of 2017, Hefei Xingyuan is expected to release approximately 35-40 million square meters of wet process capacity, while the Shenzhen South China base will release about 25 million square meters of dry process capacity. After the completion of Hefei and Changzhou bases, the total capacity (including both dry and wet processes) is expected to reach 700-800 million square meters [3]. Raw Material Impact - The main raw materials for lithium-ion battery separator production are polypropylene (PP) and polyethylene (PE), primarily imported from overseas. The price trends of PP and PE are closely related to oil prices, and the company's raw material costs account for a significant portion of product costs [3]. Equipment and Technology - The production equipment for lithium battery separators requires high precision and is mainly imported from Germany, with some components sourced locally for assembly. The company’s dry process technology is benchmarked against Celgard from the USA, while the wet process is compared to Asahi Kasei from Japan [5]. Market Trends - The cost of lithium battery separators is expected to decline, reflecting the decreasing prices of electric vehicles and batteries. The separator's cost share in battery production has decreased from 20-30% to around 10% [4]. Supply Chain and Partnerships - The company supplies LG with products exclusively for its factories in South Korea, and the partnership remains stable despite geopolitical concerns. LG's end customers are primarily in the European and American markets [5].