On November 27, the National Bureau of Statistics released the profit data of industrial enterprises above the national scale from January to October, 2024.

Data show that from January to October, the total profit of industrial enterprises above designated size nationwide reached 5868.04 billion yuan, down 4.3 percent year-on-year (calculated on comparable basis); The operating income reached 110.96 trillion yuan, up 1.9 percent year-on-year.

Among them, the profit of high-tech manufacturing industry increased by year-on-year in October, which was 22.9 percent age points higher than the standard industrial average. Profits in the lithium-ion battery manufacturing industry increased by 39.4 percent year-on-year.

Lithium battery manufacturing the year-on-year increase in profits is mainly due to the reduction of costs, the promotion of start-up and the promotion of the process of high-end, intelligent and green manufacturing.

In terms of cost, after entering 2023, the price of upstream raw materials of lithium batteries has entered a slump stage, and by the end of 2023 it has dropped from 512000 yuan/ton to 96900 yuan/ton. At present, the price of lithium carbonate is still maintained at 7-80000 yuan/ton, adding factors such as oversupply, which jointly promotes the downward trend of upstream raw material prices.

A McKinsey report predicts that by 2026, the cost of electric vehicle batteries will drop by nearly 50%, and the price is expected to drop from $149/kWh in 2023 to $80/kWh.

in terms of start-up, the terminal market rebounded in the second half of the year, especially the demand for new energy vehicles in the third quarter rose month on month. According to Ningde times three quarterly report, in the third quarter of this year, Ningde times battery shipments exceeded 120GWh, up 15% from the previous quarter.

Ningde times said that the battery capacity utilization rate in the third quarter was relatively saturated, and it is expected to further improve in the fourth quarter.

In terms of manufacturing, intelligent manufacturing of lithium batteries is the future development trend. Through the application of automation and intelligent technology, the production efficiency of lithium batteries has been significantly improved, reducing labor costs and time costs.

In addition, last year's low base may also have an impact on this year's profit growth. However, the lithium battery industry has stepped out of the lowest point of inventory removal. With technological progress and clear production capacity, the lithium battery industry still has the opportunity to create the next industrial cycle.