In depth research and development of the current situation of China's electrode foil industry

1、 Electrode foil is a critical material required for manufacturing aluminum electrolytic capacitors and is greatly influenced by its market demand

Electrode foil is a critical material required for manufacturing aluminum electrolytic capacitors, accounting for approximately 30% -60% of its total cost (varying with capacitor specifications). It is understood that electrode foil is mainly used for storing charges, known as aluminum electrolytic capacitor CPU. Its performance determines the key technical indicators of aluminum electrolytic capacitors, such as capacity, leakage current, loss, life, reliability, volume size, etc. Meanwhile, as about 95% of electrode foils are used in the production of aluminum electrolytic capacitors, the market demand for aluminum electrolytic capacitors directly determines the market demand for electrode foils.

Aluminum electrolytic capacitor is a type of capacitor that uses aluminum foil as the positive and negative plates. It is known as the vitamin of modern industry and is one of the most commonly used passive components in electronic circuits. In recent years, with the planning and deployment of the "carbon peak" and "carbon neutrality" strategies, the energy structure has accelerated its evolution. China has vigorously promoted the development of the new energy industry, and the market size of industries such as new energy vehicles, photovoltaics, and wind power has continued to expand, driving the growth of the aluminum electrolytic capacitor market size. Data shows that by 2023, the market size of aluminum electrolytic capacitors in China is expected to reach 39.67 billion yuan, a year-on-year increase of 10.6%; The production is approximately 98.394 billion units.

Aluminum electrolytic capacitors are widely used in fields such as electronics, power, communication, and home appliances due to their advantages of small size, large capacity, long lifespan, and low cost. They have broad development prospects in the future. At present, aluminum electrolytic capacitors are the second largest product type in the capacitor market, with a usage rate second only to ceramic capacitors, accounting for about 34%. In this context, electrode foil, as a key material required for manufacturing aluminum electrolytic capacitors, will continue to develop its market.

2、 The outbreak of emerging fields such as new energy vehicles and 5G is expected to become the main driving force for the growth of electrode foil demand in the future

Emerging fields are expected to drive a reversal in demand for electrode foils. Emerging fields (such as new energy vehicles, charging stations, new energy power generation, 5G, big data centers, etc.) will have a faster compound growth rate in the future and will become the main driving force for the growth of electrode foil demand.

For example, new energy vehicles are one of the important application scenarios for aluminum electrolytic capacitors. Although China's new energy vehicles have entered the "post subsidy era" in 2021, the driving force for industry development has shifted from the policy side to the market side, and the penetration rate has exceeded the critical point of 10% and accelerated growth. The annual production and sales growth rate has exceeded 30% for four consecutive years. However, the current vehicle to pile ratio is still relatively low, and it is expected that the popularity of new energy vehicles will drive the synchronous or even accelerated growth of charging pile demand, and accelerate the increase in electrode foil demand.

For example, the demand for 5G base stations has increased. Due to the higher frequency of 5G, the number of base stations may be 2-3 times that of 4G, and communication equipment such as program-controlled switches, servers, routers, and base stations will heavily use aluminum electrolytic capacitors. The acceleration of 5G construction is expected to accelerate the growth of electrode foil demand.

3、 The market size continues to grow and is expected to reach around 20 billion yuan by 2024

In recent years, driven by the growth of the global aluminum electrolytic capacitor market and the gradual tilt of the global electrode foil market towards China, the size of China's electrode foil market has continued to grow. Data shows that the market size of electrode foil in China will reach 18.16 billion yuan in 2023, a year-on-year increase of 14%. It is estimated that the market size of electrode foil in China will continue to grow to 20 billion yuan in 2024, a year-on-year increase of 13.5%.

4、 The current market size of electrode foil is dominated by chemical foil, with a market share of about 95%

Electrode foil can be divided into corrosion foil and chemical foil according to the processing procedure. Due to the fact that corrosion foil is generally used as a semi-finished product of chemical foil, and the market size of corrosion foil used as a cathode (negative electrode) alone is relatively small, the current market size of electrode foil is dominated by chemical foil, which can account for about 95% of the overall market size of the industry.

Anodized foil refers to the product formed by electrochemical action on the surface of corroded foil to form an oxide film (aluminum oxide), which is used as the anode foil for aluminum electrolytic capacitors. Its dielectric properties affect the capacitance of aluminum electrolytic capacitors.

China is a major producer and seller of global foil, accounting for approximately 80% and 70% of the world's production and sales, respectively. Since 2020, the production and sales of chemical foil in China have shown an overall growth trend. Data shows that the domestic production of chemical foil in China was about 213 million square meters in 2020, a year-on-year increase of 9.6%. It is expected that the production will reach 291.9 million square meters by 2025, with a compound growth rate of 6.5% from 2020 to 2025. In 2020, China's chemical foil industry achieved a sales revenue of 10.64 billion yuan, a year-on-year increase of 5.2%. It is expected that the sales revenue will reach 16.263 billion yuan by 2025, with a compound growth rate of 8.9% from 2020 to 2025.

This report is based on authoritative data from sources such as the National Bureau of Statistics, the General Administration of Customs, and the National Information Center, and combines the industry environment to conduct market research and analysis from multiple perspectives, including theory, practice, macro, and micro.

Industry reports are an important decision-making basis for industry enterprises, related investment companies, and government departments to accurately grasp industry development trends, understand industry competition patterns, avoid operational and investment risks, and formulate correct competitive and investment strategic decisions.

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