New Energy- --Heat continues to rise, reshaping the economic landscape

1. Current Status of New Energy Popularity

The popularity of new energy continues to rise in today's society, showing remarkable performance. In the new energy vehicle market, sales have increased significantly. During the "Golden Week" holiday, customer traffic at 4S stores in many places has increased significantly, with new energy vehicles becoming the preferred choice for many consumers. Some stores even experienced sold-out inventory and the need for reservations. In September, the new energy vehicle market was also very hot, with the sales of new energy vehicles from many car companies exceeding 30%, and the number of new energy vehicles delivered by emerging car companies exceeding 10,000.

At the same time, the number of new energy vehicle companies continues to increase. On one hand, environmental pressures are driving companies to enter the new energy vehicle field. With global environmental issues becoming increasingly serious, governments around the world are imposing more restrictions on traditional fuel vehicles. On the other hand, there is strong market demand, as consumers' awareness of environmental protection and energy conservation increases, leading to a higher demand for new energy vehicles. In addition, technological advancements provide technical support for companies, with battery technology continuously improving, resulting in increased driving range and performance for new energy vehicles. There is also strong policy support, with governments around the world increasing their support for new energy vehicles through subsidies, tax reductions, and other policies. Capital is also flocking to new energy vehicles, with a large amount of capital entering the sector and increasing the number of companies in this field.

2. Reasons for the high popularity of new energy sources

(1) Policy Promotion
The country vigorously promotes the development of new energy and has introduced a series of policies. With an increasing number of new energy companies, this is closely related to the active promotion of new energy policies by the country. Currently, the country leads in green energy, green electricity, and green power policies, which have led to explosive growth in industries such as photovoltaic power generation and energy storage. For example, the "Implementation Plan for Promoting High-Quality Development of New Energy in the New Era" proposes 21 specific policy measures in 7 aspects such as innovative development and utilization models for new energy, providing strong support for the good and rapid development of new energy. The support of these policies has provided a solid backing for the development of the new energy industry.

(2) Entry of Industry Giants
Industry giants from various sectors have entered the new energy race track, demonstrating their optimism about this field. Giants such as Liansu and Shandong Luneng Group have increased their investments in the new energy sector. Hengli Petrochemical has increased its investment in the chemical new energy materials market, introducing 12 wet lithium battery separator production lines from Japan's Shibaura Machinery Co., Ltd. and Qingdao Zhongke Hualian New Materials Co., Ltd., with an annual production capacity of 1.6 billion square meters. Shenghong Petrochemical has put into operation a 100,000-ton carbon dioxide green methanol production unit in Lianyungang, providing reference for the industry's green transformation. Tongkun Group and Zhongke Guosheng successfully conducted a pilot test of the bio-based furan polyester fiber cooperation project, laying out bio-based materials. The entry of these industry giants has brought strong financial, technological, and resource support to the new energy industry.

(3) Cost Reduction
The cost of upstream components and batteries is decreasing, as well as the cost of building stations. With technological advancements and the expansion of industrial scale, the cost of power batteries is rapidly decreasing. Taking an electric vehicle with a 60 kWh battery as an example, if the price of lithium carbonate rises by 10,000 yuan per ton, the cost of the entire vehicle will increase by 3,500 to 4,500 yuan. Conversely, when the price of lithium carbonate falls, the manufacturing cost of electric vehicles will also decrease accordingly. At the same time, the reduction in station construction costs has provided favorable conditions for the development of the new energy industry.

(4) Favorable for Enterprises
For enterprises, new energy brings many benefits. On one hand, enterprises can enjoy discounts on electricity bills without having to pay, reducing operating costs. On the other hand, the income of employees has also increased, with intermediary fees ranging from 100,000 to 500,000 yuan, and intermediary income has also increased. This has attracted more enterprises to invest in the field of new energy, promoting the development of the new energy industry.

(5) Product Advantages
New energy vehicles surpass traditional fuel vehicles in performance, design, and intelligence, and car companies pay more attention to consumers. New energy vehicles comprehensively surpass traditional fuel vehicles in performance, have cooler designs, and make rapid progress in intelligence. Additionally, new energy car companies do not overprice their products, use high-quality materials, and provide an excellent user experience. For example, a new energy vehicle priced at over 200,000 yuan can provide consumers with Napa leather seats, full wood trim, fur, electric suction doors, electric seats, heated steering wheel, massage, ventilation, and air suspension. In addition, new energy vehicles have strong power, fast electric drive, and combined kinetic energy recovery, making it easy to achieve a harmonious relationship between the driver and the vehicle. They are also particularly quiet, without the smell of gasoline, and the car's interactive system and intelligent driving system have improved the driving experience. These advantages have made new energy vehicles increasingly popular among consumers.

3. The impact of new energy on the economy

(1) Direct Impact
The rapid development of new energy vehicles has directly and significantly impacted the economy. The production and sales of new energy vehicles have driven the upgrade and expansion of the entire automotive industry chain. In the manufacturing process of new energy vehicles, the production of core components such as batteries, motors, and electronic controls, as well as the assembly of the vehicles, have not only promoted traditional automotive parts enterprises to transition into the new energy field, but also led to the emergence of a batch of emerging enterprises focusing on the research and production of new energy vehicle components. For example, with the growth in sales of new energy vehicles, battery manufacturers have increased their research and development investment, improved battery performance and capacity, and promoted the advancement of battery technology.
At the same time, the development of the new energy vehicle industry has created a large number of job opportunities. From research and development design positions to frontline manufacturing workers, from sales and service personnel to infrastructure construction and maintenance personnel such as charging stations, it covers multiple fields and specialties. According to statistics, producing one new energy vehicle can create approximately 5 to 10 related job positions. This is of great significance for alleviating employment pressure and promoting economic stability and development.
(2) Indirect Impact
The development of new energy vehicles has also promoted the integration of industries such as electronics and information technology with the automotive industry. With the trend towards intelligence and connectivity becoming important in the development of new energy vehicles, the application of the electronics and information industry in the automotive field is becoming increasingly widespread. For example, vehicle intelligent systems, autonomous driving technology, etc., all require the support of the electronics and information industry. This integration not only enhances the added value of new energy vehicles but also brings new development opportunities for the electronics and information industry.
Furthermore, the popularization of new energy vehicles helps improve the energy structure and promote the transformation and upgrading of the energy industry. New energy vehicles mainly use clean energy such as electricity and hydrogen, reducing dependence on traditional petroleum energy. This has driven the development of the power industry, accelerating the construction of new energy generation projects such as photovoltaic and wind power, while also promoting advances in energy storage technology to meet the charging needs of new energy vehicles. The transformation and upgrading of the energy industry will improve energy utilization efficiency, reduce energy costs, and provide strong support for sustainable economic development.
(3) Industrial Agglomeration
The development of the new energy industry has formed numerous industrial parks, which have become important forces driving economic development. Within these industrial parks, cooperation and communication between enterprises are closer, enabling resource sharing and complementary advantages. For example, the Taizhou New Energy Industry Park holds themed salon events for entrepreneurs during the Mid-Autumn Festival, providing a platform for government-enterprise exchanges, listening to business opinions and suggestions, and helping companies solve problems.
The formation of industrial parks has also increased industrial supporting capabilities and production efficiency. Concentrating enterprises in the park facilitates collaboration between upstream and downstream companies, reducing logistics costs and time. Additionally, the infrastructure and public service facilities within the park are more complete, providing a good development environment for enterprises. For example, the new energy industry park strives to promote high-quality industrial economic development through "knowing potential, accumulating potential, and borrowing potential," initiating plans to support the development of industrial enterprises, and promoting the development of leading enterprises such as Longi Solar, with sales exceeding 5 billion yuan.
The development of industrial parks has driven regional economic growth. It has attracted a large amount of investment and talent inflow, promoting the development of industries such as commerce and services in surrounding areas. For example, based on high-quality development, the Xingtai Economic Development Zone in Hebei Province adheres to the concept of prioritizing the development of the new energy industry, relying on the construction of industrial parks, and has initially formed a new pattern of enterprise transformation and upgrading with the characteristics of new energy equipment manufacturing, gathering nearly 20 new energy enterprises whose products are selling well domestically and are exported to Europe, Southeast Asia, and other regions.
(4) Export Opportunities
Domestically produced new energy vehicles are accelerating their entry into the international market, bringing new export opportunities to China. In recent years, the export volume of Chinese new energy vehicles has continued to grow. In the first half of 2024, the export volume of Chinese new energy vehicles reached 605,000 units, a year-on-year increase of 13.2%. China's market share of new energy vehicles in the global market has reached 60%, accelerating its globalization process.
The export of new energy vehicles has increased China's export volume and enhanced its international competitiveness. For example, in July 2024, the export amount of Chinese vehicles increased by 14.32%, achieving a "great turnaround" from negative to positive. After surpassing Japan to become the world's largest automotive exporter in 2023, China's automotive industry once again surpassed Japan in the first half of 2024. Some Chinese automakers such as BYD, Chery, and Great Wall Motors have formed fleets and accelerated their entry into the "independent shipping" new stage, providing strong support for the export of new energy vehicles.
The export of new energy vehicles also promotes the internationalization of China. By expanding into international markets, Chinese enterprises can learn from and draw on international advanced technology and management experience, enhancing their innovation capabilities and core competitiveness. At the same time, it also helps strengthen economic cooperation and cultural exchanges between China and other countries, enhancing China's position and influence in the global economy.

4. Current hot areas in new energy

(1) Green Transportation
The development of electric vehicles in the field of new energy transportation has been rapid, and China has been the world's largest new energy vehicle market for eight consecutive years. In 2022, the national sales of new energy vehicles reached 6.887 million units, with a penetration rate of 25.6%. New technologies and products such as sodium-ion batteries, lead-carbon batteries, and solid-state batteries continue to emerge, driving industry innovation and development. Although fuel cell vehicles are in the stage of market introduction, under policy guidance, production and sales are expected to increase rapidly in the coming years. In 2022, China's sales of hydrogen fuel cell vehicles reached 3,367 units, with commercial vehicles accounting for over 90%, and a total of 358 hydrogen refueling stations have been built, ranking first globally. Green ships have also become a new trend in shipping. Under the global trend of carbon reduction, driven by the dual demand for the electrification of existing ships and the addition of new electric ships, electric ships with significant advantages such as "zero noise, low emissions" have become a new trend in shipping. The Ministry of Industry and Information Technology of China, the National Development and Reform Commission, and other five ministries jointly issued the "Implementation Opinions on Accelerating the Green and Intelligent Development of Inland Waterway Vessels," clearly proposing to vigorously develop green and intelligent ships, strengthen the use of hybrid power for ships, LNG power, battery power, ammonia fuel, hydrogen fuel, and other low-carbon clean energy equipment, accelerate the research and development and demonstration application of the new generation of green and intelligent ships.

(2) Green Buildings
Green buildings, based on green concepts in the process of architectural design, construction, and operation, comprehensively use various environmentally friendly materials and energy-saving technologies to achieve the harmonious coexistence of people, buildings, and nature. The carbon emissions from the entire life cycle of buildings in China account for more than 50% of the total national carbon emissions, with the carbon emissions during the operation phase of buildings accounting for 22%. The efficient utilization of local renewable energy for building operation will become an important aspect of achieving the goals of green buildings. Mainly through various methods such as "installable" solar photovoltaic buildings, integrated photovoltaic buildings, etc., to build a micro-circulating energy system centered on energy storage and multi-energy complementarity.

(3) Green Agriculture
Green agriculture promotes agricultural development, increases farmers' income, and promotes the coordination of agricultural production and ecological protection. In 2022, the National Energy Administration, the Ministry of Agriculture and Rural Affairs, and the National Rural Revitalization Bureau jointly issued the "Implementation Opinions on Accelerating the Transformation of Rural Energy to Support Rural Revitalization," proposing to carry out "photovoltaic +" agriculture such as centralized wind power, photovoltaic base construction, and the development of forest-light complementarity and pasture-light complementarity according to local conditions. By 2025, a number of rural energy green and low-carbon pilot projects will be completed, and the proportion of wind power, solar energy, biomass energy, geothermal energy, and other renewable energies in rural energy will continue to increase, accelerating the green transformation and development of the energy structure in rural areas, and continuously expanding the market scale of the new energy + industry. By utilizing wind energy, solar energy, biomass energy, and other new energy sources, promoting the use of green and low-carbon agricultural production equipment, such as agricultural drones, can greatly improve production efficiency.

(4) Green Manufacturing
Building a low-carbon and environmentally friendly supply and demand system, enhancing the market competitiveness of products, and promoting the green transformation of the manufacturing industry. For example, the EU has implemented the world's first Carbon Border Adjustment Mechanism (CBAM) law, which calculates and charges the carbon emissions content of imported goods separately. The first batch of regulated industries and products include steel, cement, fertilizers, aluminum, electricity, and hydrogen. The levy price is determined comprehensively based on the differences between the carbon emission rights prices and the implied carbon emissions of goods between the EU and the exporting countries, which will indirectly enhance the market competitiveness of energy-saving and low-carbon products. In the future, as major economies gradually make low-carbon products the core of shaping industrial competitive advantages, renewable energy sources such as wind power, solar power, hydrogen energy, and biomass energy as the source and foundation of production and manufacturing will usher in a new chapter of development.

5. Future Trends in New Energy
New energy investment has entered the second half, with attention focused on energy storage, battery recycling, ship power batteries, and other niche areas, with a hopeful outlook for future development.
(1) Energy Storage Sector
The prospects for new energy storage are broad, with the increasing global focus on environmental protection and government support for clean energy leading to a surge in energy storage demand. In the new power system, energy storage has the dual attributes of power source and load, making it an important key technology for building a new power system. Currently, the installed capacity of new energy storage projects in operation nationwide has reached 8.7 million kilowatts, with an average energy storage duration of about 2.1 hours, an increase of over 110% from the end of 2021. Nearly 30 provinces nationwide have introduced "14th Five-Year Plan" for new energy storage or new energy configuration storage documents, vigorously promoting "new energy + energy storage". In the future, the demand for long-term energy storage and seasonal energy storage will continue to grow, and the development of energy storage technology provides great support for the widespread application of renewable energy, not only solving the problem of unstable energy supply but also improving energy utilization efficiency, reducing energy waste, and providing more reliable and sustainable energy solutions for areas such as electric vehicles.
(2) Battery Recycling Sector
With the rapid development of the new energy vehicle industry, the battery recycling industry has also encountered new opportunities. In 2022, China's waste battery (excluding lead-acid batteries) recycling volume was approximately 510,000 tons, an increase of 21.4% year-on-year. The number of enterprises in China's waste battery recycling industry continues to increase, with over 160,000 battery recycling and processing enterprises nationwide. The main method of waste battery recycling and utilization is recycling, with the most commonly used method in China being dismantling and recycling. With the increasing global awareness of environmental protection, governments around the world are paying more attention to the environmentally friendly treatment and recycling of waste batteries, and under policy promotion, the scale of the waste battery recycling industry will further expand, and the related recycling system and infrastructure will continue to improve. At the same time, with technological progress, the efficiency of waste battery recycling and utilization will also be improved, reducing production costs and increasing economic benefits.
(3) Ship Power Battery Sector
Classification societies have expressed optimism about the prospects for ship power batteries, with nearly 1,000 cases of ship battery applications in the maritime industry. With the rapid development of technology, more and more chemical substances are being considered for ship power batteries, such as solid-state batteries, lithium-sulfur batteries, etc., which, if passed through rigorous testing, will definitely benefit the shipping industry. The global market size of ship power batteries in 2023 is approximately [specific data to be supplemented] billion yuan, with a compound annual growth rate (CAGR) of about [specific data to be supplemented]% from 2019 to 2023, and it is expected to continue to maintain a steady growth trend in the future, with the market size reaching close to [specific data to be supplemented] billion yuan by 2030, with a CAGR of [specific data to be supplemented]% over the next six years. China's ship power battery market holds about [specific data to be supplemented]% of the global market share, making it one of the most significant consumption markets globally, with a growth rate higher than the global average. With the development of new materials and the need to expand production scale, new battery technologies may initially be more expensive than current lithium-ion batteries, but as technology matures and production scale expands, costs are expected to decrease over time.
In conclusion, the second half of new energy investment, energy storage, battery recycling, ship power batteries, and other niche areas have broad development prospects, injecting new vitality into the continuous development of the new energy industry.