The low-altitude economy is "taking off"—battery manufacturers need to tell a "new story."

Besides new-energy electric vehicles and the burgeoning energy-storage market, what other "new stories" do power battery manufacturers have to share? Gaishi Automotive has observed that, amid the overarching trend of carbon neutrality, the low-altitude economy is gradually gaining momentum—and this industry is already attracting a wave of leading power battery manufacturers to enter the space. Moreover, as these companies forge new growth pathways, advancements in battery technology will further unlock greater potential for the large-scale commercialization of the low-altitude economy. When it comes to the concept of the low-altitude economy, many people may immediately think of the recently popular "hot" flying cars. However, in reality, the low-altitude economy encompasses a much broader range of products.
The products associated with the low-altitude economy primarily include drones, eVTOLs, helicopters, and traditional fixed-wing aircraft, catering to both consumer-driven residential applications and industrial-use scenarios. According to estimates from China's Civil Aviation Administration, China's low-altitude economy already surpassed 500 billion yuan in 2023 and is projected to reach 2 trillion yuan by 2030. Morgan Stanley forecasts that by 2040, the global low-altitude mobility industry will grow to a staggering one trillion U.S. dollars. In terms of the number of enterprises participating in China's domestic low-altitude economy sector, relevant statistics show that as of February 2024, China has more than 57,000 companies operating in this field. Notably, nearly 21,000 of these companies were established within the past five years, while those founded over the last decade account for nearly 80% of the total. Additionally, the top 50 Chinese cities hosting the highest concentration of low-altitude economy enterprises collectively hold an impressive 93.3% of the nation's overall business resources in this sector. It’s worth noting that the current low-altitude economy landscape is largely shaped by three main groups: first, companies originally focused on drone technology, such as Peakfly; second, startups emerging from aviation backgrounds, including Time Technology, Volocopter, and EHang Future; and third, major players from industries like aerospace, automotive manufacturing, and even tech giants—such as Airbus, Volkswagen, XPeng, and Geely.

The flying car-related products mentioned above belong to the third group of participating companies. Gasgoo has noted that the low-altitude economy concept has continued to thrive this year, with the share prices of five stocks, including Wanfeng Aovi, Jianxin Shares, CITIC Offshore Helicopters, Jindun Shares, and Laisi Information, doubling. Wanfeng Aovi's stock price has surged by over 260% this year. Furthermore, amidst the booming low-altitude economy sector, much of the industry's attention has gradually turned to related supply chain companies, with power battery manufacturers being particularly prominent. Gasgoo has observed that many leading domestic power battery manufacturers have made high-profile moves into the low-altitude economy market, including leading lithium battery companies such as CATL, EVE Energy, Guoxuan High-Tech, and Farasis Energy.

Among them, CATL unveiled its latest condensed matter battery in Shanghai, boasting a cell energy density of 500Wh/kg, suitable for the new electrification of manned aviation. According to reports, CATL is currently collaborating on the development of a civilian electric manned aircraft project. The battery meets aviation-grade standards and testing, ensuring it meets aviation-grade safety and quality requirements. Farasis Energy also announced that aviation is one of the battery applications the company is exploring. Its first aircraft battery will be deployed at its Zhenjiang base. Projects are currently underway both domestically and internationally, and a domestic project has already secured a contract. The company has already collaborated extensively with leading overseas companies and delivered products in the eVTOL market, and has secured a contract with Shanghai Shi Technology Co., Ltd. in China.

It is worth noting that, compared to new energy electric vehicles, aircraft currently have higher requirements for power battery products, including energy density, high power, safety, fast charging, and long life. A Ping An Securities research report indicates that battery performance is a key bottleneck hindering the development of eVTOLs. Power batteries have a shortcoming in energy density. The power required for vertical takeoff of eVTOLs is 10-15 times that of ground-based vehicles, placing extremely high demands on battery energy density. In addition to energy density requirements, eVTOLs undergo various stages of flight, including takeoff, cruising, and hovering, which require different battery discharge rates. For example, special scenarios such as takeoff and landing require instantaneous charge and discharge rates of eVTOL batteries exceeding 5C, while current electric vehicle charging rates are generally below 4C. This means that power battery manufacturers involved in supplying batteries for low-altitude aircraft must have a solid foundation of technology and the ability to improve and innovate battery performance. Is the opportunity for all-solid-state batteries emerging? So, what kind of battery is best suited to this challenge? Research firm EVTank believes that the rise of the eVTOL industry has opened up new areas for the application of lithium batteries and next-generation battery technologies (such as all-solid-state batteries and lithium metal batteries), creating new growth momentum. Huajin Securities also noted that since the beginning of this year, China has accelerated the commercialization of eVTOLs, creating an urgent demand for batteries with high energy density, high power, and high safety, while also being cost-insensitive. Solid-state batteries perfectly meet this market demand, and industrialization is expected to accelerate.

Gasgoo has noticed that many battery manufacturers have announced progress in all-solid-state battery technology and mass production since the beginning of this year. For example, in April, CATL announced its first timeline for all-solid-state battery research and development and mass production. The company's chief scientist, Wu Kai, stated, "There's a significant opportunity for CATL to achieve small-batch production of all-solid-state batteries by 2027, but large-scale production is not yet feasible due to cost and other factors." Guoxuan High-tech also stated that the company plans to begin small-batch vehicle testing of its all-solid-state batteries in 2027. If testing goes smoothly, mass production is expected to begin in 2030 as the supply chain gradually establishes. (This article is from Gasgoo)

Reprinted from Sina Auto

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