The COVID-19 drug VV116 is expected to be launched in 2022, stimulate the rise of lithium battery sector

1. Future Prospects and Key Observations of Lithium Batteries

Throughout 2021, from the perspective of market reaction, the lithium battery-related industry chain sector does not seem to be affected by the Covid-19, but has been advancing all the way. Below, we will analyze the potential impact of the new coronavirus epidemic from the perspectives of industry supply and demand, as well as companies themselves.

1. 1)  Supply side effects:

The assembly of lithium battery materials and LiFePO4 batteries modules has a high degree of automation, so it is less affected by manpower; in addition, the cooperation between lithium batteries from materials to battery cells is extremely close, and more than 80% of the consumer battery industry is still concentrated in China.such as LiSOCL2 battery and LiMNO2 battery . In the case of consumer devices where all parts are indispensable, the high concentration of the lithium battery industry chain is still an advantage for the development of the industry.

In the field of lithium battery materials, the imports of lithium battery materials account for more than 30% of the world's lithium battery materials. Affected by the Covid-19, the delivery of export orders for precursors, positive and negative electrodes, separators, and electrolytes has been affected in a short period of time. From the perspective of domestic demand, the demand for Lipo battery for automotive power has increased significantly, while the demand in the fields of digital, power tools, and electric bicycles has not changed much. Therefore, the price increase of lithium battery materials will have a certain continuity.

1. 2) Demand side impact:

According to the "Energy Conservation and New Energy Vehicle Development Plan", by 2021, the output of new energy vehicles in my country will reach 2 million, and the cumulative production and sales will exceed 5 million, while the domestic production of new energy vehicles in 2019 will be 1.242 million, and the cumulative sales will be 1.206 million. 10,000 vehicles, there is still room for 2.552 million vehicles from 5 million vehicles in 2020. Although state subsidies are declining year by year, the relay of the double-point policy has become a new driving force for the development of domestic new energy vehicles.

It is estimated that by 2021, the domestic demand for power batteries will reach 104GWh. Coupled with the promotion of 5G base stations, ultra thin battery energy storage batteries are the core guarantee for the continuous operation of communication base station facilities. When the mains grid supply fails or is abnormal, the energy storage battery can be switched without interruption to ensure that the equipment continues to work normally. In the future, the mature application of "communication base station + energy storage lithium battery", lithium iron phosphate battery will occupy a dominant position. With the acceleration of 5G infrastructure, the demand for energy storage lithium batteries will continue to rise, and more and more battery companies will join the market competition.

The three major measures will surely bring a new breath to the battery industry, will effectively promote the sound and rapid development of the new energy market, and become an important way to effectively respond to challenges and seize development opportunities.

1. 3) The impact of the epidemic on lithium battery companies

Affected by the epidemic, lithium polymer battery companies are affected by the arrival of employees, upstream supply chain supply, and poor logistics. The production line resumption rate is generally less than 80%. The elimination of sulfur battery and lithium manganese battery companies will be more tragic, and capital will become the company's biggest crisis. The cash flow of the polymer battery and lithium iron phosphate battery industry itself is not good. Affected by the epidemic, it will increase the capital of many companies. turnover.

2. the Covid-9 drug VV116 is expected to be launched in 2022

Fortunately, on December 30, the new crown oral drug VV116 developed by a Chinese company was authorized for emergency use in Uzbekistan. This is another new crown oral drug approved in the world after Merck and Pfizer's new crown oral drugs were approved. At present, VV116 has entered the clinical trial stage in China.

According to CCTV news reports, preclinical pharmacodynamic studies have shown that VV116 has significant inhibitory activity on the original and variant strains of the new coronavirus, such as delta virus, in vitro. The research team of researcher Shen Jingshan from Shanghai Institute of Materia Medica, Chinese Academy of Sciences and cooperative scientific research institutions found that oral administration of VV116 can reduce the virus titer below the detection limit, and can significantly improve the pathological changes of lung tissue in experimental model animals. A series of preclinical safety evaluation experiments showed that VV116 has good safety and no genotoxicity. analysis from Safe Excellent Reliable Battery Manufacturer for LiSOCL2 battery_Ultra thin battery_3.0V lithium battery_Lipo battery_LiFePO4 batteries and Portable power station_SER GROUP

Summary: It is expected that with the gradual stabilization of the pneumonia epidemic, the supply of the lithium battery industry will gradually recover. In the medium and long term, the recovery of the lithium battery industry still needs to be considered from the demand side.