EVE Energy Energy Storage Business Analysis Report

EVE Energy (300014.SZ) is a leading lithium battery manufacturer in China, with a current market capitalization of approximately 13.991 billion USD and a stock price of 68.62 CNY. Its business covers three major segments: power batteries, energy storage batteries, and consumer batteries [0][1].

• In 2024, energy storage battery revenue reached 19.027 billion CNY, accounting for 39.14% of total revenue
• The share of energy storage batteries in total lithium battery production has continued to grow, reaching 26% in the first 11 months of 2025 and 28% in November alone
• EVE Energy ranks among the top three in global energy storage cell shipments, second only to CATL and Haichen Energy Storage [2][3]

1. Intensified Industry Price Competition:
   • The average selling price of energy storage batteries has continued to decline, from 0.8 CNY/Wh in 2022 to 0.4 CNY/Wh in 2024
   • Haichen Energy Storage, a new entrant in the industry, adopts a low-price strategy with an average selling price of only 0.24-0.28 CNY/Wh, further depressing market prices

2. Raw Material Cost Pressure:
   • The lithium iron phosphate (LFP) material industry is generally in a state of loss
   • Fluctuations in upstream material prices are transmitted to the battery manufacturing link

3. Overseas Market Uncertainties:
   • EVE Energy’s overseas revenue accounts for 24.25% (2024)
   • Overseas business growth faces geopolitical and exchange rate risks

Although EVE Energy’s energy storage gross margin is higher than that of major competitors, it shows a continuous downward trend, and its competitive advantage is being eroded [1][2][3].

1. Gross Margin Declines Against the Trend:
   Although the energy storage business share increased from 33% to 39%, the energy storage battery gross margin dropped from 17.03% to 12.03%, and changes in business structure did not lead to improved profitability

2. Industry Enters Price War:
   Overcapacity in the energy storage industry has led to fierce price competition, and the phenomenon of “increasing production without increasing revenue” is common among enterprises

3. Profitability Under Pressure:
   The company’s overall net profit margin is only 6.22%, operating profit margin is 6.46%, free cash flow is negative (-1.112 billion CNY), and its financial situation is tight

4. Difficult Cost Pass-Through:
   Downstream customers have strong bargaining power, making it difficult for battery manufacturers to fully pass cost pressures to the terminal

• The energy storage industry’s installed capacity is expected to reach 157 GWh in 2025, a year-on-year increase of 82.9%
• Global energy storage installed capacity still has 8.6 times growth space from the ceiling
• Price wars will continue in the short term; in the medium and long term, attention should be paid to gross margin recovery opportunities brought by technological upgrades and cost optimization

[0] Jinling API - EVE Energy Company Overview (https://financial-data-api/company/300014.SZ)

[1] Jinling API - EVE Energy Financial Analysis (https://financial-data-api/financial/300014.SZ)

[2] Caifuhao - “Long-Duration Energy Storage Systems: Haichen Energy Storage’s Life-or-Death Gate” (https://caifuhao.eastmoney.com/news/20251217130356083354120)

[3] Sina Finance - “Flourishing at Home and Abroad: Energy Storage Moves Toward Marketization New Stage” (https://cj.sina.cn/articles/view/1838672663/6d97eb1702001let6)