Cyclical swings and divergent R&D in global Li-ion battery equipment market
Investment in R&D by Li-ion battery equipment makers is closely tied to market conditions, with big fluctuations in recent years. We have also noticed a striking divergence in investment trends between Chinese and South Korean firms. This insight examines R&D investment and activities of 16 vendors with lithium-ion battery equipment as their core business, selected from the world’s top 25 lithium-ion battery equipment suppliers. It provides in-depth analysis of current trends and shifts shaping the lithium-ion battery equipment R&D landscape.
In 2024, global sales of lithium-ion battery equipment saw a substantial decline, with Chinese equipment vendors in particular grappling with severe revenue drops (read our detailed insight on this topic here). This market downturn translated into a notable pullback in R&D investment across the sector: the combined R&D spending of 16 leading players fell by 13.5% year-on-year, following a record high of $640 million in 2023.[1]
[1] Total R&D investment includes non-Li-ion battery equipment business
Notably, Chinese and South Korean firms moved in opposite directions when it came to R&D spending in 2024. Most Chinese equipment vendors, hit by shrinking market demand, cut their R&D budgets to some extent. Meanwhile, South Korean companies like PNT, APRO, and Philenergy bucked the trend, stepping up their R&D efforts, with spending on a clear upward trajectory, making them a key driver of growth in overall R&D investment.
Chinese vendors lead in investment intensity, South Korean companies shine in growth
R&D investment in the global lithium-ion battery equipment industry is clearly concentrated among the top players. The ranking of companies’ R&D spending lines up with their sales performance, showing an investment logic of ‘spending within one’s means.’
As the world’s top two lithium-ion battery equipment firms, China-based Lead Intelligent and Yinghe Technology also take the top two spots in R&D investment. Lead Intelligent stands out with a particularly strong R&D edge. Its annual R&D spending has exceeded $200 million for three years in a row, far outpacing other companies. Hymson ranks third with steady R&D input.
Further, Chinese Li-ion battery equipment makers have much higher R&D intensity (R&D spending as a percentage of revenue) than their South Korean counterparts. During 2022 to 2024, the top six companies by R&D spending were all from China. Even amid the 2024 industry downturn, Lead Intelligent, Lyric Robot, and Hymson kept their R&D ratios above 10%; well above the median levels of 6.1%, 4.7%, and 4.3% from 2022 to 2024. In contrast, South Korean enterprise PNT ranked third in global sales in 2024, but only seventh in R&D investment. Other South Korean enterprises entering the top 25 in global sales have R&D investment rankings significantly lagging behind their sales rankings.
Contact us to learn more about our research.
Chinese lithium-ion battery equipment makers’ strategy of investing a large share of their revenue in R&D is a diversified choice that balances market adaptation with industry expansion.
On one hand, they focus on key areas like high-precision processes, constantly upgrading equipment performance and operational stability. This lets them closely match the evolving needs of China’s lithium-ion battery industry, specifically for higher efficiency, greater energy density, and better safety, to ensure their equipment keeps pace with downstream production upgrades.
On the other hand, they leverage the automated and intelligent tech expertise built up in the lithium-ion battery equipment space to expand into new areas like new energy and industrial automation. This not only broadens their business scope but also spreads the risks of relying on a single industry, boosting their overall competitiveness.
When it comes to the resilience of R&D investment growth, there’s a clear gap between Chinese and South Korean equipment firms. Of the 16 core companies, 10 maintained positive compound annual growth (CAGR) in R&D spending from 2022 to 2024, with South Korean enterprises standing out with particularly strong growth. Six out of seven South Korean firms achieved steady R&D investment growth, with rates well above the industry average. In contrast, Chinese enterprises were hit hard by the 2024 market slump, and R&D spending for five key Chinese firms dropped below 2022 levels.
R&D focuses on high precision, high efficiency, intelligence, and new battery technology adaptation
In terms of R&D activities, lithium-ion battery equipment enterprises’ R&D focuses on improving the large-scale production of existing lithium-ion batteries and deploying next-generation battery technologies, which can be roughly summarized as moving in the following four core directions:
- High precision: Improving the processing precision and process stability of equipment in various process links to ensure the consistency of battery performance. Examples include precision slitting, tab precision welding, and high-precision testing.
- High efficiency: Optimizing the manufacturing process through equipment speed-up and process integration for higher production efficiency and reduced energy consumption. Examples include high-speed welding, high-speed winding/stacking, film wrapping and casing, continuous cell assembly, and laser cutting and winding integrated machines.
- Intelligence: Deeply integrating intelligent technologies into equipment in various process links to continuously improve production flexibility and quality management. Examples include intelligent coating systems, intelligent cell casing and packaging, and AI-based appearance inspection equipment.
- New battery technology adaptation: Developing adaptive equipment for the manufacturing processes of new batteries, such as solid-state batteries and large cylindrical batteries (46 series). Examples include dry mixing equipment, sulfide solid-state dry electrolyte membrane equipment, solid-state battery isostatic pressing equipment, and 4680 formation and grading integrated machines.
Final thoughts
R&D investment is closely tied to industry prosperity, which means short-term investment will adjust with market cycles. However, in the long run demand for lithium-ion battery technology upgrades won’t slow down and R&D spending will remain key for equipment makers to stand out. Whether it’s improving the performance of EV batteries and energy storage batteries, or commercializing new technologies like solid-state batteries, there will always be ongoing demand for better equipment process adaptability, precision, and intelligence.
The global lithium-ion battery equipment market, led by Chinese and South Korean firms, is currently being reshaped by several factors, one of which is the global expansion of lithium-ion battery production capacity across different regions, drawing in emerging enterprises. Another is breakthroughs in new technologies (like solid-state batteries), creating more opportunities to overtake the curve.
In this context, both leading Chinese and South Korean companies, as well as emerging players, will keep ramping up R&D investment. They’ll focus on core technology R&D and adapting to new processes, not only upgrading the global lithium-ion battery industry, but also driving the industry’s long-term development through innovative competition.
How our research can help you
Our Li-ion battery reports provide granular data analysis of the manufacturing and equipment market, including the end-user landscape, regional trends, supplier market shares, a highly detailed factory database, and recycling. For more information, please get in touch with Shirly Zhu.
