With the rapid development of the new energy vehicle market, the demand for aluminum foil market has also shown explosive growth. According to industry insiders, this growth is mainly due to the demand for power battery-grade aluminum foil from new energy vehicles. In this context, global aluminum foil companies are facing supply chain challenges and opportunities.
This surge in demand is not limited to the Chinese market. Globally, the demand for aluminum foil in the new energy vehicle market is also growing significantly. According to data from the International Aluminum Association (IAI), global primary aluminum production will be 68.3 million tons in 2022, a year-on-year increase of 5.8%. Among them, China's output was 44.58 million tons, a year-on-year increase of 4.5%. According to forecasts from market research company Markets and Markets, the global aluminum foil market will grow from approximately US$14.9 billion in 2020 to US$20.7 billion by 2025.
However, this rapidly growing demand has also brought supply chain challenges to aluminum foil companies. First, as the global "decarbonization" movement and green energy transition advance, many aluminum smelters are closing or converting. This has led to tight aluminum supplies, especially in the green aluminum sector. Secondly, due to the impact of the COVID-19 epidemic and global logistics bottlenecks, the production and transportation of aluminum foil are also facing many difficulties. This has caused aluminum foil prices to rise globally, further exacerbating supply chain challenges.
