Why is the power cell market about to be shuffled?

In China, in a narrow sense, new energy vehicles are mainly pure electric vehicles or hybrid vehicles. Therefore, in recent years, driven by the new energy automotive industry, power batteries, as the core part of new energy automobiles, have shown a flourishing development trend and their huge development has been "the blue sea". In order to seize the domestic market, power battery companies have "high recruiting" and "fighting for competition". At the same time, a large number of emerging power battery manufacturers have emerged.

According to incomplete statistics, by the end of 2017, there were already more than 140 power battery companies in the country(including those under construction). However, at present, in addition to the Ningde era, BYD, Wotema, Bic, Guoxuan Gaoke, etc., have already occupied a significant advantage in the domestic market. Battery companies, Other similar products in the same level of production capacity, technology level and prices of enterprises are slightly inferior.

The reporter learned from the organizing committee of the "2018 China New Energy Power Battery and Storage Energy Industry Conference" that 2018 is a key year for the development of new energy vehicles. China's power battery market is facing a "comprehensive reshuffle" and will present a "stronger and stronger" development trend. Therefore, How each power battery enterprise survives in the seam and stands out in the fierce market competition is an urgent problem to be considered.

Market saturation integration merger trend

In 2017, China sold 777,000 new energy vehicles. It is expected that in 2018, China's new energy vehicle sales will exceed one million. In the future, China's power battery market demand is large, the development of a good situation.

At present, according to the output data of the factory qualification certificate of the Ministry of Industry and Information Technology, the total domestic power lithium battery demand in China is about 90 GWh by 2020, and by 2025, the demand for power batteries will reach 310 GWh.

Although the development of new energy vehicles in China has led to the development of the power battery industry, but power battery companies have a high-end deficit, low-end excess development environment. According to statistics from relevant research institutions, the output of power batteries in China in 2017 was 44.5 GWh, but in fact, the installed capacity of power cells in China in 2017 was only 36.24 GWh. Therefore, the total inventory of power cells in 2017 accounted for about 18.7 % of the total production. In addition, lithium iron phosphate batteries will face a more serious problem of excess capacity in the next 1 to 2 years, and lithium trioxide batteries will have stage excess capacity. However, in the medium and long term, China's power battery industry still has a very large growth space.

Due to the impact of the decline in subsidies for new energy vehicles, the market price of power batteries in 2017 has fluctuated greatly. According to the GGII data from the Institute of High Industrial Production and Research Lithium, the price of power cells at the end of 2017 fell by 20 % to 25 % from the beginning of 2017, and the price of lithium iron phosphate power batteries dropped from 1.8 to 1.9 yuan/Wh at the beginning of the year to 1.45 to 1.55 at the end of the year. 5.5/Wh, The price of a ternary power battery dropped from 1.7 to 1.8 yuan/Wh at the beginning of the year to 1.4 to 1.5 yuan/Wh at the end of the year.

Some experts said that due to the dual impact of supply and demand and subsidy policies, the market price of power batteries in China will continue to decline in 2018, at the expense of profits to seize the market. In 2018, on the battlefield of smoke and smoke, the power battery industry is about to open the big screen, and in the future, mergers or integration between companies will also become the trend of market development.

Strong, stronger, leading enterprises.

On March 23, 2018, the Ministry of Science and Technology issued the "2017 China Unicorn Enterprise Development Report". The Ningde era ranked sixth in the "2017 China Unicorn Enterprise List" with a valuation of US$ 20 billion, and ranked among the selected new energy car industry companies. Ranked first.

At present, in the domestic power battery market, the Ningde era with its excellent battery technology level, undoubtedly become a leader in the industry. It is reported that in 2017, China's power battery shipments accounted for nearly 30 % of the market in the Ningde era, and the total number of power battery companies in the top 10 installed capacity was approximately 26.22 GWh, accounting for 72.3 % of the total. The Ningde era and BYD alone have 44 % of the power battery market.

According to the reporter's understanding, in the domestic era, Ningde was a battery supplier of up to 46 car companies, of which, in the six major state-owned car groups, FAW, SAIC, Dongfeng Automobile has become a partner in the Ningde era. The powerful Ningde era has so many "big coffee" level collaborators that they have already left other battery companies behind.

However, BYD, which followed closely, was not willing to show its weakness. It is understood that on February 3, 2018, Qinghai Yanhu BYD Resources Development Co., Ltd. and Qinghai Yanhu Fozhanglan Lithium Company's "3 +2" Battery Lithium Carbonic acid project was officially launched with a total investment of nearly 8 billion yuan. This will be the largest lithium carbonate project in the country. It is reported that after the completion of the project, the production capacity of lithium carbonate in Yanhu shares will reach 60,000 tons per year, and the annual output value of the project will reach 4.5 billion yuan after it is put into operation, which will inject new impetus into the development of BYD's power battery.

The rules of society will mercilessly eliminate competitors who can't keep pace with the times. Therefore, for power battery companies, powerful giants will further enhance their competitiveness by expanding their scale and technological advantages. The stronger the strong, Weak small and micro battery companies can not escape the fate of being annexed.

Power battery expert Wangzidong once said: "In 2015, there are 450 power battery supporting companies; In 2016, it was reduced to 240; There were only 96 in 2017 and a further reduction of half in 2018 is expected. "

Although the current power battery market is facing the trend of overcapacity, price decline, but overall, our country's power development still has a certain foundation and strength. Recently, Xiaochengwei, an expert of the National Expert Group on Major Projects on Energy Conservation and New Energy Vehicles under the "863" Project, also said at the "2018 China New Energy Power Battery and energy storage Industry Conference" that in the next three to five years, China Power Battery Development Technology is expected to Sprint to the top in the world.

The page contains the contents of the machine translation.