The location of the first overseas factory is about to reveal the speed of the Ningde era.

On May 18, the "Unicorn" representative company, Ningde, quickly received the initial listing application(IPO) approval of the GEM of the Shenzhen Stock Exchange of China. According to the new prospectus of the Ningde era, the company shipped 12 GWh of power batteries in 2017, which surpassed Matsushita's 10 GWh and BYD's 7.2 GWh, ranking first in the world. This is also the first time that China's lithium battery company has occupied the top shipping volume in the world. With demand from the world's largest new energy car market, the Ningde era easily won the global power battery sales list, but it is "no worry", but actively expanding overseas markets, hoping to become a true "global number one."

The first overseas factory site will be announced soon.

The European Battery Show, Europe's largest power battery show, opened in Germany on May 15, local time. Madiyasi·centegelafu, president of the European region in the era of Ningde, revealed at the exhibition that the company "has entered the final stage of discussion on the establishment of a factory in Europe." Mr. Centegelafu said that "the establishment of the plant in Europe will be finalized within a few weeks". It is reported that the Ningde era is currently discussing the issue of factory site selection, production capacity and total investment, and European factories are expected to be put into operation around 2020.

In an interview in March, Zengyuqun, Ningde's chairman, said the company planned to locate its first overseas plant in the European Union. "The market for European power cells is promising. South Korean battery companies have built up market advantages locally using low-cost strategies, but they have not made much progress in technology in the past few years. The Ningde era has grown rapidly. The company has conducted inspections in Germany, Hungary, and Poland, according to people familiar with the matter. It is reported that the era of Ningde is seeking to build factories in Europe at the lowest possible cost, and the demand for local electric cars will determine its battery capacity.

Like LG Chemistry in South Korea, the Ningde era was recently selected as a battery supplier by the German automaker Volkswagen Group. Centegelafu stressed the need for local production in Europe. "It takes six weeks to transport power batteries from China to Europe. It will be difficult to sustain in the long run." Ningde era will also become a Korean company after LG Chemistry and Samsung SDI. The latest Asian company to produce power batteries in Europe. LG Chemistry has a factory in Poland and Samsung SDI has a battery factory in Hungary. In fact, the Ningde era has already begun to be deployed in overseas markets. Last year, it bought a 22% stake in Valmet AutomotiveOy, Finland, for 30 million EUR. It is a contract manufacturer of Daimler and a supplier to Porsche and Lamborghini.

Not long ago, Liang Chengdu, director of the Ningde time research institute, said in Tokyo that the company would open a sales office in Japan in May. It is reported that the Ningde era will send battery technicians to the Yokohama area to assist customers during the year. So far, orders for Ningde era and multinational car companies have been mostly completed in the Chinese market. However, the Ningde era also hopes to win more orders from Japanese car companies by establishing a Japanese sales center.

The "circle of friends" of multinational car companies continues to expand

Since winning the German carmaker Volkswagen's 50 billion euro battery purchase order in March, the Ningde era has been reaping new multinational car customers at an alarming rate. On March 13, Haiziman, president and CEO of Volkswagen China, said: "We have reached a cooperation with the Ningde era. The products of the Ningde era will be applied to pure electric vehicles, MQB hybrid power, and new energy vehicles on the MEB platform, but it needs to be emphasized. What is, The batteries produced in the Ningde era will all be used for electric vehicles produced in China. "

On April 25, at the scene of the Beijing Motor Show, Jaguar Land Rover, a high-end British car brand, announced that it had signed a letter of intent for strategic cooperation with the Ningde era. The two sides will jointly study and develop automotive power battery technology. In early May, Sabinnuo·angeman, Daimler's procurement director, said the group had signed a contract with the Ningde era, which entered Daimler's global battery supply chain system.

In addition to European car manufacturers, the Ningde era has recently successfully "unlocked" Japanese car companies. It is reported that the company will sign a battery procurement contract with Renault-Nissan, and in the future supply of lithium batteries for Renault and Nissan's newly developed pure electric vehicles. This cooperation between the two sides is the first time for the Ningde era to provide Japanese car batteries. At the Beijing Motor Show just past, Dongfeng Nissan's pure electric model Xuan Yi EV made its public appearance for the first time. The new car is equipped with the Ningde era batteries. This is also the first time that the Japanese brand's products have been equipped with Ningde era batteries. At the same time, Renault also decided to use its purely electric commercial car KangooZE to use Ningde era power batteries. On May 23, Japanese carmaker Honda announced that it will jointly develop batteries and related technologies with the Ningde era for new electric vehicles. It is understood that the electric car will be launched in China and other markets in the first half of 2020.

It can be seen that the cooperation between Ningde era and these multinational car companies is still mainly limited to the Chinese market, but with the increasing number of multinational car companies 'customers, Ningde era has expanded in the local market of these multinational car companies and other overseas markets. There is also great potential. Japanese car companies, for example, will be listed in other overseas markets in the future after they take the lead in launching new electric models in China. "In China and around the world, we are going to see Mercedes electric cars using Chinese cores in the future," said Daimler's chairman Cai Che. "

Local overcapacity, active deployment overseas.

More and more European car companies are integrating the Ningde era into global supply chains, so Ningde's plan to establish battery factories in Europe is also reasonable. And Europe is the world's second-largest market for new energy vehicles after China. European opposition to diesel-powered vehicles is growing, with the government pushing hard for electric vehicles, leading to rapid sales growth and strong demand for power cells. The main competitors facing the Ningde era in Europe are Korean battery companies such as Samsung SDI and LG Chemical. So is the Ningde era capable of competing with them in overseas markets?

From a technical point of view, the Ningde era was originally a division of ATL, a world-class leader in digital batteries. After independence, it experienced the training of supplying batteries to BMW until it was recognized by many international mainstream car manufacturers today. "I think it's very promising to enter overseas markets in the era of Ningde," a senior executive of a foreign car brand who asked not to be named, told China Automobile. The technology gap between it and international suppliers such as Panasonic and LG Chemical has become smaller and smaller, and the Ningde era is expected to transform market advantages into technological advantages in a short period of time. Another representative of the car company said that the quality of Ningde's products was not a problem and that there may be room for improvement in the assembly process. If its price is more advantageous than that of other battery makers, it can fully stand in the European market. Moreover, the advantages of Ningde era in terms of production capacity supply and cost control have been further consolidated. Public data show that in 2017 Ningde era power battery shipments as high as 12 GWh, supporting models reached 390 models. With many car companies choosing the era of Ningde, its scale effect has further increased and costs have been further controlled.

Indeed, in addition to the demand for higher profit margins, Ningde 's foray into overseas markets is based on the grim reality that China has excess domestic power battery capacity. According to data from the Institute of Lithium Power Research(GGII), in 2017, China's entire power battery industry has a capacity of more than 200 GWh, but the installed capacity is only 44.5 GWh. It is expected that by 2020, the installed capacity of power batteries will reach 100 GWh.

In fact, China's new energy power battery market overcapacity, from the Ningde era, as seen in the prospectus. In 2017, the capacity of lithium-ion batteries in the Ningde era was 17.09 GWh, the output was 12.91 GWh, and the capacity utilization rate was 75.54 <UNK>. In 2015 and 2016, they were 96.92 <UNK> and 92.37 <UNK>, respectively. The capacity utilization rate has declined for two consecutive years. In recent years, the Ningde era has continued to expand its production capacity. By 2019, its power battery production capacity will reach 30 GWh, and by 2020 it will reach 50 GWh. Therefore, in the era of Ningde, it became inevitable to strive for a greater share in the international market.

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