Geely plans power cell new energy capacity scale emerging

When it comes to new energy, it has to be said that a car company is Geely. As early as 2015, Geely took the lead in announcing the grand new energy strategy, "Blue Geely Action," and proposed to achieve 90 % sales of new energy vehicles by 2020. Combined with Geely's target of 2 million vehicles by 2020, this also means Geely will sell 1.8 million new energy vehicles annually in two years.

At present, the rapidly developing Geely Automobile has already stood at the top of the local brand. Its new energy source is steadily advancing. Almost all new products have new energy models. The next step to start with new models is 48V. While we hardly doubt the correctness of Geely's new energy road, one question that comes with the 1.8 million new energy sales is whether the battery backing behind it will be enough to support Geely's vast new energy empire as new energy capacity emerges.

With Li Shufu's character, he naturally wants to control the core components such as batteries in his own hands.

As the most important part of the "three power systems", which is the core of new energy development, the power battery is almost the core factor of new energy vehicles and strategic development. In products, this is the key to determine vehicle mileage, safety factor, and vehicle quality assurance; In companies, this is also the key to determining vehicle revenue and profitability, because in new energy vehicles, batteries account for almost 10 % to 50 % of the total vehicle cost.

So, as a top ten company that is determined to enter the global automotive industry, how does Geely lay out its own power battery in the key areas of new energy development? "Like PHEV will use its own battery." On July 21, the first appearance of the Lectra PHEV listed a month ago, Geely Holding Group President and CEO An Conghui revealed the secret, and behind this secret, Hide more stories.

Purchase and self-production combined

From the catalogue released by the Ministry of Industry and Information Technology, we can see that several of Geely's existing new energy models, Emperor EV, Emperor PHEV, and Emperor GSe, all use Ningde batteries, as the mainstream industry chooses. This is also a unicorn that most car manufacturers can not avoid.

It is not difficult to find out that although Geely is currently dominated by Ningde era batteries, Geely did not follow and did not stand in the most central vortex in this "kidnapping" war. Whether it is Lectra or Borui GE's plan on the battery, Geely seems to have left behind.

It is understood that although the Borui GE battery is provided by the Ningde era, but the integration and battery pack is undertaken by Wei rui Electric Vehicle Technology (Suzhou) Co., Ltd., who is Wei Rui? According to the information of the Trade and Industry Bureau, Wei rui is actually a subsidiary of Geely Holding, which specializes in the development, manufacture and sales of electric vehicle drive systems (power battery systems, electronic control, motors and system integration). In addition to providing battery packs to Borui GE, Wei rui will provide battery pack services for more models such as Emgrand GLPHEV in the future.

The company, which has less news and less information, is adding to Geely's new energy business. In 2017 alone, Wei rui had orders for 500 Geely Group and 2,000 Volvo battery packs, sales of about 200 million yuan, and planned 300,000 battery pack production capacity. At the same time, Wei rui is still expanding its production capacity. In addition to Suzhou Company, Geely also established Wei Rui Ningbo Company and planned and built 500,000 battery packs in Hangzhou Bay.

If Geely is able to use the Weirui processing battery pack to classify it as a purchased battery, then the first use of Zhejiang Hengyuan battery by the Lectra 01PHEV means that Geely has begun to put its own battery on its own new energy vehicle.

What is the relationship between Hengyuan and Geely? Here we must mention the Hongqiao Group, which serves as a bridge and bond. As a Hong Kong-listed company, Hongqiao Group owns two lithium-ion battery production plants, Hengyuan New Energy in Shandong Province and Hengyuan New Energy in Zhejiang Province. More importantly, Geely Holdings also owns 48 % of the shares in these two battery factories.

According to the equity information of listed companies, it is not difficult to find that the controlling shareholder of Hongqiao Group is Geely Group. That is to say, Geely indirectly controls the two power battery companies of Shandong Hengyuan New Energy and Zhejiang Hengyuan New Energy through this Hong Kong listed company. Under all sorts of disputes, it is not difficult to find that Geely wants to build Hongqiao Group into the main power battery supplier of Geely's different brand models, and this goal is also becoming a reality with the Advancement of Geely's new energy strategy.

In addition to the previous supply of Zhidou and Kangdi power batteries, on October 23 and 25, 2017, Hongqiao Group successively announced two related transaction announcements, claiming to win the two brands of Volvo and Geely's Geely and LYNK&CO (Lectra). Order for ternary lithium battery. In July this year, Hongqiao Group issued a notice stating that it will revise two sales agreements with Zhejiang Geely Parts and Volvo Cars. After the revision, the cooperation amount of the two sales agreements will be further enhanced.

In fact, Hongqiao Group is not Geely's only layout in the power battery field. On July 3 this year, Qian Jiang Motor issued a daily related transaction with Geely Sichuan Commercial Vehicles Co., Ltd., announcing that Geely Commercial Vehicles Co., Ltd. will purchase power battery systems from Qianjiang Li-electric subsidiary Qianjiang Motorcycle Co., Ltd.. The estimated amount in 2018 does not exceed 100 million yuan. In 2016, Geely became a shareholder of Qianjiang Motorcycle and became its controlling shareholder.

From Wei Rui to Hengyuan to Qianjiang Lithium, Geely's battery layout has been slowly expanding in all its plate areas. The territory of Geely's battery empire has gradually become clear with the simultaneous advancement of passenger and commercial vehicles.

He took his fate into his own hands

Whether it is the binding of several car companies to the era of Ningde or the opening of BYD's own battery business, it is enough to prove that power cells will determine the pace of development of new energy sources. As a very knowledgeable entrepreneur, Li Shufu will naturally not let others control the throat of development when he implements his own new energy strategy.

Just as Volkswagen is considering mass production of solid-state batteries starting in 2024 or 2025, Li shufu will surely take his fate into his own hands in the face of key core technologies, such as power cells, that determine the development of new energy sources. After all, he will put eggs in one basket. Not the thinking of a legendary businessman.

From Hongqiao Group's revision of the sales agreement, it is not difficult to see that Hongqiao Group has reduced the annual maximum amount of power cell transactions with Geely and Volvo in the short term, but in the long term, the total amount of transactions has not decreased, which shows that Hongqiao Group attaches great importance to cooperation with Geely Group. The level of strategic cooperation between the two sides has further deepened.

It is worth noting that behind the increase in the amount of transactions, it may be directly related to the production line equipment and patented technology of the LG Chemical Nanjing Plant introduced by Zhejiang Hengyuan New Energy. In May, media reported that "Volvo's plug-in hybrid cars made in China will use high-end Korean battery technology. Unlike direct purchases, these LG chemical power cells are produced in Hengyuan, Zhejiang Province. "

According to sources, Geely completed a wholly-owned acquisition of LG Nanjing Battery Factory in April 2017 and obtained the right to use all production equipment and manufacturing technology intellectual property of LG Nanjing Factory. LG will help Geely Group upgrade Hengyuan New Energy's battery technology to meet LG's quality standards. Starting from the current high-end and luxury brands such as Linkock and Volvo, the use of Hengyuan new energy batteries also seems to prove that Hengyuan's battery technology has made major breakthroughs under LG's technology, at least not in the same class as the power batteries on Zhidou and Condi.

In addition to supplying new energy batteries to Geely, Hongqiao Group has other plans for Hengyuan New Energy. Hongqiao Group said that in the short term, the Group's expected sales to Geely's company will account for most of the sales revenue after the first production line of Zhejiang Hengyuan New Energy was put into operation.

However, as market competition intensifies and costs are reduced, OEMs want to have more quality and power battery suppliers, and battery companies must optimize their customer structure. Hongqiao Group plans to strive for product orders from the world's mainstream car companies when the time is right, to diversify risks.

In fact, Hongqiao Group's concerns are not superfluous. In addition to Panasonic's exclusive use of Tesla, the Ningde era is gradually reducing the business share of the top five customers. BYD also plans to break the industrial closed loop and sell its power batteries abroad. And has signed a battery cooperation agreement with Chang 'an Group, its fundamental purpose is to reduce customer concentration risk.

Perhaps for hongqiao group, at this stage with Geely car and Volvo's partnership to open up the popularity, and then in China's hot new energy market to expand the new customer base, is the ultimate goal. Then the current listing of the No. 01 PHEV is the touchstone of the Hongqiao Group, and it is also a milestone for Geely in the power battery from the deployment of troops to formalspecial.

The page contains the contents of the machine translation.