BYD power battery planning capacity has exceeded 100GWh

On September 9, the BYD Xi'an Cloud Track Demonstration Line project started, and the BYD 30GWh power battery project signing ceremony was held concurrently. According to the battery China network statistics, up to now, BYD's existing under construction and contracted power battery project capacity has reached 100GWh. Among them, the newly launched and planned projects under construction this year have reached 84GWh, and the speed of BYD's power battery capacity expansion is somewhat amazing!

BYD operates, under construction and contracted to plan production capacity

According to Battery China.com, as of the end of 2017, the total production capacity of BYD's power battery is 16GWh, of which 6GWh is a ternary battery and 10GWh is a lithium iron phosphate battery. On June 27, 2018, BYD planned a capacity of 24GWh Qinghai power battery. The factory is officially offline and is expected to be put into production in 2019. On July 5, BYD signed a strategic cooperation agreement with Changan Automobile to establish a power battery joint venture with a planned production capacity of 10GWh. On August 23, BYD and Chongqing Bishan District Government on the power battery year the 20GWh industrial project signed an investment cooperation agreement; on September 9, BYD's 30GWh power battery project signing ceremony was held in Xi'an High-tech Zone. At this point, the total production capacity of BYD's power battery has reached 100GWh. According to the statistics of the Power Battery Application Branch, the national power battery shipments in 2017 were only 44.66GWh, and only BYD's contracted capacity exceeded twice this number, not to mention the power battery shipments in BYD on the Ningde era!

Since the beginning of this year, BYD's power battery capacity expansion rate is almost "crazy." Behind such "crazy", you can see that BYD is determined to regain the battery title, and it can be seen that under the circumstance of clear technical routes and promising market prospects, large enterprises are accelerating the staking. Competition in the battery market has entered a stage of white-hot, and large companies are squeezing the market share of SMEs by continuously expanding production scale.

BYD's "ambition" is intended to regain the hegemony?

BYD, which started with batteries, has a history of 23 years. The company grew into the world's second largest rechargeable battery manufacturer in 2003, and in the same year, BYD Auto was formed. With a strong accumulation and leading technology, it was surpassed in 2017 by a Ningde era that was established only seven years ago and has been unknown until 2014. The data shows that the installed capacity of BYD's power battery in 2017 was 5.43GWh, while the Ningde era easily exceeded the installed capacity of 10.4GWh.

It can be said that being overtaken by the Ningde era is BYD's own opportunity. BYD has always insisted on holding high the flag of lithium iron phosphate, but the subsidy policy adjustment of new energy vehicles has made the ternary material battery rise from 2014. The Ningde era of lithium iron phosphate + ternary material walking on two legs has achieved rapid development and leapfrogging opportunity.

Not only that, BYD believes that the "vertical integration mode" BYD has not opened the power battery supply until 2018, which also gives the Ningde era sufficient development space. By the time of BYD's return to God in early 2017, the Ningde era has become unstoppable, and it has surpassed the sales volume and the number of cooperative car companies, and it is far behind. According to the data, in 2017, the number of BYD power battery models was 78, and the number of supply vehicles was only two, while the number of supporting vehicles and supply vehicles of Ningde era power batteries reached 390 and 64 respectively.

BYD's slow half-shoot on the battery technology route and external cooperation made it miss a lot of opportunities. After awakening, BYD began to fully activate the ternary material battery in the passenger car, and began to force the ternary material battery capacity. The data shows that before 2018, the total production capacity of BYD Shenzhen and Huizhou battery factories was 16GWh, including 10GWh of lithium iron phosphate and 6GWh of ternary materials. The annual production capacity of 24GWh Qinghai Power Battery Factory, which was put into operation in June this year, is basically a ternary battery. The projects signed by BYD are expected to be based on ternary batteries.

In addition, BYD has also made enthusiasm in foreign cooperation, and even to reduce the concerns of vehicle manufacturers, BYD has begun to split the battery business and seek independent listing of the battery business. Wei Shen, deputy general manager of BYD's lithium battery division, said that BYD is doing business divestiture of power battery, and it is expected to be split at the end of 2018 or early 2019. In 2022-2023, BYD's power battery company will be listed separately.

Leading enterprise capacity expansion accelerates industry overcapacity anxiety

Since the beginning of this year, there are not a few companies that have expanded their power battery capacity. For example, South Korea's LG Chem's 32GWh power battery project is located in Nanjing, Jiangsu. The annual 20GWh power battery project is signed in Zhenjiang, Jiangsu Province. South Korea SKI has an annual output of 7.5GWh power battery. The project is planned to be built in Jintan, Jiangsu Province. Thornton New Energy will produce 5GWh high-energy density power battery. According to the data released by the Ningde era, its production capacity will reach 31.1GWh in 2018 and 54GWh in 2020. In addition, Ningde era has signed agreements with Changan, Dongfeng, GAC and SAIC to form a joint venture to jointly produce power batteries. This part of the production capacity has not been announced.

Although the development prospects of new energy vehicles are promising, the production and sales volume of new energy vehicles will be a process of steady growth, and the demand for power batteries is difficult to reproduce the blowout growth. The Power Battery Application Branch predicts that if the sales volume of new energy vehicles in China is around 2 million by 2020, the market demand for power batteries is only 119GWh. Judging from the current public data, the production capacity of the two giants in Ningde and BYD has far exceeded this figure. What's more, there are dozens of power battery companies in the second and third echelons, which are ambitiously expanding new projects! Undoubtedly, if this new production capacity is reached, it will not only aggravate the risk of overcapacity of power battery in the future, but the competition will be more intense. The days of small power battery companies will be even more difficult.

The page contains the contents of the machine translation.