Is Korean battery back to China?

According to goods association on May 23, China and South Korea on May 24, industry minister talks, the two sides will discuss matters of electric vehicle batteries.

Recently have multiple signs that South Korea power battery is returning to the Chinese market. Since April, including Samsung, LG, SKI, Korea's three big battery company, high-profile launch of a new round of investment in China. On May 2, vice President of South Korea's Samsung electronics in niche lee visited the Shenzhen BYD. On May 22-24 in Shenzhen at the 13th China international exhibition on the battery, also has opened a Korean pavilion zone.

In contrast, the domestic lithium battery performance not ZengLi increment., according to new research to monarch electric power li-ion battery shipments grew by more than 30% in 2017, the leading company Ningde hin high-tech era, countries, such as lithium billion weft can shipments rose over 50%, but because of falling prices, appear the situation of incremental ZengLi not, since the first quarter of 2018, the situation is still continue.

In this case, China and South Korea and even Japan and South Korea will form the fighting power battery in China market?

National science and technology achievement transformation fund son new energy vehicles venture investment fund partner and President Jian-hua fang told reporters that compared with Korean and Japanese battery, China has unsurpassable advantages in the development of the power battery.

"First of all, China has the capability of the whole industry chain of form a complete set is Japan and South Korea. Second, China has a larger application market, application scenarios and adaptability of vehicle batteries, power battery enterprises in China have more say .The consumer level of lithium battery and car products are completely different, our application scenario for the experience accumulated over the years, the power battery enterprises do auto level have the very big help. Third, from the technology, China has already had certain competitiveness."

Killing will come?

SKI, Samsung and LG three Korean battery giant launched as early as 2014, power battery large-scale investment plan in China.

But because affected by new energy expenses, etc., since May 2016, the ministry will new energy cars and clear power lithium battery enterprise directory. From now on only enter the miit catalogue of lithium battery, can be used for new energy car assembly and enjoy the new energy subsidies.

As early as March 24, 2015, the ministry has been available in the auto motive battery industry standard conditions, the implementation on May 1st, 2015. Miit to take voluntary reporting of their testing, testing qualified listed in the catalog of new energy automobile application recommended models manner. From January 2016 to April, the ministry has published three batches of enterprise directory, a total of 25.

Then, China has released the new energy vehicles access rules revisions, car power battery products inspection standard directory, formed the power battery enterprises enjoy the "white list" of the new energy subsidies, but no a foreign battery company in the "white list". This also caused after using the Samsung and LG battery car companies, all emergency replacement battery supplier .A fatal blow to Korean battery, investment and business in China was forced to suspend.

Power battery industry in China under the aegis of policy on the scale and technology obtained the huge development space, and the birth of Ningde times such a unicorn.

If Japan and South Korea now power battery get chance to break the "blockade", it will bring to China's enterprises is larger the pressure of competition?

Jian-hua fang told reporters that the original policy cannot be called a "blockade", the ministry of industry from two points of view, is a security point of view, passenger discomfort share three yuan battery, so Korea is three yuan battery cannot access list. On the other hand, because involves the subsidies, subsidies from the taxpayer, government departments should be regulated.

"From the two angles were made some limitation, also said there is no clear Korea series battery cannot enter the Chinese market. I think now talk to them, the direction is said that you can use, but on can enjoy subsidies, personally, I think there won't be a big breakthrough."Jian-hua fang said.

On May 22, RGL association, China automotive power battery industry innovation alliance coalition of the public power battery and hydrogen fuel cell industry white list (first), Shenzhen BYD, the porch tech center, China battery, bak battery, weft lithium can, great energy, 21 companies such as Beijing plante, restore energy, the new Samsung ring (xi 'an) power battery co., LTD., Nanjing lg chemical new energy battery co., LTD., Beijing electronic control ace open three south Korean enterprises in science and technology co., LTD.

For Japan and South Korea series power battery will increase competition. Battery enterprises Jian-hua fang said very bullish on China, he thinks, may be within a year or two, Ningde era will become the world power battery unicorn.

"By China's own development over the years, I don't think Japan and South Korea have more advantages. Korean battery when playing as low as 1 yuan/Wh batteries price competition in the Chinese market, but the price is the biggest advantage of China now." Jian-hua fang said.

Trough industry?

From a global perspective, China's support for electric cars, the world's highest, production, market scale. China power battery shipments accounted for about 70% of the world.

Thanks to the complete industrial chain, and each link of the leading enterprises. But the development of each links in this year the bigger difference.

Since 2017, the upstream materials prices keep rising, and manufacturers to stock, lead to three yuan positive pole material price fluctuation is bigger.

The anode material enterprise common raw material price pressure conduction to the downstream battery enterprise, causing battery costs three yuan.

According to a Chinese people in the chemical and physical power industry association, as of May 2018, the ternary material price at about 22.5-235000 yuan/ton, compared with the beginning of 2017, prices rose by more than half, ternary power battery costs have gone up more than 30%.

At the same time, the cobalt product prices continue to rise since 2017, the international market high-grade metal cobalt prices since the beginning of 2017 to may this year has risen to 193.1% - 202.1%, low grade cobalt metal prices have gained 194.7% to 204.2%, an all-time high.

But the personage points out, price has a great deal of speculation. The characteristics of small metal that makes the market expected a great influence on prices. Strictly according to the relationship between supply and demand, with the use of 811 GW each corresponding cobalt powder falling demand a lot. Even by the output of 2 million units in 2020, estimates that if 60% is by 811, then pull only on the cobalt powder 5000 tons, is not enough to explain the performance of the stock price. So once expectations of cobalt change, the price will decline rapidly, new energy for the whole industry chain is all good.

Although the ternary material price rising, but the price of three yuan power battery already by the early 2017's 1.7 1.8 yuan/Wh down to the current 1.3 1.4 yuan/Wh. lithium iron phosphate battery pack price decline of 21% to 22%, and is generally believed that prices will continue to cut this year.

At the same time, many OEMS experienced a decline in performance. Such as BYD's report in the first quarter of 2018, net profit fell 83.09% year-on-year, Yutong bus also appears subsidies is greater than the net income.

A strong revell can capital chain rupture event.

BaoXiao Lin billiton gold capital management co., LTD., a partner and President of the same period in the 13th China international battery show meeting, said so far, can be said to be the new energy automotive industry is relatively low, but is because is relatively low, is also increasing, we need a good time to invest. The outbreak of the future industry really will appear in the field of passenger cars.

He pointed out, and at the same time be aware power battery structural overcapacity. China's overall capacity construction scale power battery has been serious advance, capacity utilization fell. Access to the threshold of the subsidies increase year by year, many production capacity already do not meet the requirements of high energy density.

The page contains the contents of the machine translation.