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Foreign Battery Companies Have Limited Impact on the Domestic Market

Introduction: Since 2015, new energy vehicles have entered a period of change, known as the automotive industry's once-in-a-century period, accelerating toward electric,intelligent, interconnected, and shared development. China's auto market is currently the world's largest auto market, and people in the industry refer to 2018 as "the first year of electric car consumption."

In 2020, the subsidies for new energy vehicles in China will be fully retreated. Enterprises in Japan, South Korea and other countries that have been watching China's power battery market for many years are actively preparing for the layout and plan to enter the Chinese market as soon as possible. On the other hand, under the strong support of government policies for many years, China's power battery market has made considerable progress, and many excellent battery companies have emerged in the industry, both in scale and technology.
Closely Introduced Policies Have Limited Impact on the Market
From the introduction of new energy subsidy notification in 2016, to the implementation of the “double-integration” approach in 2017, and to a series of policies to adjust and improve new energy subsidies in 2018, driven by policies, China’s new energy automotive industry has achieved encouraging results in recent years. The battery market is very large, and it is also attractive to foreign companies. Foreign capital is inevitable. However, after years of development, domestic battery companies, lithium-ion equipment companies and other industrial chain companies have greatly improved their technical strength and scale. Subsidies will be fully retreated by 2020. Then battery companies such as South Korea’s Samsung and LG will enter the Chinese market, and there are certainly impact on China's battery companies, but it ismuch smaller than the impact of China's early development of the battery industry.

Allow "Take Precautions" and Refuse to "Help Seedlings Grow"

The Technology Road map for Energy-Saving and New Energy Vehicles issued by the Ministry of Industry and Information Technology requires that, by 2020, the energy battery power density of a pure electric vehicle must reach 300Wh/kg. It can certainly be done in the laboratory, but the cost is high, the cycle performance is not good, and the indicators of battery integrity are still lacking. In 2020, 300Wh/kg power battery production and large-scale application need to take into account the market conditions, allowing "take precautions" in the process of technological development, and resolutely put an end to "help seedlings grow".

Technology Determines Location with Intensified Industry Competition

The prospects for the new energy automotive industry are promising. In recent years, a large number of power battery companies have emerged at home and abroad, and competition is unavoidable. On the other hand, with the weakening of policy support, the performance requirements of power batteries for new energy vehicles are getting higher and higher, and the industry reshuffles are intensified. In the past few years, affected by policies, some companies lacking technology and awareness of products have entered the domestic market, leadingto over capacity in low-end production. This exists in the field of power batteries and new energy vehicles. Both the power battery and the new energy automobile industry will reshuffled. Only companies with the core technology can gain a firm foot hold in the future market competition.

Power BatteryTechnology Restricts Industrial Development

Power battery technology is one of the key factors restricting the development of the new energy automotive industry. Many people simply think that the automotive power battery is just combining more 18650 batteries for digital products into modules and battery packs in a series and parallel manner. However, in fact, there is actually a very big gap between the two. Although the specificationsare all 18650, the 18650 used in digital products and the one used in power batteries have a very big difference in the subsequent technical processing. Most of the digital products use 18650 single cells. The number of series and parallel connections is about single digit, and there is no excessiver equirement for the number of cycles, which is basically about 500 times. New energy vehicles need to organize thousands of 18650 batteries into battery packs and battery panels, which can ultimately be used to power new energy vehicles.

Constantly Innovate Technology and Promote Industrial Development

In order to achieve long-lasting endurance and safety, the power battery must be processed through a variety of technical means such as internal thermal blocking, open circuit, pressure relief, isolation, and buffering, in addition to the more stringent selection of anode materials. In order to ensure the safety and stability of the battery system, it can maintain the efficient and reliable operation of the vehicle in extreme environments. At present, Finern Automation has built an 18650 lithium battery automated production line to provide a comprehensive assembly test program for the lithium battery 18650, promoting the development of the energy automotive industry. Finern Automation always insists that companies can only respond to unpredictable market dynamics by continuously innovating and intensifying their technological R&D efforts.

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