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The trend of "monopoly" of 13000 power battery-related enterprises in China has intensified.
Jul 27,2020 08:05CST
translation
The content below was translated by Tencent automatically for reference.

SMM News: China's new energy vehicle market began to start in 2009, since 2014, financial subsidies and other related policies began to be introduced, the whole new energy vehicle industry has entered a period of rapid development, so the power battery industry continues to develop. According to the company's investigation, as of July 2020, there are nearly 13000 power battery-related enterprises in China.

As can be seen from the table, the registration of power battery-related enterprises in China has shown a straight rise in the past ten years from 2010 to 2019. The industry has entered a period of explosion since 2015, with 2016 being the fastest growing year, with 1865 annual registrations, an increase of 81.95 per cent over the same period last year. The number of registrations in 2018 and 2019 were close to 3000, 2937 and 2982 respectively.

In the first half of 2020, due to the impact of the epidemic, the production and sales of new energy vehicles in China decreased significantly, and the demand for power batteries decreased synchronously. According to the China Automotive Power Battery Industry Innovation Alliance, the installed capacity of power batteries in China in the first half of the year was 17.5 GWH, down 41.8% from the same period last year. Since April, the market began to improve gradually. In June, the production and sales of new energy vehicles in China continued to pick up, and the installed capacity of power batteries also increased with the increase. In that month, the installed capacity of power batteries in China reached 4.7 GWH, an increase of 34% compared with the previous month.

Correspondingly, the number of new registrations of power battery-related enterprises in China in the first half of 2020 was 1227, with the largest number in June, with more than 300 new registrations, an increase of 14.39% from the previous month.

According to the analysis of the new energy market in the first half of the year, the power battery circle in China is extremely lively. In order to improve their own industrial chain, more and more car enterprises deepen their cooperation with power battery enterprises. Toyota Motor and BYD set up a joint venture, Volkswagen Group invested in Guoxuan Hi-Tech, Daimler Group invested in Funeng, and so on. At the same time, the state has issued a series of policies to stimulate the consumption of new energy vehicles, in which the frequently mentioned power exchange mode has also become a new breakthrough in the field of power batteries this year, attracting more and more new players.

However, it is undeniable that the cruelty of the epidemic still caused some small and medium-sized micro-power battery companies that lack the ability to resist risks to stop in the first half of 2020, and finally chose to cancel and revoke the company. In addition, the oligarchy of the power battery industry and the accelerated withdrawal of second-line power battery enterprises have long been the trend of the times.

According to the data of China Automotive Power Battery Industry Innovation Alliance, from January to June 2020, a total of 59 power battery enterprises were equipped with vehicles, 5 fewer than the same period last year. During this period, the top three, the top five and the top 10 power battery companies installed 12.6GWh, 14.5GWh and 16.4GWH respectively, accounting for 71.9%, 82.9% and 93.8% of the total load, respectively.

Based on this, enterprise survey data show that a total of 331 power battery-related companies have revoked / cancelled since the first half of 2020, and the number of notes / cancellations reached 90 in June, an increase of 73.08 per cent from the previous month. A knockout round in the field of power batteries is accelerating.

However, the fierce competition among head enterprises also reflects the market demand for power battery technology upgrading. Power battery enterprises must have strong technological innovation and R & D capabilities, financial strength and so on in order to stand up in the competitive market. With the continuous development of the industry, the market has more and more stringent conditions for the selection of power battery enterprises. Enterprise inspection data show that at present, there are 3061 power battery-related enterprises with registered capital of 500-10 million, accounting for 20%, and 4438 enterprises with registered capital of more than 10 million, accounting for 29%.

Only with leading and irreplaceable technology, large-scale cost advantages and other enterprise characteristics, can it gain a foothold in the market, which is also the key to the distance between head power battery enterprises and small and medium-sized enterprises. From the CTP battery system products based on ternary lithium batteries in Ningde era to BYD blade batteries, and then to the cobalt-free batteries released by Honeycomb Energy, the market demand for technology is getting higher and higher, and the innovation and research and development of the industry has never stopped. At the same time, the three technologies have also promoted the technological progress of the power battery industry and consolidated their position in the industry.

Vice Minister of Industry and Information Technology Xin Guobin mentioned at a news conference held by the Information Office of the State Council on July 23, 2020. at present, China has promoted a total of 4.5 million new energy vehicles, the industrial development system is becoming more and more perfect, the upstream and downstream of the power battery and other industrial chains have basically been connected, and the energy density of the power battery unit has reached 250wh/kg.

But for now, according to the draft of the New Energy vehicle Industry Development Plan (2021-2035) issued by the Ministry of Industry and Information Technology in 2019, domestic sales of new energy vehicles are expected to reach 25% in 2025, while those of Intelligent Network connection vehicles account for 30%. According to the data from December 2014 to April 2020, the highest proportion of new energy vehicle sales in China is no more than 9%. The penetration rate of new energy vehicles in April 2020 was only 3.5%. There is a big distance from the national planning target of 2025, and new energy vehicles still have a lot of room for growth.

Next, according to the new product plans of the major new energy vehicle manufacturers, the domestic new energy vehicle market will usher in more and more new energy vehicles coming on the market one after another in the second half of the year, and the choices provided to consumers will also be greatly increased. With the increasing maturity of the industry, the improvement of the performance and safety of new energy vehicles is bound to enhance the acceptance of downstream consumers to new energy vehicles. As the core product of new energy vehicles, the power battery industry will face greater market demand and challenge space in the future under the development trend of global electrification.

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