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Power battery PACK market $186.3 billion! Ningde / BYD / SAIC are all fighting.
Jul 27,2020 16:08CST
translation
The content below was translated by Tencent automatically for reference.

SMM News: as we all know, PACK, as a key step in the production, design and application of new energy vehicle power battery system, is the core link between upstream battery production and downstream vehicle application. The PACK group technology level of power battery pack is directly related to the power performance and safety performance of electric vehicles. Whether it is Ningde era, Guoxuan Hi-Tech, Funeng Technology and other battery enterprises, or SAIC, Guangzhou Automobile, Weilai and other vehicle enterprises, attach great importance to PACK.

Although this year encountered the epidemic "black swan", but the manufacturers' enthusiasm for the construction of PACK production line has not diminished. Recently, Suzhou an has successfully signed a contract to settle in Banan Economic Park with a total investment of 50 million yuan and plans to build a new lithium battery PACK production line, which is mainly engaged in scientific research, production and technical services of military lithium power system. The project is expected to be completed and put into operation in December 2020 and will reach full production within five years, with an annual output value of about 200 million yuan.

It is understood that Suzhou an relies on power mainly engaged in new energy lithium power system research and development and manufacturing, with original plug-in lithium battery PACK technology, can reduce security risks, greatly improve the safety and reliability of lithium battery packs, and according to customer requirements for unlimited arbitrary combination to meet a variety of different needs. The technology has been widely used in electric buses, electric passenger cars, electric logistics vehicles, electric motorcycles, electric ships, AGV, UAV, energy storage and other fields.

In addition, in early July this year, Micro Macro Power's power battery PACK plant in Ludwig, Brandenburg, Germany, was completed. The plant will be used to produce power battery systems for trucks, trucks, sports cars and off-road vehicles, and plans to launch its first production line in March 2021, starting with battery modules and packs for European customers.

According to the person in charge of Weihong Power, the total investment in the first phase of the plant will reach 43 million euros (about 340 million yuan), with an initial planned annual production capacity of 1.5GWhh and an annual production capacity of 300000 to 500000 battery modules, which can meet the battery needs of 10, 000 to 30, 000 electric vehicles. In the later stage, the annual production capacity will be further expanded to 6GWhh, which will be able to meet the battery needs of 50,000 to 70,000 vehicles.

It is worth noting that Jiangxi far East Battery recently reached a cooperation with VinFast of Vietnam, and the completely independently developed battery package products have been highly recognized by VinFast and successfully shipped. It is understood that this time to provide Vietnamese customers with 21700 cylindrical cell system integrated PACK products, electricity up to 90.3 kWh, energy density above 150Wh/kg, mileage up to 560km and supporting liquid cooling technology, can meet the needs of high-end vehicle customers at home and abroad.

In recent years, battery enterprises and vehicle factories have invested in self-built or co-built PACK plants for a variety of purposes such as cost reduction. At present, domestic battery manufacturers such as Ningde Times, BYD, Guoxuan Hi-Tech, Lishen, Funeng Technology, Bick Battery, Yiwei Lithium Energy, Weihong Power, AVIC Lithium, Evergrande New Energy and so on are all involved in the field of PACK.

In the main engine plant, including Great Wall, Guangzhou Automobile, SAIC Volkswagen, SAIC General Motors, Changan, Hezhong, Jinkang, Guoneng, Tianjin FAW and other car companies have joined the ranks of self-built PACK. At the same time, the construction of PACK plant by joint venture between mainframe factory and battery factory or third-party PACK factory has become commonplace, such as Guangzhou Automobile and Ningde era, SAIC and Ningde era, Dongfeng and Tianjin Lishen, Changan and BYD and so on.

It is obviously convenient for battery companies to get involved in the field of PACK. It holds a large number of battery data of different operating states of electric vehicles, and the maturity and iterative upgrade of the core algorithm of the PACK system depends on the construction of a huge basic database. Power battery manufacturers have natural advantages in algorithm. This makes the power battery manufacturers have a unique advantage in the dominance of PACK. Battery companies usually adopt the "BMS+PACK" mode and master a complete set of core technologies from power battery cell to battery pack.

Due to the main engine factory's involvement in the PACK field, it can fully understand the whole manufacturing process of the battery, effectively define the best battery design and specifications, as well as its manufacturing process, and guide battery suppliers to carry out customized production according to the needs of car companies. Based on the above reasons, it is necessary and necessary for more and more main engine factories to set foot in the field of PACK by purchasing batteries to do their own assemblies.

In fact, in the power battery PACK market competition, vehicle enterprises also have their own irreplaceable advantages. The whole vehicle enterprise not only has the convenience of producing and selling the PACK produced by itself, but also has the advantage of better grasping the optimal matching degree between PACK and electric vehicles. Through the self-construction and co-construction of PACK plant, automobile enterprises can not only reduce the purchasing cost of power battery, better meet the consistency requirements of battery system, but also optimize the battery supply system to enhance the purchasing discourse and further enhance the competitiveness of enterprises in the new energy vehicle market.

As early as 2019, car companies have become an important main force in the power battery PACK market. Including BYD, Changan, Weima, Weilai, the Great Wall, brilliance BMW and so on have achieved substantial growth in installed capacity. Judging from the current situation, the main engine factory is the main engine factory in the passenger car market PACK, while the battery factory is the main battery factory in the special purpose vehicle and bus market PACK. The industry predicts that the share of mainframe factories in the PACK market is expected to continue to grow in the future.

In contrast, the third-party PACK manufacturers, their industry status is constantly being weakened. In November 2019, Oriental Seiko plans to sell 1.5 billion yuan to CDH Ruixiang and CDH Ruipu, just two years after Dongfang Seiko bought Plade for 4.75 billion yuan, reflecting the increasingly awkward position of third-party PACK manufacturers.

"on the one hand, the battery enterprises are expanding to materials and battery packs, and on the other hand, the whole car factory is also expanding to battery packs, so a completely independent third-party PACK manufacturer like Pryder has become a chicken rib." Industry analysts pointed out that most of the PACK market of power batteries has been occupied by battery factories and car companies, leaving a very limited living space for independent third-party PACK enterprises. Of these, 60 per cent of the battery PACK is made by battery companies and 70 per cent of the battery PACK is done by battery companies, while it accounts for almost 100 per cent of the bus industry.

There is no doubt that battery enterprises and mainframe factories will be the absolute main players in the field of power battery PACK in the future. With the vigorous development of the new energy vehicle industry, the production scale of the power battery PACK industry is also increasing year by year, and these PACK players will also benefit.

Data show that the installed capacity of global power battery PACK in 2019 is 115.21 GWh, an increase of 18.16% compared with 97.5 GWH in 2018. The industry estimates that by 2023, the global power battery PACK market will reach 186.3 billion US dollars (about 1.2739 trillion yuan), and the prospect is very broad.

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