Welcome the TWh era and start the construction of new 40GWh production capacity in Ningde era.

Only a month after spending 39 billion yuan and announcing a big expansion of production capacity, the Ningde era has already started vigorously. A few days ago, Liyang City, Jiangsu Province, held a centralized project start ceremony in January. Among them, Jiangsu Times Power and Energy Storage Lithium Battery R & D and production Project (Phase IV), with a total investment of about 12 billion yuan. The project will build 12 global advanced lithium-ion large cell production lines and corresponding modules, battery pack production lines, after completion is expected to increase production capacity 40GWh.

In fact, Ningde Times invested in the Yangtze River Delta base project for lithium-ion batteries in Liyang as early as 2016, with a design capacity of 50GWh.In 2017, it joined hands with SAIC to build a joint venture production base and design capacity 36GWh in Liyang. At present, 24 core lines, 15 module lines and 8 Pack lines have been completed and put into production, and the remaining 12 core production lines planned by the two bases will also be put into production in 2021.

Zeng Yuqun, chairman of Ningde Times, said earlier that Liyang would be built into the largest lithium-ion battery manufacturing base in the country and even in the world. At this point, the total investment of Ningde era in Liyang will exceed 30 billion yuan, which will become the "bridgehead" in the global strategic layout of Ningde era. Liyang lithium-ion battery production capacity is also expected to break through 126GWh. become the world's most influential battery energy storage industry production base.

It is understood that the Liyang project, which started this time, is an important part of the plan to expand battery production capacity of 39 billion yuan before Ningde era. In December last year, Ningde era issued three expansion and investment announcements in succession. Among them, the first project plans to invest no more than 12 billion yuan and plans to build the Jiangsu time project (Phase IV) in Liyang, Jiangsu Province; the second project is to invest no more than 10 billion yuan to build a power battery manufacturing base in Yibin, Sichuan; the third project is to invest no more than 17 billion yuan to build a Fuding production base in Ningde, Fujian Province.

In addition to this 39 billion yuan, Ningde era has also been rapidly expanding battery production capacity. In February last year, Ningde Times invested 10 billion yuan in the construction of Ningde Cheliwan Lithium Project. At the same time, the Ningde era is also scheduled to increase nearly 20 billion yuan to invest in expansion, and the new production capacity is close to 100 GWh. Coupled with the existing production capacity, according to the forecast of Soochow Securities, the new production capacity in Ningde era is expected to reach more than 300GWh in the next few years.

Welcome the TWh era

In recent years, major countries around the world, including China, Europe and the United States, Japan and South Korea, have made great efforts to develop new energy vehicles, and the global power battery market shipments have maintained a trend of rapid growth. According to the global lithium battery statistics released by the international authority SNE in 2020, the installed capacity of global power batteries reached 137 GWH in 2020, maintaining an increase of 17%. Among them, 34 GWH was installed in Ningde era, ranking first in the world for 4 consecutive years.

According to the latest market research report released by Markets and Markets, global electric vehicle sales will reach 10.79 million by 2025, with a compound annual growth rate of 32.57%. It is estimated that the global lithium-ion battery market will exceed $100 billion by 2025. The forecast of the Power Battery Application Branch is more optimistic. It is estimated that by 2025, the annual sales of new energy vehicles in the world are expected to exceed 15 million, and the demand for power batteries will exceed that of 900GWh.

It is understood that at present, the customers of Ningde era include almost all mainstream car companies at home and abroad, such as Tesla, Lulai, BMW, Mercedes-Benz, Changan, Volkswagen, Volvo, Jaguar Land Rover, Toyota, SAIC, BAIC and so on. It is not difficult to imagine that with the acceleration of the global electrification wave, orders brought by the huge business groups of Ningde era car companies "moments" will accelerate in the next few years.

"in the next 5 years, the lithium industry market will usher in a blowout period and quickly enter the TWh era. High-efficiency, high-quality delivery is an important core competitiveness, we compete with the world's top players, upstream and downstream must go all out to meet the challenge. " Zeng Yuqun, chairman of Ningde Times, said that starting from 2021, there will be a significant increase in the global market demand for lithium batteries, but on the supply side, the growth of capacity supply in the whole chain is relatively slow and the effective supply is insufficient.

Open the mode of large-scale purchase

In order to improve the supply of production capacity and quickly form the delivery capacity, the Ningde era has also opened the mode of "large-scale procurement" of manpower, equipment and materials. In terms of manpower, it is reported that the Ningde era has been busy recruiting workers and catching up with orders recently. Ningde Times posted a notice on a recruitment website that due to the surge in year-end orders, in order to encourage everyone to stay and work overtime during the Spring Festival to ensure company shipments, ad hoc major bonus incentives.

In terms of equipment, in the past year, Dazu Laser successively received orders of 1.194 billion yuan from Ningde Times and its holding subsidiaries; Jingshi Electric, a wholly owned subsidiary of Huazi Science and Technology, received a fixed point letter from Ningde Times and its holding subsidiaries, totaling about 530 million yuan; Haimu Star received 8 orders for high-speed laser machines from Sichuan Times, a wholly-owned subsidiary of Ningde Times, with a total amount of about 392 million yuan. Leading Intelligence and wholly-owned subsidiary Titan New Power have received about 3.228 billion yuan in total equipment orders from Ningde Times and its holding subsidiaries, while Yinghe Technology has received 1.44 billion yuan from Ningde Times equipment orders.

According to incomplete statistics, since 2020, more than 10 equipment enterprises, including Big Laser, pilot Intelligence, Yonghe Technology, Haimu Laser, Today International, Huazi Technology, Nebula shares, Chaoye Precision, Zhengye Technology, Naconor and other equipment enterprises have won more than 7.5 billion yuan orders in Ningde era.

In terms of materials, Ningde Times plans to purchase 10, 000 tons of battery-grade lithium carbonate and 3000 tons of battery-grade lithium hydroxide from Weihua, and to increase capital Fulin Seiko, which will build a new project with an annual output of 50, 000 tons of new energy lithium cathode materials. after the project is completed and reaches production, its products will also give priority to meet the procurement needs of Ningde era. Hunan Yuneng has a total design capacity of 50,000 tons of lithium iron phosphate in 2020, of which the lithium iron phosphate production line in Suining, Sichuan Province has been put into production in the second half of 2020.