The “Siege” power battery “front wave” to catch up with Tesla’s first step.

Mercedes took the Ningde era. Recently, The Ninde Times (CATL) announced that it is the supplier of batteries to Mercedes-Benz. Ningde Times said the two sides will jointly develop leading battery technology to support the large-scale electrification of Mercedes-Benz models. Why say “Benz won the Ningde era” instead of “Ningde era won Mercedes”?

Because the Ningde era is currently one of the hottest enterprises in the new energy vehicle power battery industry, not so much the Ningde era needs Mercedes-Benz such as car companies to prove their business, but Mercedes-Benz needs the Ningde era such as battery enterprises to build their own new product layout.

After Tesla confirmed that new energy vehicles were a viable “new species” with huge commercial potential, traditional car companies began the process of accelerating their transition to new energy sources, both from a commercial point of view and under pressure from “carbon neutrality”. In the process of transformation, power batteries are actually the biggest key to the development of these car companies.

Mercedes-Benz recently invested 900 million dollars in Aforan Technologies, a Chinese power battery battery battery core maker, before announcing a partnership with the Ningde era. Not only Mercedes-Benz, in the first half of 2020, car companies began to intensively lay out the power battery supplier link.

Behind this, is the embodiment of anxiety of car companies, in fact, also map out the power battery has ushered in the development of key nodes.

Don’t let go of that Ningde era.

If the first Tesla Model S, officially delivered in 2012, is called the starting point for a new energy vehicle, the Panasonic battery it is built with is definitely a new starting point for the development of power batteries.

“Getting on the bus” has not been long since the power battery industry, but its history does not haunt a Chinese company, the Ningde era.

Strictly speaking, ningder, founded in 2011, is not a new company. All of Ningde’s management and research and development teams came from ATL, whose main business is class 3C lithium-ion batteries, just in time for the explosion of demand in the mobile phones, computers and other industries, and at which ATL has grown to become a leader in the consumer lithium-ion battery industry.

In 2007, China began to consider subsidizing the new energy vehicle industry, ATL pre-determined the huge business opportunities for new energy vehicles, so in 2008 set up the power battery division, and then independently for the Ningde era (CATL), once again on the industry, eat the huge dividend of power batteries.

Until the beginning of this year, Ningde era has been the world’s largest supplier of power batteries for the third consecutive year. This also makes the Ningde era inevitably become “the target of public criticism”.

There are two meanings of “the target” here.

First, car companies began to look for stable battery supply channels, Ningde era is the best target.

On August 4th, Ningde’s fixed-point shares were officially listed on the Shenzhen Stock Exchange. According to the previously announced listing, the fund will be raised by about 19.7 billion yuan.

This increase attracted 35 investors “competition”, including SAIC, Yutong, Honda and other auto companies to participate, and ultimately, GaoYu Capital and other 9 institutions to obtain a share, Honda is the only car companies to subscribe for success, but also through the way of capital for commercial cooperation to hand over a “guarantee.”

Second, it’s the competitors.

The world’s largest is not invincible, China’s second-largest power battery supplier BYD has been engaged in a war of words with the Ningde era over battery safety issues, and LG Chema successfully “reversed” in the first half of the year, becoming the world’s largest battery maker for electric vehicles in the first half of this year. A series of events marked that the dominance of the Ningde era had been held back.

LG Chem’s share of the electric vehicle battery market in the first half of this year was 24.6 per cent, up from 10.4 per cent a year earlier, according to Market Research. The Ningde era came in second with 23.5% of the market in the first half of the year, down slightly from 25.1% in the same period last year.

SNE Research attributed the increase to strong sales of Tesla Model 3, Renault Zoe and Audi e-tron, but industry analysts say Tesla is actually the biggest contributor.

In the first half of 2020, Tesla and its Model 3 were the top drivers of new energy vehicles and models worldwide, far ahead of them. Meanwhile, in Three First-tier cities, Beijing, Shanghai and Shenzhen, The Tesla Model 3 was the number one model in June, including new energy, fuel, and all price range. Shanghai’s Model 3 sold nearly three times as much as second-place Dvost.

Almost all of the current domestic Tesla Model 3is, which is powered by LG chemical batteries. LG Chemical also relied on a single enterprise for strong growth.

However, if the gross margin of LG Chemical has been negative for the past three years from a profit perspective, the Ningdera era has expanded its profit margin against the trend in 2019. As a result, the leader of the power battery industry has not yet had a clear answer.

The power battery came to the stage.

Despite the global market for electric vehicles, it does not prevent power batteries from becoming a new target for car companies.

According to the Automotive Business Review, Ideal Car CEO Li wanted to be interviewed in early 2019 and said the way for automakers to find cooperation in the Ningde era was “the way the chairman came to their queue to ask for batteries, and we finally found that the core of the electric car must be the battery.” Tesla also announced earlier this year that it would partner with the Ningde era to use Ningde-era batteries in some of its home-grown Tesla cars.

As the saying goes, don’t put eggs in one basket, especially in batteries, the core of new energy vehicles, for a well-logical car manufacturer.

So, starting this year, a roaring “hunting” power battery operation began.

After the Ningde era, Yiwei Lithium Energy may become BMW’s second power battery supplier in China, Volkswagen and Ningde era after the cooperation to buy about 1.1 billion euros of Guoxuan Gawker 26.74 percent of the stake, become its largest shareholder, and it is reported that Wanxiang 123 will become the third power battery supplier in China, the order size of more than 10 billion yuan;

“Car companies need to control batteries, not be tied up by battery manufacturers.” An industry source commented.

This sentence is relevant to the purpose of the car company. There have been several previous cases of delays in the delivery of electric vehicles due to a lack of battery capacity.

In early 2020, Jaguar I-Pace and Audi e-tron were discontinued and reduced due to a lack of supply of LG’s chemical power batteries, which is not an example. LG Chemi is also in a production capacity dilemma in 2019, with Samsung SDI, another power battery supplier, abandoned by the public because of a lack of capacity.

As a result, the control of stable battery channels, not “stuck neck”, has become the focus of car companies, especially the recent start to accelerate the laying of electric transformation of the traditional car companies focus on the goal. The most direct way, of course, is to invest in equity, or even buy- and ensure a stable supply. Among them, Yiwei Lithium Energy, Guoxuan Gaoke and other Chinese suppliers have become the “hunting” object.

Why is there a large-scale demand at this point in time?

One central reason is that the major car companies have set a time point in transition to new energy sources, most of which are focused on 2025. As Volkswagen Group says it will sell 2 million pure electric vehicles in 2025, Volvo says global sales of new energy vehicles will reach 1 million units by 2025, and almost all auto companies will claim that new energy vehicles will account for about 20% of total sales by 2025, with more radicals such as Honda, who hope to account for two-thirds of new energy vehicle sales by 2030.

If you follow a car’s development and production cycle of 18-24 months, now is the time to get the battery resources in hand in advance. Predictably, there will be a number of cases of deep binding between power battery companies and car companies in the next 1-2 years.

“The tight tie between the automobile and power battery companies is conducive to the ability of the vehicle manufacturer to control costs and improve its bargaining power and strengthen the manufacturer’s voice in the industrial chain during negotiations with the battery companies.” On the other hand, the current limited power battery capacity, which can not meet the power battery enterprises will effectively reduce the cost of battery purchase. “The secretary-general of Zhongguancun New Battery Technology Innovation Alliance, Yu Qing, said in an interview with First Financial.

This is another important node of the power battery.

SNE Research’s data predict that global demand for powered batteries for electric vehicles is expected to be 406GWh by 2023, while the supply of power batteries is expected to be 335GWh, a shortfall of about 18%. This situation is expected to worsen by 2025, with a supply shortage of about 40%.

In this case, the car companies will be more refined to ensure that sales and the supply of core components are completed. And through this service, the power battery as the car’s core products, but also officially stand in front of the stage, to accept the ultimate test of the market.