Now, the domestic auto market is still not pick up, and the new energy automotive industry growth also slowed down, as the key components of new energy vehicles battery industry has also been no small impact, according to the latest data show that in October 2019, China installed battery is about 4.087GWh, 31.03 percentage decline year on year, which is already three consecutive months the year on year decline.
Information show that in 2016 more than 200 enterprises to enter the battery power about the Ministry of Industry directory, only 90 more than in 2017, as of the first half of 2019, the survival of the battery business has dropped more than 60. Some experts predict that by 2020, the number of Chinese power battery business will fall more than 20, compared to 2016, battery manufacturers or eliminate 90% or more.
knockout escalating
this year, with the lion bankruptcy OPTIMUM technology and applications, battery manufacturers out of further escalation, we can see the current battery power cash flow situation is still not very good improvement, on the one hand, cost pressures affecting prices of new energy vehicles this whole new energy industry chain, payment period extended battery business accounts receivable and bad debt risk increased dramatically, tremendous pressure on the operation. On the other hand, the decline in production and sales enterprises repairer, battery competitiveness continues to increase, there is a big power battery business capital chain issues, can not continue to produce.
In addition to the downstream of new energy automobile enterprises funding chain pressure transmission, power battery business synchronization also facing upstream material prices ranking high and reality. With the cancellation of domestic battery whitelist, Japan and South Korea battery giant company has also returned to the domestic market. Due to lack of domestic battery enterprises exist in terms of competitiveness, therefore, be gradually phased out in the fierce competitive environment.
At the same time, due to the rapid expansion of other power battery market, a dominance phenomenon is more serious, according to statistics, in January-October 2019, before the battery 10 companies a total installed capacity has reached market share percentage 88, wherein only when NingdeOn behalf of a percentage share of the nearest 50, together with BYD’s share, the two companies market share exceeded 70%. Accompanied by two head company’s market share rising, eroding the remaining second-tier market space, competition among enterprises increasingly intense. And in the downstream battery manufacturers intensifies the pressure to survive, at any time the risk of being eliminated.
open up a new path
Therefore, in an unstable environment, the battery companies have started to develop other routes, we all know, in recent years, passenger car battery in three yuan Li-ion battery has become the first new energy vehicle manufacturers, however, with the back slope subsidy rate increase, ternary lithium battery is not in obvious advantages, but is less costly lithium iron phosphate is gradually obvious.
In fact, ternary lithium and lithium iron phosphate of both cells there is no absolute overwhelming, but each has its own characteristics, ternary lithium battery energy storage density advantages of both the cold resistance and, on the energy density, ternary lithium battery because of the high voltage, energy density to achieve substantially 240WH / kg, almost iron phosphate lithium battery 140WH / 1.7 kg of times. The second is that the low temperature resistance, ternary lithium low temperature lower limit value of minus 30 degrees, compared to the lithium iron phosphate at a low temperature of minus 20 degrees advantage limit. Finally is the price, although the energy density of lithium iron phosphate lithium battery is still less than three yuan. But the cost in terms of price but it has a clear advantage, that is to say after the subsidy back slope, lithium iron phosphate is more suitable for battery production control.
In addition to the technical route change, another way out of battery power enterprises to enhance market competitiveness is the energy storage market, you can see, the energy storage market in recent years and are optimistic about the battery into the race, and some power battery production Suppliers have also been made in the field of long-term storage deployment, while in other areas electrification, such as electric ships, electric machinery, electric aircraft and intelligent people wear products market, battery recycling and other fields, are also in constant acceleration deployment of strategic markets.
to expand overseas market
as a power battery manufacturer’s head of enterprise, there are already some have begun to layout the overseas market, as of now, BYD, NingGerman era, the country Xuan Tech and other companies already overseas markets, Ningde era in Germany Thuringia’s first overseas factory officially broke ground to start, according to the plan, the European plant construction area of 23 hectares, the production line includes batteries and module products are expected in 2022 forming 14GWh capacity, its products will support BMW, Volkswagen, Daimler, Jaguar Land Rover, PSA and other world-renowned car prices.
In Earlier, the National Hi-Tech, a wholly owned subsidiary of Xuan Xuan Hefei, China and India signed a joint venture agreement with Tata AutoComp , we intend to build a joint venture in India, including the main production design power battery and power battery module, development, verification and manufacturing, and battery management systems.
can be seen, while the domestic development of the industry meet resistance, there are already companies began to layout the overseas market, after all, in the next period of time, the global battery market will continue to exaggeration, the total demand will continue to increase, so the battery life production is still much room for operation, but how to plan their strategy and implementation.
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In battery manufacturers lose their competitiveness in the future, some of the manufacturers are not well and effectively control their own risk, cost increase, shortage of funds at the same time can only make their business worse, corporate profits and losses is not correct ratio, resulting in battery companies can not operate, one after another out of the industry.
At the same time, factors subsidies back slope and the environment by, battery companies are to fend for themselves, as well as the layout of their strategy to expand overseas markets, however, there are still some companies do not have the ability to survive, and for next year, the plight of the new energy automotive industry is also likely to increase again, to face a new round of reshuffle, out of battery power producers will be further expanded.