With the introduction of a series of encouraging policies by the country, China's new energy automotive industry is growing at a rapid rate. As the core component of its power battery, the demand gap has further widened. Companies such as BAIC, JAC and SAIC have all said that due to the shortage of power batteries, they have begun to affect the output of their new energy vehicles. As a result, many power battery manufacturers have spotted business opportunities and seized time to expand their production capacity. The top three global power battery manufacturers - Panasonic, LG Chemicals, and Samsung SDI have invested and built factories in China. Samsung SDI chose to cooperate with Anhui Huanxin Group, which ranks first in the field of domestic engine piston rings and cylinder liners. Its Xi'an plant was completed and put into operation in September last year and can produce 40,000 pure electric vehicle batteries annually. In October 2015, LG Chemicals completed its battery plant in Nanjing, which has an annual capacity of 100,000 new energy car batteries. In December 2015, Panasonic stated that it will build a battery factory in Dalian and it is expected to start production in 2017. By then, the battery produced each year will be used by 200,000 new energy vehicles. China's more competitive power battery manufacturers, such as Guoxuan Hi-Tech, Tianjin Lishen, BYD, Yiwei Lithium, Tianneng Power, etc., have all substantially increased the investment in the field of power lithium batteries, and in the batteries, power battery packs, battery management The system (BMS) and energy storage battery packs have accumulated certain technical strength. According to incomplete statistics, the new investment in China's power lithium battery industry exceeded 100 billion yuan in 2015. Industry insiders worry that the current investment boom in the power battery industry may lead to excess capacity in the future. More importantly, the current domestic large power lithium battery manufacturers are mostly transformed from consumer lithium battery manufacturers. The power lithium battery safety and technical standards are much higher than consumer lithium batteries, if the lack of technology accumulation, blind transformation, the market outlook will not be optimistic. "From the standpoint of manufacturers competing to expand production capacity, power batteries may face excess capacity problems in the future," said Huang Yonghe, chief engineer of the China Automotive Technology and Research Center. During the “3·15†period this year, regarding the complaints of new energy vehicles, the three major issues of cruising range and propaganda, charging degree and promotion, and battery failure caused serious power outages have become complaint hot spots, and these issues are all related to batteries. Compared with Japanese and South Korean battery giants, the gap between Chinese manufacturers is mainly reflected in two aspects. The first is security. Industry insiders point out that the current gap between domestic manufacturers is not small from the comprehensive capabilities of materials, battery packs, production processes, and quality management. The second is consistency. In the domestic battery production process, some production process parameters are not as high as those of foreign companies, leading to greater product differentiation. “It may be that the battery quality of domestic companies' single cells is better. But if the vehicle companies want to use them, it is still good for foreign countries. Why? Because the consistency of foreign batteries is better, this is the key.†General Manager of Chongqing Changan New Energy Automobile Co., Ltd. Ren Yong said that the production control points for foreign manufacturers' power batteries are as many as a thousand, and domestic manufacturers cannot achieve such stringent quality control. In this regard, Tianneng Ren, chairman of Tianneng Group, said that the power lithium battery industry can not only meet the access to state subsidies and increase production capacity, but also should be good technical innovation, quality control, brand building and other "internal work." "The power battery is a highly intensive industry with high technology and capital. Products require high reliability and consistency. Technology R&D, capital strength and management level are indispensable." There will be excess capacity in energy batteries, but competition in the industry will help the survival of the fittest, and companies that rely on innovation and quality will have significant development."
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