Compared with Japanese and Korean battery giants, the gap between China's battery manufacturers is mainly reflected in the two aspects of safety and consistency. Among them, in terms of safety, there will be excess capacity in the new energy battery in the future, but industry competition will be beneficial to the survival of the fittest, and companies that rely on innovation and quality survival will have significant development. Therefore, companies must not ignore the string of quality if they want to achieve significant growth. At present, China's new energy automotive industry is experiencing rapid growth. Because of its rapid development, as its core component power battery, the demand gap has further expanded in the past two years. According to news from BAIC, JAC, SAIC and other vehicle manufacturers, the manufacturers all said that due to insufficient supply of power batteries, they have begun to affect the output of their new energy vehicles. Power battery attracts huge investment There is a demand in the market that will surely be targeted by smart business people. It is understood that due to the increase in demand for power batteries, many power battery manufacturers look for business opportunities, and have already seized the time to expand production capacity. For example, Panasonic, LG Chemicals (Korea’s largest integrated petrochemical company) and Samsung SDI (an affiliate of Samsung Electronics Group in the electronics industry) have all 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 production in September 2015, and it can produce 40,000 batteries for pure electric vehicles annually; In July, LG Chemicals completed the construction of a battery plant in Nanjing with an annual capacity of 100,000 new-energy car batteries. In December 2015, Panasonic stated that it will build a battery plant in Dalian and it is expected to officially start production in 2017. The annual production of batteries will then be available. 200,000 new energy vehicles are used. In addition to foreign-funded enterprises, domestic power battery manufacturers with distinctive features, such as Guoxuan Gaoke Power Energy Co., Ltd., Tianjin Lishen Battery Co., Ltd., BYD Auto Co., Ltd. and Yiwei Lithium Energy Co., Ltd., have also significantly increased their power lithium batteries. Investment in the field, and accumulated certain technical strength in the batteries, power battery packs, battery management systems, and energy storage battery packs. According to incomplete statistics, the new investment in China's power lithium battery industry exceeded 100 billion yuan in 2015, which to a certain extent promoted the pace of development of China's new energy vehicles. However, such a huge amount of investment has also attracted the concern of the industry. Experts said that the current investment boom in the power battery industry may lead to excess battery 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. Huang Yonghe, chief engineer of the China Automotive Technology and Research Center, said: "From the perspective of various manufacturers competing to expand production capacity, the power battery may face excess capacity in the future." There is a gap in security and consistency In recent years, due to the rapid development of China's automobiles, complaints from automobiles have also been increasing. Many complaints related to new energy vehicles are often related to batteries. According to reports, during the “3.15†period this year, regarding the complaints about new energy vehicle consumption, the three major problems of cruising range and propaganda, charging degree and promotion, and battery failure caused serious power failure have become complaint hot spots, and these issues are related to the battery. . According to relevant experts, compared with Japan and South Korea's battery giants, the gap between China's battery manufacturers is mainly reflected in two aspects, namely, safety and consistency. 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. In terms of consistency, in the domestic battery production process, some production process parameters are not required by foreign companies, resulting in relatively large product differentiation. Ren Yong, general manager of Chongqing Chang'an New Energy Automobile Co., Ltd., said: "The battery quality of domestic enterprises may be better, but if the vehicle company wants to use it, it will be better abroad. This is because the consistency of foreign batteries is better. It is the key.†The production control points for foreign manufacturers’ power batteries are as many as thousands, and domestic manufacturers cannot achieve such strict quality control levels. Product quality is a non-negligible factor. In this regard, the industry sources said that the power lithium battery industry can not only meet the access to state subsidies and increase production capacity, but should also improve the technical innovation, quality control, brand building and other internal strength. “The power battery is a highly-concentrated technology and capital industry. The products require high reliability and consistency. Technology R&D, capital strength and management level are all indispensable.†The safety of batteries restricts the safety of electric vehicles. It is understood that for the stability of the battery life cycle, China has done a lot of research. Tests have shown that the battery is prone to thermal runaway problems when it is done around 900 times. After 3 to 4 years of normal use, the battery may still continue to be used. The remaining capacity of the battery is also maintained at more than 80%. However, its safety issues, as well as battery safety supervision and troubleshooting, are worth our continued attention. Yi Weili lithium energy chairman Liu Jincheng said that the future of new energy batteries will have excess capacity, but the industry competition is conducive to the survival of the fittest, rely on innovation and quality of survival of the company will have considerable development. Therefore, companies must not ignore the string of quality if they want to achieve significant growth.
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