The rapid expansion of the global new energy vehicle market and diversified supply demands have provided opportunities for the rise of some competitive domestic second-tier power battery companies.
On the one hand, the overall competition pattern of domestic power batteries is not yet completely finalized. To ensure the stability of battery supply, OEMs are actively introducing multiple battery suppliers and constructing a diversified supply system, thereby driving the growth of installed power of second-tier battery companies.
Specifically reflected in the domestic installed power rankings in 2020, AVIC Lithium has benefited from the increase in the penetration rate of batteries for GAC Aian’s main models to achieve a significant increase in installed power and market share; Hefei Guoxuan and Top New Energy support explosive models Hongguang MINI EV achieved a significant increase in the installed capacity of passenger car LFP batteries; Honeycomb Energy increased its supply from external customers to achieve rapid installation; Ruipu Energy combined with SAIC-GM-Wuling to break into the top ten domestic installed capacity.
On the other hand, the further increase in demand for power batteries from international OEMs and the acceleration of new energy business in China also provide opportunities for Chinese second-tier battery companies to enter the international supply chain. In addition to the Ningde era, a number of second-tier battery companies in China have reached cooperation with international OEMs.
In terms of international business, AVIC Lithium Battery has passed Smart mass production and began to supply batches to Guangqi Honda and Guangzhou Toyota; Volkswagen became its second-largest stake in Guoxuan Hi-Tech, and added Wanxiang 123 to supply its batteries. Daimler acquired a stake in Funeng Technology and signed a strategic supply agreement; Yiwei lithium-energy square ternary batteries were designated by BMW Brilliance, and ternary soft-pack batteries have been supplied to Daimler in batches; Honeycomb Energy received a huge amount from the French PSA Group Battery purchase order, etc.
The above changes indicate that as the power battery market continues to expand, the OEMs are strengthening cooperation with CATL, while also exploring opportunities for cooperation with second-tier excellent battery manufacturers. With the gradual release of production capacity and the increase of customer groups, the overall installed power and market share of second-tier battery companies will also further increase.
How to play second-tier battery companies
At present, CATL still occupies a major share in the domestic power battery market, but the further growth of China’s new energy vehicle market has released huge power battery procurement needs. A group of second-tier battery companies with strong competitive strength can also benefit from it and achieve rapid growth. Rise.
At present, the power battery business of a number of second-tier battery companies including AVIC Lithium Battery, Yiwei Lithium Energy, Hefei Guoxuan, Funeng Technology, Honeycomb Energy, Ruipu Energy, Xinwangda and other second-tier battery companies have achieved substantial growth.
However, in the above-mentioned second-tier battery camp, the competition strategies and market focus of each company are different.
AVIC Lithium Battery: Seed Player of the First-tier Echelon
In the second-tier battery camp, the fastest growing and the most eye-catching performance is undoubtedly the AVIC lithium battery.
According to data from the Advanced Industry Research Institute (GGII), in 2020, the installed power battery capacity of AVIC ranks fourth in China, with a market share of 6.08%. Among them, the installed capacity of Sanyuan ranks second in the country, and is firmly in the top position of the Sanyuan market.
From January to April 2021, the domestic installed capacity of AVIC's lithium battery increased by more than 4 times year-on-year, and the installed capacity surpassed LG New Energy to rank third.
Behind the rapid increase in the installed capacity and market share of AVIC's lithium battery, it has benefited from the continuous growth in sales of its supporting best-selling model GAC Aion S.
In May of this year, the 100,000th Aion S officially rolled off the assembly line, of which 75,000 power batteries were supplied by AVIC Lithium Battery, accounting for 75% of the total. Since January 2021, AVIC's lithium battery penetration rate has exceeded 90% for Aian series battery products.
At present, AVIC lithium battery is not only the core supplier of GAC Aian and Changan, but also successfully entered the battery supplier camp of the popular model Hongguang Mini EV, and achieved exclusive supply in some hot-selling models.
In addition, AVIC Lithium has also passed Smart's mass production fixed point, and began to supply batches for Guangqi Honda and Guangzhou Toyota. This means that the technical strength and product strength of AVIC Lithium Battery have been recognized by international OEMs.
From the perspective of the path to the rise of AVIC Lithium, AVIC Lithium’s competitive strategy first achieves a rapid increase in power battery installation by binding one or two core major customers, thereby gaining the favor of other OEMs.
At present, AVIC lithium battery is expanding on a large scale, sprinting to the first-line camp in terms of production capacity. On May 31, the AVIC lithium battery 20GWh power battery project settled in Wuhan; on May 29, the AVIC lithium battery 50GWh power battery and energy storage battery project settled in Chengdu; in addition, the AVIC lithium battery Jiangsu and Xiamen base battery projects are also accelerating.
Yiwei Lithium Energy: Pioneer of International Car Companies
Currently, CATL has become a supplier to international OEMs including Tesla, BMW, Volkswagen, Mercedes-Benz, and Hyundai. However, in order to ensure the stability of battery supply and reduce procurement costs, the above-mentioned international OEMs are also actively introducing new battery suppliers, and Yiwei Lithium has won the favor of many international OEMs.
Up to now, Yiwei Lithium Energy has obtained fixed-point supply letters and orders from international OEMs such as Daimler, Hyundai-Kia, BMW Brilliance, Jaguar Land Rover, etc. The international power battery business has developed rapidly, and overseas power battery shipments have grown rapidly.
In 2020, Yiwei Lithium Energy will achieve a revenue of 4.06 billion yuan for power batteries, a year-on-year increase of 93%, mainly due to the rapid growth of overseas sales of soft-packed ternary batteries. Also benefiting from the sufficient orders for soft package ternary batteries in the passenger car field, Yiwei Lithium Energy's power battery sales in the first quarter of 2021 increased by 302.2% year-on-year. It also expects that the company's 10GWh soft package production capacity will achieve full production and sales this year.
Recently, some media reported that Tesla is negotiating with Yiwei Lithium Energy, and Tesla may incorporate Yiwei Lithium Energy into the supply system of Tesla's Shanghai factory to increase the purchase of low-cost batteries. The partnership may be finalized in the third quarter of this year.
In this regard, Yiwei Lithium Energy issued a clarification announcement stating that as of the announcement date, there was no business communication with Tesla regarding lithium iron phosphate batteries, and the above report was unfounded.
However, from the perspective of Tesla's diversified supply demand and the competitive strength of Yiwei Lithium, it is not without opportunities for the two parties to reach cooperation in the later stage.
Honeycomb Energy: "External Supply" of Power Battery Speeds Up
As a new independent power battery power in Great Wall, Honeycomb Energy does not position it as the exclusive battery supplier of Great Wall, but aims at a larger external market.
With the gradual increase of customers from external OEMs, Honeycomb Energy’s power battery installed capacity has grown rapidly, ranking among the top ten domestic installed capacity.
From January to April 2021, Honeycomb Energy ranked 8th with an installed capacity of 0.57GWh, firmly standing among the top 10 domestic installed capacity camps.
Up to now, Honeycomb Energy has obtained 25 sales points including mainstream domestic and foreign brands.
In order to further meet market demand and sprint to the first-line echelon, Honeycomb Energy is actively expanding its power battery production capacity while actively exploring customers, and moving closer to leading companies.
On April 28, Honeycomb Energy's 11 billion yuan power battery production base project settled in Ma'anshan, with a planned annual production capacity of 28 GWh; in January and February this year, Honeycomb Energy invested 7 billion yuan in the construction of Suining Economic Development Zone in Sichuan and Huzhou, Zhejiang. Production of 20 GWh battery project.
Since January 2021, the total investment in power batteries announced by Honeycomb Energy has exceeded 25 billion yuan, with an additional planned capacity of 68GWh.
Ruipu Energy: The head force of the new power
Backed by the strong capital and mineral resources of the world's top 500 Tsingshan Industrial, Ruipu Energy has achieved a major breakthrough in the power market in just over three years after its establishment.
In 2020, Ruipu’s installed power capacity is 0.99Gwh, of which SAIC-GM-Wuling’s supply accounted for 73%, helping Ruipu Energy to rank among the top 10 domestic battery-powered companies
Since 2021, thanks to the sharp increase in battery support from SAIC-GM-Wuling, Ruipu Energy continued to maintain its position in the top 10 domestic power battery installations in January-February.
In addition to SAIC-GM-Wuling, Ruipu Energy's power market customers include Dongfeng, Weimar, Yundu, Yutong Bus, CRRC, Xiamen Jinlong, Foton Ouhui, Xugong, Sany, etc.
In order to firmly consolidate the position of the TOP10 power battery camp and further meet market demand, Ruipu Energy is also accelerating the pace of capacity expansion.
On March 31, Ruipu Energy invested about 10.3 billion yuan to build a 30GWh high-end power and energy storage lifepo4 battery and system project settled in Nanhai District, Foshan City; on April 23, Ruipu Energy plans to invest more than 30 billion yuan. Yuan, to build a Ruipu New Energy Industry Base project in Beiwan District, Wenzhou, with an annual production capacity of 100GWh after all are fully operational.
Ruipu Energy's goal is to achieve an annual production capacity of 200GWh by 2025.
Xinwangda: Digital PACK leading power to speed up
As the leader of digital PACK, Xinwangda deployed its power business earlier, but it was mainly in the stage of technical reserve in the early stage.
In recent years, as the company's battery cell production capacity has been gradually built and released, Xinwangda's power battery installed capacity has grown rapidly, and it has continued to increase investment in its power battery business.
In 2020, Xinwangda's power battery will be mainly used for Geely, Dongfeng Liuqi, Yundu New Energy and other auto companies. In 2021, Xinwangda's power battery business will accelerate.
Since 2021, Xinwangda has successively won the power battery projects of 5 OEMs including Dongfeng Liuzhou Automobile, Dongfeng Passenger Car, GAC, Geely and SAIC-GM-Wuling. In addition, Xinwangda has also reached cooperation with Renault Nissan, Easyjet, Volvo and other OEMs in the field of HEV batteries.
Xinwangda revealed that the company's designated power battery projects with other OEMs will also be implemented in the second half of the year, including international OEMs.
As of the end of 2020, Xinwangda's power battery production capacity has reached 10GWh, and it is currently accelerating the construction of the Nanjing new energy project. The total investment of the project is 12 billion yuan and the planned production capacity is 30GWh.
Companyname：Shenzhen Top New Energy Co.,Ltd.
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