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Why China’s lithium-ion battery is at the world forefront nowadays?

Lithium Battery Production

The automobile industry is a carrier of national industrial integration, and in the tide of its transition to electric power, the highest value-added power has become the new competitive focus of all countries, which is called the lithium-ion battery, this is a battlefield without guns.

Since 2017, the world’s lithium-ion battery market opened a new pattern, from the structural view of the lithium-ion battery occupies half of the country, driven by China’s lithium-ion battery market share exceeding 60%, completely surpassing Japan and South Korea, won the forefront.

In 2017, China’s lithium-ion battery shipped 37.06 GWH, of which the lithium-ion battery surged to 16.56 GWh, up 165% year on year, and emerge Ningde times, BYD Company, Guoxuan high-tech, Fu Neng, SmartPropel, and other lithium battery star companies.

Japan and South Korea’s lithium-ion battery basically withdrew from the Chinese market.

“The Japanese invented the lithium-ion battery, the Koreans made it big, and the Chinese are at the forefront,” says Zeng Yunqun, founder of the CATL, a high-level of the world’s lithium-ion battery competition.

Why our country’s powerful lithium-ion battery is at the forefront?

From the initial encirclement of the powerful enemy to the breakthrough of the encirclement, China’s lithium-ion battery industry has realized the leaping development of sowing, sprouting, growing, and rising in just a few years.

  1. Policy support

Since the beginning of the central financial subsidy in 2009, as much as ten billion per year, the cumulative total of one hundred billion special support funds for the development of the domestic new energy automobile industry has played a heavy “Nurturing” use. And “Automobile power battery industry standard conditions” and four groups of company catalogs from a certain form to achieve a “Precision breeding”, strong support of the independent brand vehicle and parts companies from scratch, from weak to strong.

2. Constant Effort

The policy has only created a favorable external environment for the development of the lithium-ion battery, but no matter how fertile the soil is, no matter how bad the bud seeds, it is difficult to cultivate a giant tree; no matter how big the furnace, no matter how lazy the blacksmith, nor can you forge a sword sharp enough. It is fitting to use the phrase “Self-hard” to explain the core reasons for the rise.

Back in 2006, when China’s autonomous power lithium-ion battery was just starting, new energy vehicles were still a “Gimmick” in the eyes of most people, and few people realized that they would become one of the “Seven strategic emerging industries” designated by the state, most people have no idea of the size, opportunities, challenges, or even the importance of lithium-ion battery in the future.

After a period of fumbling, with the quiet start of new energy vehicles, the domestic industry gradually realized the importance of power lithium-ion batteries, but at this time the Japanese and Korean battery companies took advantage of the first-mover advantage of consumer batteries, has formed the independent brand technology, scale, cost, channels, and other comprehensive suppression.

No Doubt, under the circumstances, the procurement of foreign products “Time-saving products and guarantee”, for the vast majority of autonomous vehicle companies, from the point of view of the company’s business is “The best choice”; Choose a starter lithium-ion battery or build your own battery plant, some of the voices used at the time were “Immature, unreliable, difficult to guarantee, who is responsible for the problem, too much input, no relevant experience,” and a lot of heckling.

Fortunately, most of the independent companies did not adopt the road that was “The best choice” at that time. Otherwise, China’s new energy vehicles, which were included in the “Seven strategic emerging industries”, would repeat the mistakes of traditional cars once again. It is not an exaggeration to say that, again after three decades of “Hollow” development, again by people “Choke” will be a highly probable event.

So, on the basis of nothing, CATL, BYD, Lishen, Guoxuan, SmartPropel, and other companies began to work hard, Bite the bullet to develop power lithium-ion battery technology, breakthrough one restriction after another, through countless tests, verifications, optimizations, stereotypes, and improvements, the gap with the foreign power lithium-ion battery has been gradually narrowed. It’s a little-known hardship.

Our efforts have paid off. Our Own brand power lithium-ion battery products have started supporting domestic complete vehicle companies in succession, including passenger cars battery, special purpose vehicles AGV battery, moped scooters, bikes batteries, and other markets. From the technical route, nickel-metal hydride batteries, manganese lithium-ion battery, and iron phosphate lithium-ion battery have been close to or even in step with the international advanced level by the end of fifteen, and NCM battery has also begun to accelerate the process of R & D and industrialization.

The lithium-ion battery is the link between raw materials and the vehicle, driven by a number of battery systemsmonomer manufacturers such as BYD, Lishen, and SmartPropel, china’s own brand in the field of raw materials also realized from scratch, from weak to strong robust growth, and to participate in close combat with Japan and South Korea.

For example, as one of the four major components of the powerful lithium-ion battery, its important raw material — lithium hexafluorophosphate — will be imported in large quantities by 2010, while lithium hexafluorophosphate accounted for about 50% of the low cost at about 67,000 USD per ton, with a gross margin of 75 percent, the market is dominated by three Japanese companies, Morita Chemical, Guandong electrification, and central nitrate. But after independent research, a number of independent companies to break the Japanese technology monopoly, which was even more than the world’s production and quality first. The market price of the products of the Japanese companies that lost their advantages also dropped rapidly to less than 34,000 yuan per ton.

In addition, Sequoia, Beitre respectively won the world’s largest lithium-ion battery, negative materials producer title, Cathay Huarong, star source materials also in the field of electrolyte, diaphragm.

Looking at the overall situation of China’s power lithium-ion battery industry, there are rich lithium mineral resources in the upper reaches, as well as key raw materials such as cathode, cathode, and electrolyte, and manufacturing equipment can also be completely nationalized; looking at the lower reaches, china has the world’s largest market for new energy vehicles, and the current independent brands have almost monopolized the market share. The government has also created a favorable policy and subsidy environment, the next three years will be a golden period for lithium-ion batteries.

Although China’s power lithium-ion battery industry still has problems such as low concentration, overproduction, and imbalance between supply and demand, from the perspective of development, we have reason to believe that on the basis of the existing industry, there will be more “SmartPropel” internationally competitive in the years to come.