LG Chemical and Ningde times have the same development path, and the ultimate goal is to enhance the cost advantage. It can be predicted that in the next 5 to 10 years, the competition between the two will become more intense. A few days ago, on Tesla’s “battery day”, Tesla released a brand-new “4680” battery, with a 16% increase in range, a five fold increase in energy density, and a six fold increase in power output. It did not bring a surprise to the market. The “million mile battery” jump ticket disappointed the capital market, which was waiting for a power battery technology revolution. After the press conference, disappointment spread to the whole power battery industry. As the most important partner of Tesla in China, Ningde times stock price also fell. Just a few weeks ago, the market value of the global power battery giant plummeted by more than 40 billion yuan, which was pushed to the forefront of the storm. < / P > < p > since this year, there have been a number of “spontaneous combustion” incidents of electric vehicles, which have led to discussions on the safety and maturity of NCM 811 ternary lithium battery technology route. The Ningde era, in which 811 battery technology is promoted in China, has also become the focus of the industry. < p > < p > in early September, a rumor from the battery and automobile industry completely ignited public opinion. It is said that Ningde era will give up the “811” battery and turn its internal focus to “523” as the main development direction. Affected by this, Ningde times stock price fluctuated violently. From September 7 to September 8, the total market value loss exceeded 40 billion yuan. < / P > < p > in response to the rumor, the relevant business leaders of Ningde times quickly refuted the rumor, saying that 811 will still be the main attack strategy of Ningde era, and multiple lines parallel has always been the core idea of the company’s development of cell business, and said that “this is the only way for the power battery to strive for the leading power and discourse power. If 811 is abandoned, it is to give up the high-end market.” < p > < p > it is understood that the 811 ternary lithium battery adopts the ratio of nickel cobalt manganese 8:1:1. Due to the higher nickel content, the energy density is improved, and the longer endurance of electric vehicles can be brought. At the same time, with the change of the proportion of positive electrode materials, the high cost cobalt content is further reduced, achieving low cost and high power consumption. Therefore, it has become one of the most mainstream battery technologies for electric passenger vehicles. < / P > < p > at present, mainstream battery suppliers, including Ningde times, LG Chemical and Panasonic, are mainly promoting this kind of high nickel and low cobalt batteries with frequent actions and fierce market competition. < / P > < p > in March this year, LG Chemical and POSCO signed a supply contract, which will purchase 125000 tons of high nickel cathode materials worth US $1.6 billion, so as to enhance the market competitiveness of high nickel batteries. Panasonic’s “2170” battery supplied by Tesla is also a high nickel battery. Not long ago, it also announced that it plans to increase its energy density by 20% in five years, which is enough to show the high nickel battery Emphasis. < / P > < p > so far, many automobile enterprises, such as Weilai, Weima, GAC, brilliance BMW, BAIC new energy and Xiaopeng, have carried the 811 battery of Ningde era, and the BMW ix3, which just appeared at the Beijing auto show, also carries the battery pack. It can be said that 811 battery is still the first choice of high-end electric vehicle brands, and Ningde times will not sit by and watch competitors encroach on this market. < p > < p > although 811 battery has super high power density and low cost, due to the high activity of nickel, when it is affected by external factors such as high temperature and impact, it is easy to lead to heat out of control, resulting in spontaneous combustion of battery fire, leaving potential safety hazards. < p > < p > this summer, GAC’s new energy aion s model had many spontaneous combustion accidents, and it was equipped with NCM 811 high nickel ternary battery provided by Ningde times. However, according to GAC’s recent response, the problem of vehicle spontaneous combustion may be due to the design of the battery pack, package and assembly, rather than the quality of the battery cell itself. According to the investigation of some securities companies, the spontaneous combustion of electric vehicles in May may may be due to the quality control problems of individual cells. Metal particles appeared in the battery, which led to piercing the diaphragm and causing fire, which had nothing to do with 811 materials. In addition to high nickel battery, LiFePO4 battery is also the choice of mainstream automobile enterprises. The biggest advantage is that the cost is lower and the safety is higher. However, compared with the high nickel battery, the battery life is not small. Most of them are used in pure electric vehicles below 400km. However, with the development of technology, the endurance performance of LiFePO4 battery is greatly improved. In March this year, BYD launched a high-profile “blade battery”, which took into account the long-term endurance performance of ternary lithium battery and the strong safety of lithium iron phosphate, which triggered a discussion on the market about the power battery line. < p > < p > in the past few years, LiFePO4 battery has been defeated in the competition with lithium ternary battery. As of 2019, ternary lithium battery has occupied more than 70% of the market share, and the line dispute between the two sides has disappeared for a time. The appearance of BYD’s “blade battery” may lead manufacturers to follow this technology, making lithium iron phosphate battery return to the competitive track. < p > < p > it is reported that Ningde times is also developing lithium iron phosphate battery technology, but the current endurance performance is not comparable to BYD’s “blade battery”. < p > < p > it is particularly noteworthy that in the second half of this year, domestic model 3 models began to use lithium iron phosphate batteries and ternary lithium batteries of Ningde era. With Tesla’s strong style of pursuing the ultimate cost, if LiFePO4 battery is taken as the mainstream technology route of power battery, it may have a significant impact on the whole power battery market pattern. This is not a good news for Ningde era, which focuses on 811 technology route. < / P > < p > 811 battery spontaneous combustion incidents occur frequently, which has a certain negative impact on Ningde era. Losing the champion position will make this global power battery giant “stuck in the throat”. < p > < p > according to the data of sneresearch, a Korean market research organization, in the first half of 2020, LG Chemical’s market share reached 24.6% (up 82.8% year-on-year), surpassing 23.5% (down 28.1% year-on-year) of Ningde era, and won the first place in the world. In July, LG Chemical once again exceeded Ningde era with 26.8% market share and 25.4% of Ningde era with Japanese supplier matsumo With 13% market share, it ranks third in the industry. The news of < / P > < p > is enough to amaze the market. It should be noted that from 2017 to 2019, Ningde era has been the king of power battery for three consecutive years. Last year, LG Chemical only ranked fourth. < / P > < p > why does LG Chemical’s market share soar and surpass Ningde era? The main reason is its rise in the European market and the growth of domestic Tesla sales. < p > < p > according to the data of CAAC, in the first half of this year, the sales volume of new energy vehicles in Europe increased by 52% year-on-year, reaching 403300 units, surpassing China as the largest new energy vehicle market, and LG Chemical, a power battery supplier of European automobile enterprises, also made a lot of money. At the same time, with LG Chemical entering the Chinese market for the first time through binding Tesla, as well as the domestic Tesla Model this year With the strong increase of sales volume, the battery shipment of LG Chemical also increased rapidly. According to the data of Research Department of power battery application branch, the installed capacity of LG Chemical in China reached 2.5gwh in the first half of this year, with a year-on-year increase of 44764.1%. However, Ningde times has not started to supply Tesla in the first half of this year. Affected by the epidemic situation and declining subsidies in China, the sales volume of new energy vehicles decreased by 44% to 335000 units, and the installed capacity of power batteries was about 17.5gwh, a year-on-year decrease of 42%. Under this situation, Ningde era can only watch the market share be swallowed up, while LG Chemical and Panasonic are still accelerating their penetration into China. Under this situation, expanding domestic production capacity and seeking development at sea have become the established strategic objectives of Ningde era. On the domestic side, in the 2019 annual report, Ningde Times announced four expansion plans for the battery factory, which are: to invest 10 billion yuan to build the cheliwan lithium-ion battery production base project in Ningde, with a capacity planning of 45gwh; the lithium-ion battery expansion project in Huxi will add lithium-ion batteries with an annual capacity of about 16gwh; Jiangsu power and energy storage lithium-ion battery R & D and production The project will add new lithium-ion batteries with an annual capacity of about 24gwh; the first phase of Sichuan times power battery project will add new lithium-ion batteries with an annual capacity of about 12gwh. In terms of going out to sea, Ningde era has already taken actions. In October last year, the construction of Ningde era’s first factory in Thuringen, Germany, was started. It is planned to put into operation in 2021, when batteries will be supplied to European vehicle manufacturers. Not long ago, Ningde times also reached an agreement with Indonesia to build a lithium battery factory in the country. At the same time, Ningde era issued $1.5 billion of overseas bonds to try to open up overseas financing channels and prepare for its overseas construction base and business expansion. < / P > < p > titanium media noted that due to the tight market share between LG Chemical and Ningde era, the industry’s discussion on the future “counter attack” of Ningde era also attracted attention. It is understood that LG Chemical’s biggest advantage lies in its relatively perfect global industrial layout. Kia and Hyundai in the South Korean market, GM and Ford in the US market, Volvo and Audi in the European market, Tesla and SAIC GM in the Chinese market are all its global customers. For this reason, LG Chemical does not worry about orders at all. Not long ago, LG Chemical announced that it had obtained 125 billion US dollars of orders worldwide and planned to further expand the production capacity of global factories, which is enough to keep its market advantage for a long time. In addition, the layout of LG Chemical in the industrial chain is also very perfect. In the upstream section, LG Chemical and Pilbara minerals, an Australian lithium mining enterprise, jointly built a lithium processing plant in Korea, and cooperated with nemaska Lithium, Ganfeng international, Kidman and other mining enterprises signed the lithium hydroxide supply agreement to ensure the supply of raw materials; in the midstream section, LG Chemical and Huayou new energy Co., Ltd. jointly established a company to produce lithium battery precursors and cathode materials, and purchase Shanghai Enjie lithium battery diaphragm products; in the downstream section, LG Chemical is also a global soft package giant, with higher safety performance of its soft package circuit, which is a lot of automobile enterprises In favor of. < p > < p > take Ningde times for example. According to incomplete statistics, it has obtained orders worth hundreds of billion yuan from international automobile enterprises such as BMW, Volkswagen and Volvo, and has established extensive cooperation with domestic automobile enterprises such as SAIC, GAC, Geely, Dongfeng and BAIC, and the number of orders will also increase in a blowout manner in the future. The influence and control of Ningde era on domestic battery industry chain should not be underestimated. According to interface news, Ningde times has strong control over the suppliers of positive and negative materials. By giving orders or participating in shares, the company has made material suppliers grow rapidly and become listed, making profits and dispersing risks. At the same time, Ningde Times announced on August 11 that it plans to invest 19 billion yuan in high-quality listed enterprises in the upstream and downstream of the industrial chain at home and abroad in the form of securities investment, so as to further enhance the industrial discourse power. < p > < p > generally speaking, the development paths of LG Chemical and Ningde era are the same, and the ultimate goal is to enhance the cost advantage. It can be predicted that in the next 5 to 10 years, the competition between the two will become more intense. The iPhone 12 keynote has been recorded in Apple park