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Enterprise capacity planning is outrageous

According to the statistics of the China Chemical and Physical Power Industry Association, as of the end of 2017 alone, the production capacity of domestic power batteries had reached 228Gwh, while the installed capacity of domestic power batteries during the same period was less than 40Gwh, with a capacity utilization rate of less than 20%. Many enterprises blindly increase investment and expand production capacity without any technical reserves or market share, only to find that after the factory building is completed, the products cannot compete with each other and cannot receive orders, leaving them vacant. The same problem also occurs in various raw material industries such as separators, positive electrodes, and lithium carbonate.

Foreign investment is about to open up, battery companies are about to face global competition

According to the plans of various car companies, joint venture new energy vehicles will enter the market on a large scale in 2018. In fact, plug-in hybrid new energy vehicles, including BMW, Audi, Ford, Buick, etc., have been officially sold in the first half of the year, and sales have been quite good due to the green license policy. At the same time, foreign companies such as Panasonic and LG have even adopted batteries, such as the Ford Mondeo and Buick VELITE5. It can be foreseen that the days when domestic battery manufacturers and Japanese and Korean battery companies compete on the same starting line are not far away, and the pressure can be considerable.

There is still a gap in the foundation of the entire vehicle factory

Although unwilling to admit it, in terms of the manufacturing level of the entire vehicle factory, the quality gap between domestic cars and joint venture cars (imported cars) is still significant. Although we hope to overtake on new energy curves, relying solely on lithium-ion batteries is clearly not enough. Chassis technology, whole vehicle, manufacturing process, quality control, and other aspects are all indispensable. The progress of these technologies is far from just a day's work and requires sustained and long-term investment.

Not being impetuous, not rushing forward, making products with dedication is the right path

There are many industry problems and challenges encountered, but fortunately, there are still many enterprises that are working hard and working hard, and whether it is battery factories or vehicle factories, the progress in recent years has also been very obvious. We believe that the development direction of the entire industry is not wrong, and the prospects and goals of the industry are not problematic. As long as enterprises calm down and take each step, a rainbow will eventually come after the rain.

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