Japan 's Strategy And Current Predicament Of Lithium - Ion Enterprises In China

- Jul 25, 2017-

In fact, the Korean lithium enterprises in China's power battery industry strategic layout earlier and quite forward-looking.

Japan 's Strategy and Current Predicament of Lithium - ion Enterprises in China

As early as July 2013, South Korea SKI and Beiqi Group and Beijing Electric Control formed a strategic alliance, a total investment of about 1 billion yuan to set up a "Beijing Electric Control Love Science and Technology Co., Ltd.", the factory has a fully automated module Production line and semi-automatic battery pack wiring. But in March 2017, SKI announced that the company had stopped production at the end of last year with a reduction in battery orders. And before SKI in Chongqing, the three yuan cathode material factory, it is 700 million yuan to sell to the China Affairs Group.

June 2014, Samsung SDI and the Chinese enterprises set up a joint venture Samsung Star New (Xi'an) Power Battery Co., Ltd.. October 2015, Samsung's largest automotive battery production base - Central New (Xi'an) power battery project officially put into operation. In September 2016, the dawn of shares announced that the decision with the Neusoft Ruixi and Samsung SDI joint venture in Dalian to set up the company, production and sales of new energy vehicle power battery pack and charger.

According to reports, Samsung SDI originally planned to spend 600 million US dollars in 2020, for its plant in Xi'an to install more battery production line. But in the second half of 2016, Samsung SDI production line in Xi'an, China has been idle for several months, Samsung SDI recently decided to reconsider the expansion of China's Xi'an battery factory plan.

LG Chemical is in September 2014 set up a new energy battery in Nanjing Battery Co., Ltd.. In October 2015, the company's power battery project officially put into operation, as LG's world's largest power battery factory, its annual output of the power battery for 100,000 new energy vehicles. February 2017 LG Chemical plans to expand its battery factory in Nanjing, China, plans to build an additional car battery factory and a small battery factory.

At the beginning of 2017, LG Chemical in Nanjing, China's power battery factory came out of the rumors, after media reports that its production line has been basically idle, and is planning to sell the project to SAIC. In this regard, LG Chemical responsible person said that its Nanjing plant is currently running normally, and no related sales plan. But a number of unnamed LG chemical domestic materials suppliers and related vendors said its Nanjing factory soft battery power battery business is indeed affected.

Compared with SKI, Samsung SDI and LG chemistry, Panasonic's new energy vehicles in China, the time is significantly later, its power battery factory in Dalian to 2017 to put into production. However, in the capacity planning Panasonic is clearly more ambitious than the Korean battery manufacturers, Panasonic's goal is to make the battery business in China's annual revenue reached 100 billion yen (about 5.79 billion yuan). Among them, a project will build a production line, plans to begin production in 2017. Phase II project plans to start construction in 2017 will be five production lines, is expected to all put into production will achieve annual sales income of 5 billion yuan.

A few years ago, South Korea's battery companies in China after the strategic layout, with its excellent cost-effective immediately show a strong market competitiveness in the domestic electric vehicles, especially passenger cars in the field of rapid development momentum, rapid expansion of market share. Seeing the South Korean battery companies in the domestic attack on the city, will soon be the domestic lithium iron phosphate battery back to the prototype, and endanger the domestic three yuan battery business survival, the Ministry of Industry in May 2016 introduced the "new energy vehicle manufacturers and product access Management rules ", the direct use of administrative means Korean battery companies blocked in the directory outside.1500691760659066513.png

Due to access to the directory is a prerequisite for access to new energy vehicles financial subsidies, so the domestic new energy car prices have replaced the Korean power battery.

Up to now, the Ministry of Industry has issued a number of four "standard conditions" directory, a total of 57 power battery companies finalists, and Samsung SDI, LG Chemical, SKI, Panasonic and other Japanese and Korean battery giant has not yet entered the directory, resulting in Korean battery business In China's power battery business development has been greatly affected. In addition to industry policy factors, not long ago the uproar of the "Sade incident" political events also brought great distress to the Korean-funded enterprises.

I personally think that taking into account the domestic power battery enterprises (except CATL) R & D is generally weak, extensive production and management and quality control is generally poor, appropriate protection of domestic lithium enterprises is also necessary. But the use of this one-size-fits-all administrative means of Japan and South Korea outstanding power battery companies shut out, it is contrary to the spirit of market competition, and is not conducive to domestic lithium enterprises through the implementation of Japan and South Korea technology diffusion, digestion and absorption of Japan and South Korea to achieve domestic lithium Technological progress and promotion of enterprises. If you do for the US battery companies such as the year A123, the Ministry of Industry will also use the US battery companies so extreme means?

I do not think the Ministry of Industry can be a long time to Japan and South Korea power battery companies excluded, after some adjustments, such as accept the "market for technology" conditions in China to establish a research and development-based joint venture, or in the existing joint venture Enterprises to increase R & D investment, the Korean battery manufacturers will successfully enter the new energy vehicle market in China the key. Of course, the most important thing depends on the political relations between China and South Korea to pick up.

But because of the trend of deterioration of Sino-Japanese relations completely irreversible, I am not optimistic about the Panasonic power battery business development prospects in China. Japan and South Korea lithium enterprises in China how the fate, let us wait and see.