Battery orders rely on car companies competing to set foot in upstream protection
Recently, the shortage of power battery raw materials, high price operation, forcing car companies to increase the product terminal price.In order to ensure the stable supply of power battery, car companies have set foot in the upstream industry chain, strengthen cooperation to control costs.”Power battery prices are up 15 to 20 percent this year.Some big factories have to snatch battery orders.”A well-known electric motor car market head revealed.At present, the production line of battery manufacturers is mostly in a state of full production and full sales. The batteries that have just come off the production line are quickly taken away and sold out.The rapid development of new energy vehicles and energy storage industry drives the demand for power batteries.GGII expects that by 2025, the global penetration rate of new energy vehicles will reach more than 25%, and the global shipments of power batteries will reach 1550GWh;At the same time, the energy storage market inflection point is accelerating, it is estimated that the global shipments of energy storage batteries will reach 416GWh in 2025.The transformation of traditional car enterprises to electrification is accelerating, and the new force of car making is growing.A few days ago, Weimar automobile, United Automobile, Zero running automobile, gaohe automobile successively submitted materials for listing in Hong Kong.Volkswagen expects half of its global sales by 2030 to be all-electric, with sales of at least five million.In the Chinese market, Volkswagen plans to deliver about 1.5 million new energy vehicles by 2025.BMW Group revealed that in 2022, its mass production and trial production of pure electric models will reach 15;A “new Generation” model based on the new architecture will be pre-produced in 2024 and unveiled in 2025;By the end of 2025, BMW Group plans to deliver 2 million pure electric vehicles worldwide.”Domestic production capacity of high-quality batteries is limited, and some high-end models of batteries are customized production. In order to deliver vehicles on schedule, some car companies have to increase prices to ensure battery supply.”The person in charge of the car enterprise said.Tesla CEO Elon Musk expects batteries to become a “limiting factor” in the industry within two to three years.”The development speed of the new energy vehicle market is far faster than the industry expectation, and the products of first-tier battery manufacturers such as BYD and Ningde Times are very popular.Although the battery factory has stepped up the construction of factories to expand production capacity, but the release of new capacity still needs time.”It is expected that domestic battery capacity will be released after 2023, which will ease the supply shortage.”A new energy industry analyst said.For power battery companies, soaring raw material prices are a challenge they need to face.Baichuan Yingfu data show that on March 23, the domestic battery grade lithium carbonate quoted at 517,500 yuan/ton;Domestic industrial lithium carbonate quotation is 497,500 yuan/ton, year-on-year increase of more than 480%.Recently, Ningde times has repeatedly raised the price of power batteries.”We adjusted the price of some battery products in response to the sharp rise in upstream raw material prices,” a source from Ningdetimes said.As early as the end of October 2021, BYD issued a price increase letter, and the price of CO8M and other battery products increased by no less than 20%.”Battery manufacturers are caught in the middle.”Although the cost of raw materials has risen sharply, we are worried that the price of battery products will be lost to the market.”Mr. Liu, head of a second-line battery manufacturer in Guangdong, told the China Securities Journal that the head battery factory has stronger bargaining power for upstream resources and has more resource reserves.Second – and third-tier battery factories dare not store large quantities of goods due to limited funds, but can only accept high current price of raw materials, and their profit margins are severely squeezed.Battery costs will eventually rise to the car transmission, and triggered the recent car prices.According to incomplete statistics, after the Spring Festival, more than 20 auto companies announced price increases due to rising prices of batteries and other raw materials.Among them, Tesla has raised the price for three times, and the price of many models ranges from 10,000 yuan to 20,000 yuan.Byd for the second time this year, the increase in the range of 3,000 yuan – 6,000 yuan;The prices of new forces such as Xiaopeng Automobile and Ideal Automobile rose by more than 10,000 yuan.Chen Shihua, deputy secretary general of the China Association of Automobile Manufacturers, said that this round of extraordinary price rises in raw materials, out of the normal supply and demand relationship.The pricing of upstream enterprises should return to rational, car companies should also be stable.In order to ensure the stability of the battery supply chain, automotive enterprises have been moving upstream.Byd owns the whole industry chain of power battery, semiconductor, vehicle R&D and production, and takes the lead in the industry.Sheng Xin lithium energy announced on March 22, plans to introduce BYD as a strategic investor through a directional share offering, plans to raise no more than 3 billion yuan, the two sides will carry out long-term cooperation in the field of lithium products.In terms of raw material purchase and sales cooperation, BYD plans to purchase lithium carbonate, lithium hydroxide, lithium metal and other products from Shengxin Lithium Energy, and the monthly demand quantity will be adjusted according to actual demand.In terms of raw material processing cooperation, BYD needs to entrust a third party to process lithium mineral resources, and under the same conditions, give priority to entrust Shengxin Lithium for processing.Sheng New lithium commitment, under the same conditions of priority to protect BYD lithium salt processing capacity;At the same time, the two sides will cooperate in upstream mineral resources, jointly seek high-quality mineral resources, drive the in-depth cooperation in upstream and downstream business and technology of the industrial chain, and guarantee the stability of supply and cost advantage.Volkswagen announced on March 21, with huayou cobalt industry, castle peak group signed a strategic cooperation memorandum of Volkswagen and huayou cobalt industry, castle peak holding a joint venture, the joint venture in Indonesia layout nickel-cobalt resources development business, creating new energy power battery with global competitiveness nickel and cobalt raw materials manufacturing system, the construction of advanced manufacture base of power battery material.It is understood that the joint venture company plans to build an annual production capacity of about 120,000 tons of nickel metal and about 15,000 tons of cobalt metal, which can meet the supply of nickel and cobalt raw materials for about 160GWh batteries.Formed at the same time, Volkswagen and huayou cobalt industry downstream joint venture company, mainly engaged in nickel and cobalt sulfate refining, ternary precursor and three yuan manufacturing business such as the anode material, strengthen the precursor, such as the anode material of the whole industry chain of technological innovation synergy, to develop internationally competitive new energy li-ion battery materials integration manufacturing platform.Volkswagen said the cooperation will help achieve the long-term goal of reducing battery costs by 30-50% in the Volkswagen Group, while continuously improving key performance such as power battery energy density through technological synergy.In view of the rising cost of raw materials, Chen Shihua suggested strengthening the upstream and downstream supply and demand docking of the new energy vehicle industry chain.The competent government departments and relevant industry associations actively organize and guide upstream and downstream enterprises to carry out industry self-discipline, advocate the formation of long-term and stable strategic cooperative relations between industries and enterprises, and avoid excessive short-term fluctuations of raw material prices affecting business plans.At the same time, accelerate the output of upstream projects under construction, and coordinate the construction of a reserve system;Accelerate the establishment of a recycling and utilization system, strengthen the traceability management of power batteries, standardize battery recycling channels, and speed up the establishment of a standard system for echelon utilization and recycling.