According to foreign media reports, the Ningde era (CATL) has already signed a small-scale electric vehicle battery supply agreement with Volkswagen and BMW. Under this induction, its "ambition" is not satisfied. With the help of some of the major suppliers of European car batteries, including Volkswagen and BMW, Ningde wants to build the company into a global leader in the production of electric vehicle batteries.
Ningde era said at the 67th Frankfurt Motor Show: "The Ningde era is currently competing with a number of battery suppliers for cooperation with Volkswagen's new MEB electric vehicle platform."
With the MEB platform, Volkswagen will become the world leader in electric vehicles, but its choice of suppliers of electric vehicle batteries has been delayed. This is why the Ningde era wants to do everything in its power to reach an agreement. According to the Ningde era, the company's electric vehicle battery capacity will reach 50GWh by 2020.
However, the Ningde era also hopes to establish battery supply cooperation with other European car companies, which is why it is not just an office in Germany. The Ningde era currently has offices in Germany, the main target customers are BMW and Volkswagen, while the office set up in France is mainly to attract Renault and PSA.
Other battery manufacturers in China, including BYD and Tianjin Lishen, are slightly inferior to the Ningde era in terms of energy density of batteries. According to the Ningde era, the current battery energy density has reached 270 Wh/kg.
In general, the Ningde era is hitting Korean battery manufacturers in the European market in the form of dark horses. The European Commission is also striving to create a cooperative alliance of European companies to promote the production of electric vehicle batteries, including some car companies.
Electric vehicle blowout era competition and opportunity coexist
IHS Markit predicts that the global demand for lithium-ion batteries for electric vehicles will reach 305 GWh by 2025, almost eight times that of the current stage. According to a report released by Exane BNP Paribas financial analysts in February, the battery capacity demand of the automotive industry will reach 600GWh in 2025. Volkswagen expects its electric vehicle sales to account for 25% of total sales by 2025. Based on this, IHS predicts that global battery capacity will reach 680 to 700 GWh.
LG revealed this year that it will build a 295,000-square-foot facility near Detroit in 2018 to produce electric vehicle parts. LG Chem also plans to expand capacity at the Holland plant in Michigan this year, and its battery plant in Poland is also starting construction this month. Panasonic Electronics has also established a partnership with Tesla to promote the production speed and cost of electric vehicle batteries.
All major car companies are increasing their stakes in electric vehicles. IHS forecasts that the share of electric vehicle sales is expected to increase from the current 1.4% to 15% by 2025, mainly driven by government policies. Both France and the United Kingdom have indicated that they will ban gasoline and diesel vehicles from 2040, and China has introduced a similar scheme. All major auto companies are expanding their lineup of electric vehicle products. GM said it will launch at least 20 new pure electric vehicles and hydrogen fuel cell vehicles in the global market by 2023; Ford said it will add 13 electric models, including hybrids, in the next five years.
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