Batteries are the "gathering place" of core technologies for new energy vehicles. Recently, I heard that several major domestic automakers are in contact with battery companies such as Samsung SDI and LG Chem from South Korea, and Panasonic from Japan, discussing the possibility of forming joint ventures. Will forming joint ventures hollow out my country's core battery technology? This possibility certainly exists. Some may think this is alarmist, but a recent announcement reveals some clues.
Recently, Shuguang Group announced that it has decided to invest 35 million yuan to form a joint venture with Neusoft Reach and Samsung SDI to produce and sell lithium battery packs and chargers for new energy vehicles. The announcement indicates that the joint venture will not involve core technologies such as battery R&D or production. In my opinion, it seems more like Samsung SDI will supply battery cells, Neusoft Reach will supply BMS technology, and they will sell battery packs to Liaoning Shuguang Automotive Group.
It is understandable for car companies to form joint ventures, but if they do not master the core battery technology, my country's new energy vehicles may repeat the mistakes of traditional car joint ventures.
Currently, most multinational automakers' new energy vehicles use batteries from Japan and South Korea. For example, Panasonic supplies batteries to TSLA, Samsung SDI supplies batteries to Audi, and LG Chem supplies batteries to Mercedes-Benz. However, in reality, the product quality of excellent domestic battery companies is no less than that of Japanese and South Korean batteries. For instance, the batteries for the BMW X1 electric vehicle come from CATL, and the batteries for all London double-decker buses are supplied by Microvast Power.
To capture market share, South Korean battery companies attract domestic automakers with low prices. An industry insider revealed to the author that if their products don't use inexpensive South Korean batteries while competitors do, their products will be at a price disadvantage. Samsung SDI's financial statements show that its lithium-ion battery business has been operating at a loss for years. Despite the rapid growth of its lithium-ion battery business, the losses have not decreased but have actually increased, which is contrary to economic principles.
An industry insider told the author that Samsung SDI, backed by the Samsung conglomerate, is not afraid of years of losses; while domestic battery companies are relatively weak and cannot withstand consecutive years of losses. This difference in financial strength puts domestic battery companies at a disadvantage in market competition.
Currently, the trend of domestic automakers choosing Japanese and Korean battery brands is becoming increasingly apparent. To my knowledge, several major automotive groups are negotiating joint ventures with Japanese and Korean battery companies, with models similar to Shuguang Group's joint venture, which essentially do not involve core technologies such as battery R&D and production. If this trend continues, it will have two negative consequences: first, domestic automakers will become complacent, lacking the motivation and desire to actively master core battery technologies; second, it will squeeze the market space of domestic battery companies.
From the perspective of market competition, it is understandable for domestic car companies to choose Japanese and Korean batteries from their own interests; however, from the perspective of the development of the automotive industry, the large-scale adoption of Japanese and Korean batteries by domestic car companies will lead to the hollowing out of the core technologies of my country's new energy vehicles.
Some might argue that Mercedes-Benz, BMW, and Volkswagen all use batteries from other countries and aren't worried about lacking core technology, so why should we be concerned? This is not the case. Recently, Volkswagen held a global battery tender, and several excellent Chinese battery companies participated.
Afterwards, the CEO of a battery company told the author that Volkswagen held the bidding conference to prepare for its own battery production. Global battery companies bidding for contracts inevitably submit a large amount of data and technical parameters, which Volkswagen could evaluate to determine its own technological path. Sure enough, shortly afterward, news broke that Volkswagen would be building a battery manufacturing plant.
TSLA used to rely on batteries produced by Panasonic of Japan, but now it has established its own battery research and development and production plant, which fully demonstrates that multinational companies understand the competitiveness and importance of core technologies.
my country has made remarkable achievements in the production and sales of new energy vehicles, but has not yet achieved satisfactory results in mastering core technologies. To promote the development of core technologies for power lithium batteries in my country, I would like to offer two suggestions.
First, the regulatory function of the "whitelist" for power lithium batteries should be fully utilized. Although the "Industry Standard Conditions for Automotive Power Batteries" is not a mandatory standard, it should serve as an important reference. It can keep inferior batteries out, which is conducive to regulating my country's power lithium battery market. Through the regulation of the "whitelist," companies can be freed from interference from local protectionism and prevent them from considering issues solely from their own perspective, thereby promoting the development of core technologies for power lithium batteries in my country.
Secondly, the national power lithium battery innovation platform should be fully utilized. Domestic automakers are generally less capable and cannot independently develop batteries like Toyota and Volkswagen; therefore, collaborative research and development is an effective approach. I believe that support policies for automakers should take into account their contributions to the innovation platform. If the innovation platform achieves significant technological breakthroughs, my country's core battery technology will not become hollowed out.
Battery core technologies are crucial to whether my country's new energy vehicle industry can catch up with leading automotive nations. Therefore, we must plan ahead and prevent the technology from becoming hollowed out.
