The company's first core product is its self-developed lithium iron phosphate battery cell, which leads the industry in terms of overall pack volume utilization and volumetric energy density. Using this cell significantly improves overall pack safety while reducing the number of battery pack components and substantially lowering costs.
According to the plan, the independent battery company will begin construction by the end of this year and will have a 26.8GWh mass production line completed by 2025, capable of meeting the market demand for pure electric and hybrid vehicles. Initially, it will primarily supply batteries to Aion and other companies within the GAC Group, steadily increasing its market share. In the future, it will actively expand into external markets and engage in market-oriented operations.
The Juwan Tech Battery Production Base project will construct new cell production workshops, PACK workshops, R&D testing centers, pilot production workshops, and battery safety laboratories, producing cells, modules, and PACK systems that cover advanced energy storage devices such as XFC (eXtreme Fast Charging) high-speed charging power batteries.
Recently, news that NIO has "bought a mine" has sparked heated discussions in the industry.
Ahead of the National Day holiday, Blue Northstar Limited, a wholly-owned subsidiary of NIO, entered into a strategic financing transaction with Greenwing Resources, an Australian mineral exploration and development company, to jointly advance its exploration plans for the San Jorge salt lake lithium project in Catamarca Province, Argentina.
Prior to this, in May of this year, NIO announced its plan to invest 219 million yuan to build 31 R&D laboratories for the research and development of lithium-ion cells and battery packs, as well as one lithium-ion cell prototype production line and one battery pack production line.
Coincidentally, GAC Group has also set its sights on self-developed batteries. Compared to NIO's relatively modest investment of 200 million yuan, GAC Group is reportedly spending a fortune, establishing Green Engine Battery Company with a total investment of 10.9 billion yuan. Simultaneously, its invested company, Guangzhou Juwan Technology Research Co., Ltd., will invest 3.69 billion yuan to build a battery production base to mass-produce cells, modules, and PACK systems for high-speed charging power batteries.
In addition to Tiangong Battery, Magic Cube Battery, Tanjia Battery, and Dayu Battery, more and more car companies are turning their attention to batteries.
Industry insiders are concerned about this, and from the perspectives of motivation, feasibility, and benefits, it may be just a dream for automakers to develop and produce their own batteries.
In 2022, a wave of battery manufacturing swept through China's automotive industry. New energy vehicle manufacturers should have been working hand-in-hand with power battery companies, but the relationship has become more delicate, with new energy vehicle manufacturers starting to venture into the power battery market.
Some automakers are planning to develop their own power batteries.
At the end of August, GAC Group passed two board resolutions in one day: first, to invest 10.9 billion yuan in the research and development of its own batteries, and then to allocate 3.69 billion yuan to its shareholding company, Guangzhou Juwan, to build a production base.
Earlier this year, NIO also allocated 218.5 million yuan to build 31 battery R&D laboratories, one lithium-ion cell trial production line, and one battery pack production line in Jiading, Shanghai.
Some car companies choose to use joint ventures or equity investments to "bring in" someone they consider "one of their own".
In February of this year, Li Auto, known for its frugality, invested 400 million yuan in Sunwoda; in August, Honda and LG Energy announced a joint venture to build a battery factory in the United States; in September, JAC Motors reached a cooperation agreement with BYD Battery, Zhejiang Energy Storage, and Anhui Ankai, with a total investment of 1 billion yuan to build a joint venture battery company.
These moves send a clear signal: new energy vehicle companies are no longer satisfied with simple supplier relationships and are beginning to try to gain more say in the market.
The problem is, with cars selling so well, why would a new energy vehicle manufacturer think of competing for the power battery business?
How do automakers manufacture batteries?
Over the past century, the automotive industry has reached a consensus that no single automaker can independently develop and manufacture all parts and systems, and automakers are accustomed to obtaining solutions and products directly from suppliers at various levels.
However, when it comes to power batteries, many OEMs are trying to bypass layers of suppliers and control the batteries themselves.
Previously, many automakers had established their own power battery teams, such as BYD, which started as a battery manufacturer, and Great Wall Motors, which created SVOLT Energy (formerly Great Wall Power Battery Division). However, these companies were only a minority, and their involvement in the battery market dates back more than a decade.
The vanguard of the current wave of battery manufacturing is Tesla, a celebrity in the automotive industry.
According to LatePost Auto, NIO is developing its own lithium manganese iron phosphate (LFP) and 4680 battery technologies and plans to mass-produce these two types of batteries for use by NIO and its sub-brand Alps. Tesla's 4680 batteries, when installed in its vehicles, have effectively improved vehicle range and enhanced vehicle body strength, making them very popular with consumers.
According to Xiao Lei's understanding, NIO has been preparing to develop its own batteries for some time. In June of this year, NIO CEO Li Bin stated in the first-quarter earnings call that NIO had assembled a battery-related team of over 400 people and would launch an 800V high-voltage platform battery pack in 2024. Sources revealed that the so-called 800V high-voltage battery pack is actually the 4680 battery, which is planned to be used in electric vehicles built on the third-generation NT3 platform.
The legendary 4680 battery is actually a cylindrical battery with a diameter of 46mm and a height of 80mm. It is currently mainly used by Tesla, and some Model Ys produced at the Texas factory also use this battery technology. Compared to the 2170 battery, the 4680 has a 5-fold increase in cell capacity, a 6-fold increase in charging power, and completely surpasses the 2170 in terms of output power and driving range. Moreover, the cost per kilowatt-hour is reduced by about 14%.
On the other hand, the 4680 battery uses a CTC packaging solution, which directly integrates the battery with the car chassis, eliminating the need for various battery casings and other materials. This not only improves the energy density of the car's power battery but also reduces weight.
As the saying goes, every advantage has its disadvantages. The 4680 is not a perfect product. Because the battery is integrated into the car chassis, it cannot be directly removed in the event of a collision or when the battery needs to be replaced, greatly increasing the difficulty and cost. In addition, the development of lithium manganese iron phosphate is also quite difficult. Although the concept is good, it is still a long way from mass production.
Automakers' "wishful thinking" about developing their own batteries
Undoubtedly, batteries are the most important component of new energy vehicles, accounting for about 40% of a car's cost. Battery performance, such as driving range and battery brand, has become a crucial factor in consumers' car-buying decisions. Many automakers' "wishful thinking" is to develop, produce, and supply their own batteries to reduce costs, and even eventually launch an independent brand to make a profit.
In fact, many well-known companies have already tried this "wishful thinking," only to hit a wall and turn back. Nissan, a pioneer in electric vehicles, sold its battery company AESC to Envision Group in 2018. Nissan's stated reason was that it wanted to purchase low-cost, high-performance lithium batteries from third parties. The implication is that AESC had no way to reduce costs.
Is it because Nissan cars aren't selling well? Actually, no. In 2015, Nissan Leaf's global sales exceeded 200,000 units, while Tesla Model S sales were less than 100,000 units at the time. Looking at domestic car sales, the market for new energy private cars didn't truly open up until the second half of 2020. As of January 2022, NIO had delivered 177,000 vehicles, and GAC Aion delivered 120,000 vehicles in 2021.
