On 23 Aug., 2016, EVE released its financial report that the first half of 2016 witnessed a generally better performance. As the prospect of relevant national subsidy policies is becoming gradually clear and bright, the power battery business in the future will be presented with a significant development opportunity.
Hefei Guoxuan, a subsidiary of Guoxuan High-tech, increased its investment in Li-ion battery business to further complete its domestic Li-ion battery industry layout.
NBSS realized USD278.98 million revenue in its Li-ion battery material business in H1 2016, with a year-on-year increase of 21.57%, and corresponding net profit amounted to USD20.67 million, with a year-on-year increase of 193.76%.
On 16 Aug., 2016, Kanhoo released its financial report. H1 2016 witnessed substantial increase in financial performance. However, given that its rare-earth luminescent material business is still going down, the company still faces risk of being delisted.
Despite fine financial performances in H1 2016, Chinese cathode materials manufacturers are facing difficulties in payment collection and subsequently great capital pressure.
With an increasing number of AEV manufacturers and AEVs, the Regulations on Administration of Alternative Energy Vehicle Manufacturers and Alternative Energy Vehicles which has been implemented for 7 years,steps into accelerated revising process. In CCM's opinion, that the government is regulating the competition of AEV industry by total quantity control will serve as a focus for present access policy.
In Aug. 2016, Leshi declared the official initiation of super car factory project. It is expected that it will obtain EV production license soon, since it is now under the regular application process.
At the end of July, 2016, Tesla announced the latest progress of its Gigafactory. The Gigafactory, working at full capacity, will satisfy the battery demand from 500,000 BEVs, and will also act as a vital step for Tesla to reduce cost and cut prolonged large spend.
Three development trends in Li-ion battery business
On 5 Aug., 2016, the Ministry of Industry and Information Technology of the People's Republic of China (MIIT) issued the Light Industry Development Plan (2016-2020) (Plan) to implement the 13th Five-Year Plan for National Economic and Social Development and the Made in China 2025.
As the Plan puts it, 3 major trends are noted for Li-ion battery business.
1. High-performance Li-ion battery materials
Cathode materials, anode materials, electrolyte, and separator are the 4 key materials of Li-ion battery, Their performance improvement is of great significance to the energy density, specific capacity and safety of Li-ion battery.
Specifically, the premium-marketed cathode materials segment, still lagging behind the international level, and electrolyte technology, in wait of improvement, are the dominant bottlenecks to domestic Li-ion battery material industry.
- Cathode materials (40% of the total costs for Li-ion battery): In the context that the requirements on the driving range of alternative energy vehicle (AEV) are increasing, cathode materials, which exert decisive influence on the energy density of Li-ion battery, is becoming nickelic-oriented, such as the development of lithium nickel cobalt aluminate (NCA).
However, domestic NCA business is still at a starting stage, mainly focusing on laboratory scale experimentation and pilot scale experimentation – projects at the former stage outnumber the latter.
- Electrolyte: The competitive edge of this material hinges on its additives-centered formula. In addition, manufacturers are expected to collaborate with customers to develop products based on their demands, and to find access to supplying to top Li-ion battery manufacturers at home and abroad by means of strong technology innovation and excellent customer service.
2. Production line automation
Regarding the manufacturing, domestic Li-ion battery industry has been for a long period faced with low level of automation, low productivity, low yield percentage of quality products, and low information exchange efficiency, which have blocked the development of premium-marketed Li-ion battery.
In order to advance the transition from "a big country for light industry" to "a powerful country for light industry" and accelerate the realization of intelligent manufacturing by 2025, the MIIT mentioned in the Plan that it is a must to develop equipment for manufacturing wide-range and high-speed battery pole piece, equipment for battery system testing, and equipment for waste battery sorting, dismantling and regenerating, and accelerate the domestication of automated production lines involving button cell of high efficiency and high precision.
3. E-bike promotion
As the AEV industry is in full swing, e-bike market is quietly emerging. Insiders pointed out that e-bike business may return to high speed growth.
Since the bicycle industry develops towards light weight, diversification, fashion and intelligence, e-bike may become a mainstream. In particular, e-bike based on Li-ion battery and intelligent e-bike are stressed in the Plan.
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