Tesla is about to make China‘s power battery market or welcome the "big change"

Time:2019-10-29
Tesla‘s localization seems to have begun to be calculated on a daily basis. Last month, foreign media exposed the Tesla Shanghai Lingang No. 3 super factory (Gigafactory 3) will be fully operational on October 14. October 7, foreign media has exposed a video, a Model 3 electric car appears on a new test track near Tesla factory in Shanghai. The video further confirms that Tesla‘s Shanghai plant is making final preparations for the upcoming production.
Tesla‘s domestically produced, directly threatened not only the new domestic power-building forces such as Weilai, Xiaopeng, Weimar, and Hezhong, but also the new energy models of domestic traditional car companies may face challenges. In addition, it is worth noting that with the domestic production of Tesla, the domestic power battery market will also be rewritten.
Tesla CEO Elon Musk had high hopes for the Shanghai plant and pushed the Shanghai plant to full production as soon as possible. He also hopes that by the end of 2019, the plant will produce 3,000 Model 3s per week.
According to Battery China.com, the first models of the Tesla Shanghai plant are upgraded versions of the Model 3 standard. According to the data, the battery pack capacity of this model is about 60kWh. In other words, if the Tesla Shanghai plant produces 3,000 units at the end of the year, the installed capacity of the power battery will exceed 720MWh.
What is the concept of 720MWh? According to the data of the Power Battery Application Branch, in July and August of this year, the installed capacity of BYD‘s power battery was 582.72 MWh and 335.04 MWh respectively, and BYD has long occupied the second place in the installed capacity of new energy vehicles in China.
Therefore, if Tesla can get 3,000 units per week at the end of the year, the first echelon of power battery installed capacity in the domestic market is bound to expand. For this volume, almost all global power battery companies are hoping to get Tesla‘s favor.
"Lucky" may not be a Chinese battery company for the time being.
Tesla made domestically, and domestic battery companies have not received “beauty” for the time being. According to Bloomberg News, Tesla has reached an agreement with LG Chem, and the Tesla Shanghai plant will purchase power batteries from LG Chem. According to sources, LG Chem will supply Tesla with a cylindrical 21700 battery, which is the battery model used in the Tesla Model 3.
If the news is true, then the installed capacity of LG Chem‘s power battery in the Chinese market will skyrocket and may quickly reach the first echelon in the Chinese market by the end of this year. According to the data of the Power Battery Application Branch, from January to August this year, LG Chem‘s power battery installed capacity in the Chinese market was only 5.61MWh, ranking 49th.
3,000 vehicles per week is just the size of the capacity that Musk hopes to achieve by the end of this year. For the Shanghai plant, Musk has a greater ambition: According to the plan, it is estimated that after 2-3 years, the total annual production capacity of the Shanghai plant will reach 500,000. Among them, the Tesla Shanghai plant project has a capacity of 250,000 units. It can be speculated that the annual output of electric vehicles in the Tesla Shanghai plant in 2020 will be much higher than 3,000 units per week. Undoubtedly, it will also drive a substantial increase in the installed capacity of power batteries. By then, LG Chem‘s power battery installed capacity in the Chinese market may be higher.
LG Chemical‘s supply of Tesla‘s Shanghai factory has robbed Panasonic‘s "cake", but it has also had a potential impact on Chinese power battery companies. On the one hand, it caused domestic enterprises to miss the big cake of Tesla; on the other hand, the commissioning of the Tesla Shanghai plant will have an impact on the domestic electric vehicle market, which may affect the sales of self-owned brand electric vehicles, and then the upstream power battery. Enterprises have a certain impact.
Of course, for the ambitious LG Chem, the supply of the Tesla Shanghai plant is only the first step in its massive opening of the Chinese market.
In July 2018, the LG Chemical Power Battery Project with a total investment of US$2 billion was settled in China. The total planned capacity of the project is 32GWh. It is expected to start mass production in October 2019 and achieve full production in 2023. In January 2019, LG Chem invested an additional 7.3 billion yuan to expand its battery production line in Nanjing, China, to cope with the surge in global demand for cylindrical batteries.
In June of this year, LG Chem established a joint venture with China‘s own brand Geely Automobile to jointly develop and produce the power battery for electric vehicles. According to Battery China.com, the joint venture between LG Chem and Geely will build a 10GWh electric vehicle battery factory by the end of 2021. Its products will be supplied to Geely‘s electric vehicles from 2022.
From the series of operations of LG Chem in the past two years, its expansion to the Chinese market, especially the large customers in the Chinese market, is very rapid. It is no accident to enter the first echelon of China‘s new energy vehicle power battery market.
After suffering from the loss of Panasonic‘s battery capacity, Tesla plans to find multiple battery suppliers to supply its Shanghai plant, and LG Chem is not its exclusive supplier. According to sources, the agreement between Tesla and LG Chem is not an exclusive supply agreement. Tesla is currently in contact with some Chinese battery companies. If domestic companies can take a slice of the Tesla Shanghai factory, it will undoubtedly add strong momentum to the development of the company. A very obvious example is that before the domestically-known power battery company, Linked Tianyi, successfully entered the Xiaopeng automobile supply chain, it ranked 13th in the domestic power battery market with the installed capacity of 324.73MWh from January to August this year. Bit. If you can "catch up" the big tree of Tesla, the development is even more imaginable.