Automobile battery production will face surplus

Automobile battery production will face surplus Roland Berger International Management Consulting Company released a research report on the automobile battery industry, pointing out that in the future, automobile battery manufacturers will face the risk of overproduction. 'Lithium-ion battery processors are highly sought after today, but it is expected that large-scale mergers will occur in the next 5 to 7 years.' This is Wolff, a partner of Roland Berger International Management Consulting Company and an alternative energy power system technology expert. Dr. Wolfgang Bernhart's basic views on this industry. Most experts believe that in the next 10 years, due to the substantial drop in battery costs, the share of electrified power systems in the major automotive markets will increase significantly. According to a bold prediction, by 2015, there will be close to 1.2 million plug-in hybrid electric vehicles (pHEV) and electric vehicles (EV) in important regions. At present, hybrid electric vehicles (HEV), plug-in hybrid electric vehicles and electric vehicles demand 820,000 “EVequivalents” for lithium-ion batteries, and the installed capacity in 2015 will exceed 2.6 million electric vehicles Equal amount. The demand for lithium-ion batteries will continue to rise before 2020, but the equivalent of 3 million electric vehicles will not be reached until 2018 at the earliest. In view of these circumstances, the planned investment will lead to severe overproduction in 2014-2017, which is particularly prominent in the United States and Japan. According to the announced investment projects, the output in 2015 has reached 200% of the estimated demand in 2016. In addition, all investment projects have not yet been announced, and there are still some investment projects that have not yet been announced by important manufacturers. This will further aggravate overproduction, and state subsidies will stimulate more investment. Most of the investment in the development of our country is concentrated in the field of battery manufacturing, rather than investment in core material research and development. And correspondingly, battery suppliers that can truly fully meet the technical needs of vehicle manufacturers, have qualified consistency, large-scale output, and lower cost, are actually very scarce. The report pointed out: “The low-end manufacturing output continues to be repeated, the core Ru0026D and manufacturing technology is scarce, imitation and replication continue to emerge. This is the current status of the battery industry in these countries.” In addition, this industry still needs to invest a lot of Ru0026D and capital, which will reduce rapidly. Cost: 50 million to 100 million euros for new battery chemistry, 350 million euros for 100,000 units. 'Therefore, in the next 5 to 7 years, only 6 to 8 global battery processors will survive.' Benhardt said, 'The critical value of revenue in 2015 is about 600 million euros.' Therefore, battery suppliers need to formulate a clear strategy to quickly gain market share in order to survive. Before that, there is a key point that investors should be aware of the huge investment risks. As Benhart said: 'There are more and more unfavorable factors, but if operated properly, the future electrified power system will still be lucrative.'