my country's lithium-ion battery industry investment blowout needs to be alert to the risk of technology replacement

my country's investment in lithium-ion batteries is showing a blowout trend. According to incomplete statistics, in the first half of this year alone, 54 upstream, midstream and downstream listed companies for power lithium batteries have announced investment expansion plans, with a total investment of nearly 116 billion yuan. So, what is the current competitive landscape of my country's power lithium battery? Is there a risk of overproduction? What is the reliable technology path? On July 4, Yiwei Lithium Energy, a listed lithium-ion battery company, announced that it had signed a power lithium battery project with an investment of 2.518 billion yuan for Zhangda Power’s lithium-ion battery production scale. Prior to this June 21, Smart Energy announced that Far East Foster, a wholly-owned subsidiary of the company, will increase its capital by RMB 150 million in cash. On June 14, Narada Power announced that the company intends to raise 1.78 billion yuan from its own funds to invest in power lithium battery technology transformation projects. Throughout June, a total of 9 listed companies continued to increase power lithium-ion batteries. Investing in lithium-ion batteries, listed companies are in a good position to go all out. According to incomplete statistics, in the first half of the year, the total amount of related investment was close to 116 billion yuan. Decomposition believes that the reason why lithium-ion batteries are so popular with capital is related to the rapid rise of new energy vehicles in my country. Dong Yang, Executive Vice President of the my country Association of Automobile Manufacturers: Dong Yang: Driven by a series of national policies, new energy vehicles are on the rise. By 2015, my country has become the forefront of the new energy vehicle market, and by May 2016, the number of new energy vehicles in my country has exceeded 500,000. It has also been broken down and pointed out that in June, the Ministry of Industry and Information Technology announced the fourth batch of company catalogs in the 'Regulations for the Automotive Power Battery Industry'. Due to subsidies and other factors, battery companies entering the catalog are bound to be more popular with new energy car companies, which stimulates battery companies to work hard. Great, strive to enter the catalog. Listed companies have invested heavily in lithium-ion batteries. If small and medium-sized companies are triggered to follow suit, will the industry have concerns about overproduction? This should start from the structure of my country's power lithium battery industry. Gan Yong, former vice president of the Chinese Academy of Engineering and head of the expert group of the National Manufacturing Innovation Center, said that small but scattered is an important feature of my country's power lithium battery industry. Qian Yong: my country's battery industry has a relatively high degree of dispersion. There are about 10 lithium power lithium battery factories with a processing capacity of 1 million kilowatts. Reporter: Are there many under this ability? Gan Yong: Yes, a lot, there are four or five hundred companies. It is understood that my country's largest lithium-ion battery company currently has a market share of only about 14%. In comparison, battery processing companies in South Korea and Japan are generally giants, and there are only about three, with distinct advantages in Ru0026D capabilities and market share. In this sense, domestic listed companies increase investment and become bigger and stronger, which is conducive to the further integration of the industry. Considering the huge upside of new energy vehicles, it seems that overproduction is not worth worrying too much. Nevertheless, there is a potential problem with regard to the investment in lithium-ion batteries, that is, the upgrading of technology. According to the analysis of Xiong Baiqing, chairman of the Guolian Automobile Power Lithium Battery Research Institute, there is a strange phenomenon in the power lithium battery category. Xiong Baiqing: In the category of power lithium batteries, a new generation of new products may be a reshuffle of the previous generation. Whether you buy a piece of clothing or a mobile phone, the better things are more expensive, for example, the higher the performance of the mobile phone, the more expensive it is. But the power lithium battery is just the opposite. The higher its energy density, the higher the performance, and the cheaper the battery. At present, the most mature technology for power lithium batteries is of course lithium-ion batteries, but technologies such as graphene batteries and hydrogen fuel power batteries are also accelerating research and development. Once these technologies have broken through, will the betting on lithium-ion batteries make people regret it? Some experts believe that this possibility cannot be ruled out. But Xiong Baiqing pointed out that the replacement of new technologies is gradual, and within a certain period of time, lithium-ion batteries are still the mainstream. Xiong Baiqing: According to the current technological development level, a basic judgment in the industry is that it is believed that it will rise after 2030, and the mainstream in the next 10 years may still be lithium-ion batteries.