Tesla New Cells Put into Operation, and Far East Smarter Energy Co., Ltd. Reelected the Champion of 18650 Lithium-ion Battery
Recently, the National Development and Reform Commission and Ministry of Industry and Information Technology of PRC jointly released the opinions on the improvement of the management of automobile investment project (hereinafter referred to as “the Opinions”). The Opinions proposed that while strictly controlling the capacity of traditional oil-fired automobile, supports should be offered to enterprises which are funded by social capital and with the relatively strong technical competence, so that they can enter into the manufacturing fields of new energy automobile and key component, guiding the enterprises of traditional oil-fired automobile to accelerate transformation to develop new energy automobile. In addition, the Legislative Affairs Office of the State Council of PRC released The Parallel Management Measures for the Corporate Average Fuel Consumption (CAFC) of Passenger Vehicles and New-Energy Vehicles Credits (Draft for Comment), confirming that the new energy car sales quota policy will come into implementation since 2018. From 2018 to 2020, the standard ratio of the new energy car sales quota of passenger vehicle enterprises is set as 8%, 10%, 12%. According to the analysis of industry insider, under the double stimulation of the policy and fundamentals, the new energy automobile sector is expected to usher in a vigorous development. Meanwhile, in the research report, China Investment Securities indicated that as for the industry chain of new energy automobile, in the context of elimination of policy uncertainty and gradual strengthening of production and marketing, the sector of upstream and downstream industry chain which possesses a sound supply and demand pattern and leads the technology trend is expected to harvest great benefits.
In accordance with the analysis of experts in the automobile industry, with the gradual clarity of policy, the production sale of pure electric passenger car will gain a substantial increase on a year-on-year basis. Owing to the advantages of ternary material lithium battery such as the high energy density, long cycle life and low cost, it better caters to the requirements of pure electric passenger car, so that the limited capacity of pure electric passenger car will effectively stimulate the demand growth of ternary material lithium battery. Far East Smarter Energy Co., Ltd. (hereinafter referred to as "Smarter Energy", stock code: 600869), the product and solution provider of the ternary material 18650 lithium-ion battery (Tesla model) ranks the first domestically and the third worldwide. With the first mover advantage in the market, Smarter Energy will take the preemptive opportunities in the market explosion of ternary material lithium battery. In 2017, Smarter Energy (stock code: 600869) set up the schedule to promote the project of energy storage lithium-ion battery with 6Gwh high performance and power of Smarter Energy Industrial Park and the R&D and industrialization project of manufacturing 3GWh energy storage lithium-ion battery with high energy density annually. Centering on the 21700 battery, Smarter Energy plans to expand the total capacity of new energy battery to 12Gwh, further consolidating and extending the dominant industrial status of Smarter Energy in the emerging sectors of strategic importance and power battery sector of new energy automobile. Now, with the present capacity of 3Gwh, Smarter Energy possesses the capability to manufacture 1.2 million ternary material 18650 lithium-ion batteries daily. So far, the energy density of a single cell of ternary material 18650 lithium-ion batteries has reached 218wh/kg. Through structure optimization and use of new material, the energy density of battery pack which applies the second-generation plan of Smarter Energy has reached over 120wh/kg. Being in the leading position at home, the battery pack has been manufactured in volume.
According to the national guiding goal of the energy density of lithium-ion battery, specific requirement is put forward that by 2020, the energy density of a single power battery should reach over 300Wh/kg, and that of the power battery system reach 260Wh/kg; by 2025, the energy density of the power battery system should reach 350Wh/kg. Take a certain 18650 lithium-ion battery as an example. With the energy density of the ternary material lithium-ion battery being 215Wh/kg, in order to achieve the goal of 2020, the increasing rate of energy density should be 39.5% which is relatively high. In the big picture, the country guides enterprises to improve the energy density through subsidy, while it is tough to reach the goal only by resorting to the advancement of material system. One of the developing mainstreams of the future market would definitely be the 21700 battery which is improved the energy density by the double stimulation of the improvement of material system and increase of the physical size. The lifting requirements of the energy density of power battery would certainly promote the revolution of the models of lithium-ion power batteries. The 21700 lithium-ion battery project of Smarter Energy (stock code: 600869) which mainly improves the performance and capacity of lithium-ion battery is consistent with the large scale developing trend and market demand of the lithium-ion battery in the future.
The business of Smarter Energy (stock code: 600869) covers the planning and design of energy project, product manufacturing, project implementation, operation, maintenance and monitoring, energy efficiency management and general contracting service, lasting for the full life circle of energy project construction and service and forming four major business units of intelligent power products, new energy automobile dynamical system and energy storage device, clean energy/new energy system and internet electrical & electronics platform. Smarter Energy actively set up the layout of smart energy system and ecological service system centering on “Internet plus”. In the future, benefited by the limited capacity of the lithium-ion battery market which is brought by the national policy support to the new energy automobile, Smarter Energy (stock code: 600869) will lead the energy storage industry through its strong R&D capability and advanced production technology to promote the rapid development of the industry of new energy automobile and speed up the realization of the strategic target of becoming an industrial power.