Auto & Transportation

Taking root in Ningde, looking at the global Ningde era, this time shifted the focus to Shanghai, and it is far more than just building a battery factory as previously rumored.

On August 18th, CATL and the Shanghai Municipal Government signed a strategic cooperation framework agreement, which will establish the Global Innovation Center and International Functional Headquarters, Future Energy Research Institute, high-end manufacturing base and other related projects in Shanghai.

Zeng Yuqun, chairman of CATL, said: “Shanghai has a concentration of resource elements, various talents, and a broad market prospect. CATL will fully rely on Shanghai’s advantages to increase technological innovation and business expansion, and promote the rapid development of new energy vehicles.”

CATL and Shanghai Municipal Government signed a strategic cooperation framework agreement; source: Shanghai release

In the first half of this year, Shangha0i0’0s0 new energy vehicle output was 228,000, a year-on-year increase of 220%, accounting for more than one-sixth of the country’s total output; the cumulative sales volume reached 540,000, ranking first among cities in the world. Some analysts pointed out that in this powerful alliance, CATL will give full play to its advantages as a leading enterprise in the new energy industry chain, and jointly promote technology research and development in frontier fields with the Shanghai Municipal Government, and build a company based in Shanghai, facing the Yangtze River Delta, radiating across the country, and leading the world. New energy technology innovation source and industrial ecological highland.

Technology-driven manufacturing, innovation center and research institute settled in Minhang

Specifically, CATL’s plan to build a global innovation center in Shanghai this time will focus on innovation systems such as “advanced material innovation”, “structural design innovation”, “extreme manufacturing innovation” and “business model innovation” to carry out business layout, and Undertake related international business functions,

The CATL has always regarded innovation as its core competitiveness. From 2015 to 2020, CATL has invested more than 11 billion yuan in R&D. As of the end of 2020, it has 5,592 R&D personnel and nearly 7,000 patents. It has led and participated in the formulation or revision of more than 50 domestic and foreign standards. In addition to the world's leading technology in lithium-ion batteries and sodium-ion batteries, it also has a wide range of solid-state batteries, No precious metal batteries and other cutting-edge battery technology.

Ningde Times Future Energy Research Institute will cooperate with Shanghai Jiao Tong University, with the goal of building a national laboratory, and strive to build a cutting-edge platform that combines "research innovation" and "talent training", and tackle a batch of forward-looking technologies in the field of new energy for the future .

The establishment of CATL in Shanghai is far more than just building a factory

It should be pointed out that just after the signing with the Shanghai Municipal People’s Government, CATL signed a four-party strategic cooperation framework agreement with Shanghai Economic and Information Technology Commission, Shanghai Minhang District People’s Government, and Shanghai Jiaotong University that afternoon. Minhang plans to build the School of Future Technology of Shanghai Jiaotong University and the Ningde Times Future Energy Research Institute to build a global future energy innovation center in the long term.

According to the plan, Ningde Times Innovation Center will use the plot of the Future Energy Research Institute as an early scientific research site. In other words, the two major projects of CATL Global Innovation Center and Future Energy Research Institute will be implemented in Minhang. Regarding this layout, relevant industry insiders said that CATL does not want to just position itself as a battery company. Its goal is to become a technology company to lead modern manufacturing.

On the day of the signing of the agreement, the company's data showed that Ningde Times Future Energy (Shanghai) Research Institute Co., Ltd. was established, and Ningde Times New Energy Technology Co., Ltd. is wholly-owned by Ningde Times New Energy Technology Co., Ltd. The legal representative is Qu Tao with a registered capital of RMB 200 million. The business scope includes scientific research, technical services, technical development, technical consulting, technical exchanges, technology transfer, technology promotion, and emerging energy technologies in the field of new energy technology and new materials. R&D, software development, etc.

Supplied to Tesla, the seventh largest production base settled in Lingang

If CATL chooses to locate the global innovation center and future energy research in Minhang, it values the universities and human resources in the area, then the location of the high-end manufacturing base will undoubtedly give priority to the location of its major customer, the Tesla factory. port.

According to this agreement, CATL will build a green and efficient smart factory in Lingang New Area, relying on its latest manufacturing technology and news from Rongyi Information Network (www.ironge.com.cn). In fact, as early as early June this year, a relevant person familiar with the matter disclosed that CATL is negotiating with the Shanghai government to build a plant and plans to build a new battery plant in Shanghai with an annual output of 80GWh cells. However, it is not clear when a final agreement will be reached, or When will the factory be built and put into production? At that time, Ningde Times stated that it would not comment on the news. Now it seems that non-evaluation means non-denial, and non-denial means acquiescence.

Some analysts pointed out that the establishment of the Ningde era battery factory in Lingang will benefit the Tesla battery supply chain in terms of logistics. The latter is reducing the price of Chinese-made electric vehicles through a high degree of localization. In February 2020, CATL signed an agreement with Tesla to supply lithium-ion power battery products to Tesla from July 2020 to June 2022. In June of this year, the two parties signed a contract again, and CATL will continue to supply Tesla from January 2022 to December 2025.

The establishment of CATL in Shanghai is far more than just building a factory

Yuan Guohua, deputy secretary of the Party Working Committee of the Lingang New Area of the Shanghai Pilot Free Trade Zone, said recently: "By the end of this year, the localization rate of Tesla Shanghai Super Factory will reach about 90%. It is expected that the annual output of the factory will reach 45 percent this year. Ten thousand vehicles.” Based on this development trend, the domestic Tesla may have room and possibility for further price cuts in the future.

In addition, the expansion of CATL may also intensify the competitive pressure of other Tesla battery suppliers such as Panasonic and LG Energy Solutions under LG Chem. According to statistics from SNE Research, the power battery usage of CATL ranked first in the world for four consecutive years. From January to June this year, the global total installed capacity of electric vehicle batteries was 114.1GWh, a year-on-year increase of 153.7%. CATL continued to rank first. The installed capacity of power batteries reached 34.1GWh, an increase of 234.2% year-on-year, and the global market share was 29.9%. In China, CATL accounts for half of the country. According to the latest data from China Automotive Power Battery Industry Innovation Alliance, CATL installed 5.66GWh in July, with a domestic share of 50.1%.

However, the Ningde era, which has a stable market share, has been accelerating its capacity expansion in recent years. According to incomplete statistics, since February this year, CATL has invested 39.5 billion yuan to build or expand production bases in Liyang, Jiangsu, Zhaoqing, Guangdong, Yibin, Sichuan, and Puxia, Ningde, Fujian. Up to now, CATL has deployed 6 major production bases around the world, namely the domestic Fujian Ningde, Jiangsu Liyang, Sichuan Yibin, Qinghai Xining, Guangdong Zhaoqing base and foreign German factories, with a total planned production capacity of more than 500GWh. In addition to the new factory that will be established in Shanghai Lingang this time, CATL will increase its global production base to seven.

In terms of joint venture capacity, CATL has established joint ventures with SAIC, FAW, Dongfeng Motor, Guangzhou Automobile Group, Geely Automobile and other auto companies. The total production capacity is planned to be about 108Gwh.

Generally speaking, the new production capacity will gradually land in 2-3 years. CITIC Securities predicts that by the end of 2021, CATL's unique assets will reach about 200 GWh; in 2022, it will reach about 320 GWh; in 2025, it is expected to exceed 600 GWh, accounting for a share of the global market. 30%.