Electronics

Recently, French President Makron announced that China's Xiamen Tungsten New Energy Materials Co., Ltd. and France's Eleanor Company planned to invest 1.5 billion euros (about 11.4 billion yuan) to set up a joint venture in the field of batteries in Dunkirk, a port city in northern France.

Xiamen Tungsten New Energy's visit to France to set up a factory is undoubtedly another milestone for Chinese new energy battery companies to "go global". The reporter learned in the interview that, driven by multiple factors such as the surge in demand for lithium batteries in the European and American markets, and the enhanced competitiveness of Chinese lithium battery enterprises, China's "going global" lithium batteries are showing a vigorous development trend. More and more enterprises are turning their development attention to the international trade market, actively laying out supply chains, and accelerating the process of overseas localized production.

Accelerate the process of overseas localization

What is the origin of this Xiamen enterprise that was officially announced and cooperated with Marklong?

According to data, Xiamen Xiamen Tungsten New Energy Materials Co., Ltd. is a controlling listed subsidiary of Xiamen Tungsten Industry Co., Ltd. and also a national high-tech enterprise.

At the just concluded 7th China Brand Day event, Xiamen Tungsten New Energy showcased a series of flagship products. The relevant person in charge of the company introduced to the International Business Daily reporter that its lithium cobalt oxide research and development team has developed the world's first 4.48V and 4.5V high-voltage lithium cobalt oxide product, with a market share of over 40%. At the same time, the company has mastered the core technology for the production of lithium cobalt oxide high-voltage products, and the products have entered the international trade frontline mobile phone terminal supply chain.

According to reports, during his visit to China in April this year, Mark Long met with Jiang Long, the director and general manager of Xiamen Tungsten New Energy, in Guangzhou. After announcing the cooperation between Xiamen Tungsten New Energy and Ouano, Makron stated that "the project cooperation is expected to create 1700 jobs" and "will enable us to ensure an upstream position in the lithium battery production value chain".

Not only Xiamen Tungsten New Energy, but since the beginning of this year, Chinese lithium battery companies have taken frequent actions to "go overseas", including Ningde Times, Yiwei Lithium Energy, Putai Lai, Xinwangda, Longpan Technology, and other companies that have announced the establishment of factories and subsidiaries in Europe and Southeast Asia to expand production capacity and layout the supply chain.

In January of this year, Ningde Times officially opened its battery manufacturing factory in Arnstart, Thuringen, Germany, which was Ningde Times' first battery factory located in Europe. In early April, the factory officially obtained a production license for battery cells. According to the latest news, the main body of Ningde Times' battery factory in Debrecen, Hungary will officially start construction this summer, and will be put into trial operation next year. It will be put into operation in 2025.

In order to seize the European lithium battery market, Putai recently announced that the company plans to invest no more than 15.7 billion Swedish kronor (approximately 10.6 billion yuan) in Sweden to establish Zichen Technology (Sweden) Co., Ltd. and build an integrated production and research and development base project for negative electrode materials, with an annual production capacity of 100000 tons.

Setting up factories overseas and laying out overseas supply chains will become an indispensable part of our 'going global' strategy, "said Pu Tailai. The Swedish factory will further improve the company's overseas production capacity layout and effectively meet downstream customer supply chain management and order demands.

Yu Qingjiao, Secretary General of the Zhongguancun New Battery Technology Innovation Alliance and Chairman of the Battery Hundred Association, told the International Business Daily that the power battery supply in the European market is mainly occupied by Korean battery companies, and Chinese companies are expected to take the initiative to increase their participation and influence in the international market. Localized production is closer to customers and seize the opportunity of rapid industrial development, creating a complete supply chain and forming a significant competitive advantage

There are both prospects and storms when going to sea

As the international trade markets represented by Europe and North America become new incremental markets for power batteries, opportunities and challenges coexist for Chinese power battery industry chain enterprises.

Starting from October 1st of this year, the EU will implement a carbon tariff policy and reduce free quotas for EU enterprises from 2026, which means that the EU market access threshold will be further raised. In addition, the EU's "New Battery Law" will rate the carbon footprint of power battery companies and set a certain threshold in 2027. If it exceeds this value, it will not be able to enter the local market for sales.

In August 2022, the United States enacted the Inflation Reduction Act, which not only provides high subsidies for new energy vehicles, but also requires power batteries to be produced locally in the United States, invisibly adding difficulties and variables for Chinese power battery companies to "go global".

The stability of the trade environment in the international trade market is the most noteworthy issue, "said Cui Dongshu, Secretary General of the National Passenger Car Market Information Federation. This requires lithium battery companies to weigh uncertainty and business opportunities, and always pay attention to whether the quality of their products meets the different needs of the international trade market.

According to Puritanism, Chinese power battery companies should not go out in a trendy way or simply "run horses and encircle the land". Instead, they should do a good job in supporting and reserving the power battery industry chain, integrate local resources, and achieve cultural and team integration. It is necessary to enhance the healthy development and collaborative innovation capabilities of the industrial chain, and use technology and product strength to win market share, which is also the key to winning international discourse power