In December last year, Geely Automobiles subsidiary, Zhejiang Gerun, reached a cooperation agreement with Ningde Times, a battery supplier in China, and the two sides intend to jointly invest in the establishment of a joint venture company. According to the enterprise survey, the joint venture company named Time Geely Power Battery Co., Ltd. was established on April 3 this year. Ningde Times holds 51% and Zhejiang Geely holds 49%.
After joining hands with Ningde Age and LG Chemistry successively, Geely can ensure the effective supply of new energy power batteries, which is not restricted by battery companies, but also more conducive to the upgrading of its technical level.
The return of Japanese and Korean batteries will have a huge impact on Ningde Age and BYD, the leading power battery companies in China. At present, the market share of these two battery suppliers can be close to 80%. At the same time, the market space of other smaller Chinese battery companies will be further squeezed.
At home, owing to the advantages of technology and scale in power batteries, Ningde era has become the darling of all automobile companies, but the sales of new energy vehicles in China are growing rapidly, and the supply of new energy vehicles in Ningde era is in short supply; while BYDs new energy vehicles are growing rapidly, despite the existing export plans, the existing capacity can only be prioritized to ensure internal digestion, which limits the export business. It has not been expanded before. At present, both Ningde Times and BYD have built new battery factories in China to expand their capacity.
Although Ningde Age has been holding hands with dozens of mainstream domestic and foreign automobile companies, it can be seen from LG Chemistry holding hands with Geely that as Samsung, SK, LG Chemistry, Panasonic and other Japanese and Korean power batteries return to the Chinese market, these Japanese and Korean battery companies will steal some orders from domestic battery companies in China.
From the perspective of the whole industry, with the increasing investment of domestic and foreign enterprises in the field of batteries in China, the competition in the battery industry has intensified.