48V mild hybrid market: a new blue ocean for the lithium battery industry?

　　In fact, the 48V mild hybrid system is not new. As early as 2011, Mercedes-Benz, BMW, Volkswagen, Audi and Porsche jointly launched the 48V system. They also released the corresponding 48V system specification LV148. Let's learn about the relevant content with the power management editor.

　　As a type of automotive hybrid power, the 48V mild hybrid system is different from the high-voltage hybrid system and 12V mild hybrid system used by Toyota, Ford, GM and other automakers. The 48V mild hybrid system has extremely high market cost-effectiveness in terms of cost control and energy-saving effects, and has become a favored assembly option for many automakers.

 48V mild hybrid market: a new blue ocean for the lithium battery industry?

　　According to Battery China, many domestic lithium battery companies have reserves in 48V systems. In recent years, many companies have begun to shift their strategic focus to the production and research and development of 48V systems. At a time when the competition in the power battery market is fierce and the profit margin is low, is the 48V mild hybrid market a new blue ocean for the lithium battery industry?

　　Li Yong, general manager of Fengfan Co., Ltd., said in an interview with Battery China that it will take a long transition period to completely transform the power system of automobiles from traditional fuel vehicles to start-stop systems, hybrid vehicles, plug-in hybrid vehicles, and pure electric vehicles. During this period, several technologies coexist. Fengfan's market research shows that the next focus of industrialization should be the 48V system.

　　Industry insiders said that the penetration rate of 48V system is very high in Europe, where emission standards are strict. As the Chinese government's requirements for automobile energy consumption and emissions become increasingly stringent, domestic automakers want to meet the technical requirements of "the average fuel consumption of new cars per 100 kilometers in 2020 shall not exceed 5L" and the "double points" management method. A large number of automakers will choose the hybrid technology route, and the 48V system will have a broader market space.

　　Wang Dongliang , deputy general manager of Chengfei Integration and general manager of AVIC Lithium Battery (Luoyang) Co., Ltd., expressed his confidence in the domestic 48V system market in an interview with Battery China. He believes that according to IHS data, 54% of the world's models will be equipped with 48V systems by 2025, and the installed capacity of 48V mild hybrid systems will reach 11 million vehicles in 2025 alone. Although a 48V system has a capacity of only 600-1000Wh, the huge installed capacity will provide a broad supply market for lithium battery companies. It is worth noting that the added value of the 48V system is very high, and it has a higher market profit margin than the power battery market.

　　On the other hand, under the pressure of domestic policies, the domestic 48V system market situation has changed. Li Yong, general manager of Fengfan Co., Ltd., said that after the promulgation of the "double points" management method, automakers have a strong demand for hybrid systems including 48V systems in order to meet the relevant regulations on fuel vehicle points. In order to meet market demand, Fengfan is actively making adjustments to related links.

　　Battery China believes that fuel vehicles still account for a large proportion of the domestic automobile market. Compared with pure electric and high-voltage hybrid, 48V mild hybrid system is very attractive to automakers. Foreign automakers' 48V system technology is relatively mature, and has shown obvious market competitive advantages in some mid-to-high-end models. It is not ruled out that domestic automakers will copy the technical route of foreign automakers' 48V system in the early stage of the "double points" management method to survive the transition period from fuel power to pure electric.

　　Xiao Yazhou, deputy general manager and chief engineer of AVIC Lithium Battery, told Battery China Network that the technical requirements of the 48V battery system for the battery cell are higher than those of the EV power battery, which is mainly reflected in the strict requirements of the 48V system on the power performance, low temperature performance, service life, energy density and cost control of the battery cell. Battery China Network believes that the requirements of the 48V battery system for the battery cell have caused certain market differences, and the positioning layout of enterprises is conducive to enterprises to gain market advantages in advance and seize market opportunities. For domestic lithium battery companies, it helps them find new points of strength in the fierce market competition.

　　On the other hand, with the country's full opening up in the automotive industry and other aspects, the influx of foreign capital will also provide a broader market space for the domestic 48V mild hybrid system. A wave of joint ventures between foreign and domestic automakers has emerged, and this wave will also bring about technical exchanges between companies. As the current technical focus, the 48V mild hybrid system will become the focus of corporate attention. We can see some clues from some actions of Continental, a world-renowned automotive parts supplier.

　　Recently, Chengfei Integration and Continental signed a strategic cooperation agreement to establish a joint venture, which will mainly engage in the research and development and production of 48V battery systems. Dr. Degenhart, CEO of Continental, said, "Entering the 48V battery system market is an important strategic step for Continental, and our partner, AVIC Lithium Battery, a subsidiary of Chengfei Integration, can provide ideal conditions for our joint venture. Cooperation with Chengfei Integration will enable us to enter the extremely important Chinese market, and hopefully participate in international competition and become a global supplier of power supplies."

　　According to Continental's financial report, Continental's global sales reached 44 billion euros in 2017, while sales of its automotive business were approximately 40 billion euros. The joint venture established by Chengfei Integration and Continental is expected to be officially operational in mid-2018, with target markets including Europe, North America, China and Asia. Through its cooperation with Continental on the 48V mild hybrid system, Chengfei Integration will help Chengfei Integration to develop the global power battery market, which is of great significance to the development of Chengfei Integration. Considering that Bosch announced the abandonment of the company's battery cell production plan in the previous stage, Bosch will also tend to purchase hybrid systems in the future. The indifference of automotive parts suppliers to battery cell production will also provide a certain market space for domestic lithium battery companies that have been well prepared.

　　Compared with the current situation of high investment and low returns in the domestic power battery industry under subsidies for new energy vehicles, the higher added value of the 48V mild hybrid system may become a new blue ocean market for lithium battery companies to make profits.

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