Entering the top 10 in global installed capacity for the first time, Farasis Energy is making efforts in the mid-to-high-end new energy market

In early February, South Korean market research organization SNE Research announced the global battery company installation data and rankings for 2022. Farasis Energy, which provides global battery adapters for the Mercedes-Benz EQ series, entered the top 10 for the first time, and with explosive growth, further consolidated its position as the world's leading soft-pack power battery company. Among the top ten battery companies in the world, four companies insist on the soft-pack battery route, namely LG, SK On, Samsung SDI, and Farasis Energy. All four battery companies have achieved great growth, among which Farasis Energy is particularly rapid.

Figure: According to SNE Research data, Farasis Energy's installed capacity entered the world's top ten for the first time

Entering the global top 10 for the first time, Farasis Energy has achieved explosive growth

According to SNE data, the global installed capacity of power batteries reached 517.9GWh in 2022, a year-on-year increase of 71.8%. The growth in global production and sales of new energy vehicles has also driven the general growth of power battery companies. As one of the fastest-growing companies in 2022, Farasis Energy's global installed capacity reached 7.4GWh in 2022, a year-on-year increase of 215.1%, far exceeding the industry's development speed.

Figure: According to data from the China Automotive Power Battery Industry Innovation Alliance, Farasis Energy's installed capacity ranked eighth in the industry in 2022

In the Chinese market, which accounts for 60% of the global new energy vehicle market, Farasis Energy also performed well. According to data from the China Automotive Power Battery Industry Innovation Alliance, Farasis Energy's domestic installed capacity reached 5.36GWh in 2022, a year-on-year increase of 218.7%, ranking eighth in the industry, and achieving a double increase in market share and ranking.

Analyzing Farasis Energy's rapid growth in 2022, it is first attributed to the substantial increase in the global adaptation and installation volume of the Mercedes-Benz EQ series. At present, Farasis Energy has provided power battery adaptation for many models such as EQS/EQA/EQB/EQE. In 2022, the global sales of Mercedes-Benz EQ series pure electric vehicles increased by 65.5%. In addition to Mercedes-Benz, Farasis Energy also provides high-performance batteries for Renault Mobilize Limo new energy vehicles, as well as new energy brands and start-up technology companies in categories such as Zero, Polaris, ARC, Volta, and Joby, high-end electric vehicles, electric yachts, and electric aircraft, making it the Chinese battery company with the most global customer order quantity and structure except CATL.

Figure: In addition to new energy vehicles, Farasis Energy also provides power batteries for global two-wheeled vehicles, electric yachts and electric aircraft customers

The rapid growth of Farasis Energy is secondly attributed to its efforts in the rapidly growing mid-range new energy market in China. As the fastest-growing segment of China's new energy vehicle market in 2022, Farasis Energy provides battery adaptation for the best-performing backbone companies and dark horse companies in this market, achieving a win-win situation for car companies and battery companies.

In addition, thanks to new technology routes such as semi-solid and solid-state, as well as innovations in stacking technology, Farasis Energy's long-term development of soft-pack power batteries remains extremely competitive in the global new energy market, and has also become an important reason for its leading installation volume in overseas and domestic markets.

Focusing on the mid-range market, Farasis Energy and China's new energy star companies achieve win-win results

As the penetration rate of new energy vehicles in China exceeds 30% in 2022, the structure of China's new energy vehicle market is also quietly changing. The most noticeable is the rapid rise of the mid-range market.

According to research by the China Association of Automobile Manufacturers, Autohome and Changjiang Securities, from January to October 2022, the overall penetration rate of new energy vehicles in China was 26.2%, of which the low-end market (below 80,000 yuan) reached 50.1%, and the high-end market (above 200,000 yuan) reached 28.2%, showing an obvious "dumbbell-shaped" structure. The mid-range market (80,000-200,000 yuan) was only 20.5%, reflecting huge room for growth.

Figure: Compared with the low-end and high-end markets, the new energy mid-end market has the characteristics of high growth rate and high potential

The huge space of the mid-range market has also driven it to become the fastest growing market segment in 2022. Data shows that from January to October 2022, the growth rate of the low-end market was 31.7%, and the growth rate of the high-end market was 41.3%, both lower than the overall industry growth rate of 69.9%. The mid-range market, with a growth rate of 133.9%, is becoming a new engine to drive the overall market growth.

This conclusion is also confirmed by the performance of the "star" companies in the current auto market. In 2022, in addition to BYD, the fastest growing companies in the new energy market are GAC, Geely and other companies whose main models are in the mid-range market. Taking GAC New Energy as an example, the sales of its new energy brand Aion in 2022 increased by 121% over the previous year, expanding from sales similar to those of the new forces "NIO, Xiaoli" in 2021 to an advantage of more than 100,000 vehicles ahead of them in 2022. Farasis Energy provides battery support for many models of GAC Aion, including Aion V, Aion S plus, Aion Y, etc.

A similar win-win situation also happened to Geely. In 2022, Farasis Energy will provide battery support for Geely's new battery-swap travel brand, Ruilan Automobile. As a new brand established less than a year ago, Ruilan Automobile achieved sales of 56,000 vehicles that year and has been successfully exported overseas. It has fully exerted its strength in the battery swap market with the "Rui Lan speed" to form Geely's system strength and competitiveness in the battery swap track. It is reported that the cooperation between Farasis Energy and Geely Auto may not be limited to Ruilan Automobile. The two parties have established a joint venture to jointly produce batteries in Jiangxi, Chongqing and other places. The long-term planned production capacity is expected to reach 120GWh.

The industry believes that the current explosive growth in the mid-range market is just the beginning, especially in the case of a serious shortage of new energy vehicle models in the mid-range market, there is still a lot of room for growth in the future. At present, new energy vehicles in the mid-range market only account for 11% of all new energy vehicles, while in the fuel market, mid-range vehicles usually account for 35%, which is the absolute main force in the "spindle-shaped" car market. With the further penetration and development of new energy vehicles in the mid-range market, more models and a larger market will become important opportunities for Farasis Energy in the 23rd year and in the future.

Farasis Energy is making a full-scale attack on the mid-to-high-end market and is making great efforts in 2023

With its early layout in the mid-range blue ocean market and the full readiness of new products and new production capacity, Farasis Energy has made full preparations to maintain explosive growth in 2023. Not long ago, Farasis Energy announced a new production capacity layout of 30GWh in Guangzhou. This key project supported by the Guangzhou Municipal Government will further consolidate and expand Farasis Energy's share in the GAC Aion supply chain.

Figure: Farasis Energy's SPS super soft pack battery solution has won the attention and favor of many automakers

On the other hand, the SPS super soft pack power battery solution launched by Farasis Energy in 2022 has also received attention and favor from many automakers, including GAC. The SPS super soft pack power battery solution is characterized by large soft pack cells, module-free technology, manufacturing process and recycling technology. Not only does it significantly improve the volume utilization rate, but also the thickness and height of the cells can be flexibly adjusted through the use of a horizontal layout, which meets the requirements of automakers for high energy density, flexible layout, and platform universality in the era of electrification 3.0. At the same time, Farasis Energy's 800VTC super-pressure supercharging technology has also been mass-produced, which can support 2.4C-6C charging efficiency, and can provide a range of 400 kilometers in 10 minutes of charging in the future. It is worth mentioning that SPS is highly compatible with material systems, and large soft pack cells can be used in high-nickel ternary to low-nickel lithium-rich manganese, lithium iron manganese phosphate, sodium ion and other material systems to match different needs. In addition, the soft pack technology route of SPS is more in line with semi-solid and solid-state batteries that represent the future development trend of power batteries, which has also become an important reason why automakers and the industry favor Farasis Energy.

While developing and expanding its presence in the mid-range market, Farasis Energy will further expand its influence in the high-end market in 2023. In 2023, the Mercedes-Benz EQ series will be launched in more countries and regions, and will bring many important models such as the Mercedes-Benz EQS/EQE SUV. Its overall sales will further expand and increase. In addition, in the domestic luxury market, Farasis Energy has also created new growth points in the high-end market with new star customers such as Dongfeng Lantu and Geely Lotus.

Figure: Dongfeng Lantu Zhuiguang (left) and Geely Lotus ELETRE (right) are the "star" models that have attracted much attention in the market in 2023