Analysis of layout characteristics in the field of new energy power batteries

In 2020, joint ventures and cooperation in the field of new energy power batteries continued, mainly showing three characteristics: First, vehicle manufacturers entered the power battery market and opened up the situation through equity cooperation; second, cooperation between whole and parts was accelerated, and supporting and strategic cooperation continued; third, focusing on the energy storage field, and establishing joint ventures.

1. Cooperation feature 1: Vehicle manufacturers enter the power battery market and open up the market through equity cooperation

Vehicle companies are accelerating their cooperation with battery manufacturers, and their desire to control power batteries is becoming stronger and stronger. In the long run, the deep cooperation model between vehicle companies and power battery companies will become the mainstream.

Volkswagen invested in Guoxuan High-tech and became its largest shareholder: On May 28, 2020, Volkswagen China and Guoxuan High-tech's controlling shareholder Zhuhai Guoxuan and actual controller Li Zhen signed a "Share Transfer Agreement" and officially invested in Guoxuan High-tech.

Daimler will acquire 3% of Farasis Energy's shares: On July 2, 2020, a report related to Farasis Energy disclosed that Daimler Greater China invested 904.5 million yuan to participate in Farasis Energy's strategic placement of the Science and Technology Innovation Board IPO and acquired approximately 3% of the shares. This is the first time Daimler has invested in a Chinese battery manufacturer.

Honda invested 3.7 billion yuan to acquire shares in CATL: In July 2020, CATL announced the situation of its non-public offering of shares. The announcement showed that the number of shares issued by Ningde City was about 122 million shares (A shares), the issue price was 161.00 yuan per share, and the total amount of funds raised was about 19.7 billion yuan. In the final allocation, Honda subscribed for about 3.7 billion yuan.

2. Cooperation feature 2: Accelerated cooperation between whole and parts, continuous supporting/strategic cooperation

Battery companies and vehicle manufacturers are deeply bound together, with continuous activities such as supporting and strategic cooperation.

CATL cooperates with many vehicle manufacturers

On February 10, 2020, CATL reached a battery supply cooperation with Tesla, providing it with lithium-ion power batteries from July 1, 2020 to June 30, 2022.

On March 2, 2020, CATL and Nezha Auto signed a strategic cooperation agreement to further deepen cooperation in the field of new energy batteries. CATL will provide power battery solutions for Hozon Auto, and its advanced CTP high-integration battery Pack technology, 5-year 500,000-kilometer long cycle life technology and other battery technologies will be gradually applied to the five models developed by Nezha Auto based on the two major platforms.

In May 2020, Tesla and CATL accelerated their cooperation to supply "cobalt-free" batteries, which are not limited to lithium iron phosphate or ternary batteries. The specific supply products depend on market demand. CATL also plans to supply Tesla in China in 2021 with an improved long-life nickel-manganese-cobalt battery, whose cathode contains 50% nickel and 20% cobalt.

On August 5, 2020, Mercedes-Benz and CATL announced to deepen their cooperation in power battery technology to support the large-scale electrification of Mercedes-Benz's model lineup. The content of the agreement between the two parties covers power battery technology in various fields, including providing battery cells and modules for Mercedes-Benz passenger car products, providing overall battery systems for Mercedes-Benz light commercial vehicle products, and will have promising innovative technical indicators.

Farasis Energy signs contract with Jiangling Motors/China Machinery Intelligent Jun

On September 19, 2020, Farasis Energy signed a strategic cooperation agreement with Jiangling Motors and SINOMACH Zhijun. By 2025, Farasis Energy will provide a total of 150,000 power batteries for Jiangling Group New Energy, and jointly develop high-energy-density, long-range, and low-cost power batteries for its related models. By the end of 2023, Farasis Energy will also provide a total of 100,000 power batteries for SINOMACH Zhijun, and optimize costs in all aspects of the batteries and improve product quality. By the end of 2023, the two models will be promoted to achieve a total production and sales target of 100,000 units

3. Cooperation feature three: Focus on energy storage and establish a joint venture

Many battery companies are accelerating the layout of their energy storage businesses and competing to establish joint ventures to develop battery businesses.

Penghui Energy and Trina Solar established a joint venture: On March 13, 2020, a cooperation signing ceremony between Trina Solar (Changzhou) Technology Co., Ltd., a wholly-owned subsidiary of Trina Solar Co., Ltd., and Guangzhou Penghui Energy Technology Co., Ltd. was held in Changzhou. The two parties jointly invested in the establishment of Jiangsu Tianhui Lithium Battery Co., Ltd., which is engaged in the research and development, production and sales of lithium-ion batteries and battery systems.

Guoneng Battery joins hands with GCL Integration to deploy base station energy storage: On March 25, 2020, GCL Integration and Guoneng Battery's holding subsidiary Keneng Weida signed a "Letter of Intent for Investment Cooperation". The two parties intend to establish a joint venture company, Jiangsu GCL Cloud Storage Technology Co., Ltd., to fully undertake GCL Integration's 5G integrated energy system business such as base station energy storage, mobile energy, and photovoltaic storage and charging systems. The registered capital of the joint venture is 200 million yuan, of which GCL Integration subscribed 110 million yuan in cash, with a shareholding ratio of 55%; Keneng Weida subscribed 90 million yuan in cash, with a shareholding ratio of 45%. The business scope includes energy storage systems, 5G base station photovoltaic storage and charging integrated systems, battery cell manufacturing, PACK system integration, power battery manufacturing, etc.

CATL and YST jointly establish energy storage company: On April 20, 2020, CATL and YST jointly established a 100 million yuan company, Xinneng YST (Yangzhou) Technology Co., Ltd., with a registered capital of 100 million yuan, to jointly develop, produce and sell energy storage PACK products and related supporting services. YST holds 90% and CATL holds 10%. According to the latest registration information, the joint venture's business scope includes battery manufacturing, battery sales, intelligent power transmission and distribution and control equipment sales, intelligent control system integration, high-efficiency energy-saving technology research and development in the power industry, and emerging energy technology research and development.

Guoxuan High-tech and Liuzhou Investment established a joint venture: Hefei Guoxuan High-tech Power Energy Co., Ltd., a wholly-owned subsidiary of Guoxuan High-tech Co., Ltd., signed a "Cooperation Agreement" with Guangxi Liuzhou Dongcheng Investment Development Group Co., Ltd. in June 2020. The two parties jointly invested 150 million yuan to establish a joint venture company, Liuzhou Guoxuan Battery Co., Ltd. Among them, Hefei Guoxuan invested 100 million yuan of its own funds, accounting for 66.67% of Liuzhou Guoxuan's registered capital; Liuzhou Investment invested 50 million yuan, accounting for 33.33% of Liuzhou Guoxuan's registered capital.