Traditional cars belong to the manufacturing industry and show a linear upward trend, while smart electric vehicles belong to technology-based companies and show an exponential upward trend. Tesla in the United States, NIO and Xiaopeng in China are all like this

Recently, the 2nd International Exchange Conference on New Energy Vehicles and Power Lithium Batteries (CIBF2021 Shenzhen) was successfully held in Shenzhen. The theme of this conference is "Application and Development of Soft Pack Battery Technology", focusing on the development of soft pack battery technology, supply chain, market, and investment.

At the special forum on "Application Prospects of High Energy Density Soft Pack Batteries", Fang Jianhua, Partner and President of the New Energy Vehicle Venture Capital Sub fund of the National Science and Technology Achievement Transformation Fund, delivered a keynote speech entitled "Analysis of Trends and Investment Opportunities in China's Power Lithium Battery Industry under Dual Circulation", which analyzed in detail the development trends, investment opportunities, and industry thinking of the power lithium battery industry in the domestic and international dual circulation environment.

Fang Jianhua said that in recent years, due to a series of factors, China has formulated a development strategy that focuses on domestic macro circulation, and international and domestic dual circulation. And China's power lithium battery industry is currently in a situation where the domestic market is dominant, but leading companies are also actively participating in international market competition. Currently, domestic power lithium battery consumption accounts for about 80%, and about 20% participate in the international market.

Fortunately, the influence of Chinese power lithium battery companies in the international market is gradually increasing. Fang Jianhua predicts that in the next few years, the market share of China, Japan, and South Korea in the global power lithium battery market will shift from the current 3:3:3 to 4:3:2. More domestic battery companies will participate in international market competition, which is largely due to the many advantages of China's power lithium battery industry

Firstly, the market size is huge and there are many powerful power lithium battery companies;

Secondly, the industry chain is the most comprehensive, which not only ensures supply chain security but also avoids cost constraints;

Thirdly, it has strong technological innovation capabilities, rich product technology routes, and significantly higher technological iterations driven by market applications compared to other markets;

Fourthly, thanks to the driving force of industrial chain and technological progress, the cost reduction rate of domestic batteries is relatively fast.

Fang Jianhua pointed out that China's power lithium battery industry has gone from a stage of wild growth to a stage of reshuffle and elimination, and has now entered a stage of sustainable development. At this stage, the technological roadmap, market competition, and development prospects of power lithium batteries have become increasingly clear. For example, in the field of battery technology, lithium iron phosphate and ternary batteries are divided into two parts, no longer the policy oriented ternary battery. Meanwhile, with the reduction of subsidies and the rise of battery swapping models, Fang Jianhua expects that lithium iron phosphate will have greater application scenarios and market space.

In 2020, the market value of listed companies in the new energy vehicle and power lithium battery industry has experienced a surge, and many people have doubts about whether there is a foam in the new energy vehicle industry. Fang Jianhua believes that traditional automobiles are a manufacturing industry with a linear upward trend; Intelligent electric vehicles are technology-based companies that are rising exponentially, "said Tesla in the United States, NIO and Xiaopeng in China

When it comes to the development opportunities of power lithium battery companies, Fang Jianhua pointed out that although many powerful power lithium battery companies have entered the capital market and the pattern has basically taken shape, the pattern of the power lithium battery market has not yet been finalized. "Little Lotus has just emerged, and there are still some companies that focus on certain products, models, and technologies, including new forces. Recently, we have seen that new lithium battery forces such as Honeycomb have begun to make efforts (in terms of installed capacity)

In his speech, Fang Jianhua also shared his thoughts on investment targets for the power lithium battery industry: firstly, safety; Secondly, scarcity; Thirdly, it is forward-looking; Fourthly, it is economic.

Specifically, safety is a pain point in the power lithium battery industry, and companies and technologies with potential value in battery safety materials, design, technology, and other fields are worth paying attention to;

Scarcity is mainly manifested in the limited availability of upstream resources and the bottleneck of product dependence on imports;

Forward thinking technology refers to the next generation of technology products with large-scale applications or disruptive effects, such as ultra-high nickel materials, silicon negative electrode materials, flame-retardant electrolytes, and solid-state batteries;

Economy is important in areas such as intelligent manufacturing cost reduction, battery swapping to reduce operating, purchasing, and charging costs, battery cycle life improvement to reduce full lifecycle costs, and other new technologies and models.