In the era of traditional gasoline vehicles, auto parts giants are mostly closely related to domestic auto companies, even a mother compatriot. For example, the three German giants and Bosch, China, Denso, Hyundai Mobis and so on. This means that auto powers often have the complete advantages of the entire industry chain.
With the development of electrification and intelligence, this pattern is changing, and vertical integration advantages become more and more difficult. For example, in the intelligent landscape, the cutting-edge technologies of mobile internet and artificial intelligence are in the hands of technology companies outside the automotive circle. The transformation of traditional car companies into technology companies is not as easy as expected.
In the field of electrification, on the one hand, electrification is disintegrating the past parts and components chain, leading to the crisis of declining demand for traditional parts and components, and on the other hand, the three power systems have become new core components. For example, the reality now is that battery supply is almost entirely in the hands of Asian suppliers.
It has become an industry consensus that Asian power battery suppliers dominate the global market. They are expanding production capacity in Europe, China and the Americas, winning lucrative orders from major car companies. However, some OEMs such as Volkswagen are still worried that there may not be enough battery supply to match their electrification plans. If the battery enters the seller's market, it may be quite unfavorable to the auto giant.
Thanks to the Chinese government's support for pure electric vehicles, the hottest battery supplier is Ningde Times from China. At one time, the rapid growth of the Ningde era was inseparable from the government's rigid regulations on domestic battery manufacturing. Although, China's electric vehicle subsidies are about to withdraw in 2020. But now the Ningde era has grown and expanded, going abroad, establishing the first overseas factory in Germany, and considering building a factory in the United States. Its customers are international auto companies including BMW, Volkswagen Group, Daimler, Toyota, Volvo and Honda.
Thanks to Tesla's outstanding performance in the pure electric market, its battery supplier Panasonic has reached a capacity of 35GWh at its Nevada plant. Panasonic currently has battery production bases in Japan and China, and has established new joint ventures with Toyota. Its customers also include Honda and Ford.
China's BYD is a relatively special battery supplier. On the one hand, it has won the favor of investment master Buffett. On the other hand, it is also a complete vehicle company. After its market position in China was gradually surpassed by the Ningde era, BYD began to open up supplies, not only supporting itself, but also supplying batteries to other car companies. In addition to battery matching, BYD is also conducting technical cooperation. Recently, BYD signed a contract with Toyota Motor to establish a joint venture. According to reports, BYD will provide pure electric chassis technology.
Another Korean battery company is LG Chem, a pioneer in the power battery industry. It won a contract with GM Volt in 2008 and is now a supplier to Ford, Renault, Hyundai, Tesla, Volkswagen and Volvo. After the Chinese market retired, LG ushered in new opportunities in China. On the one hand, it invested US $ 2.8 billion to set up a factory near the Tesla factory in Shanghai. Enterprises negotiate joint ventures and cooperation. LG is also considering expanding production capacity in the United States and Poland.
Samsung SDI, a subsidiary of South Korea's Samsung Electronics, has battery plants in South Korea, China and Hungary. Among them, Hungary's battery factory can support 50,000 electric vehicles, and is currently investing in expansion to provide batteries for BMW, Volvo and Volkswagen.
Another battery company is also from South Korea, namely SK Innovation (SKI). SKI is a late-stage battery company. Currently, the battery factory in South Korea has an annual output of 4.7GWh. The goal is to increase annual production capacity to 33GWh by 2022.