Binding The World's Largest Automotive Technology Supplier, Ningde Era To Provide Battery Cells For It

- Sep 12, 2019-

The reporter learned from the Ningde era that it has formally established a long-term strategic partnership with the German automation giant Bosch Group (hereinafter referred to as Bosch), which will provide batteries for the Bosch 48-volt power battery system worldwide.

Stefan Hartung, chairman of the Bosch board of directors and chairman of the automotive and intelligent transportation technology business unit, said the company must understand battery technology, but it does not mean that it must be produced on its own.

Bosch 48 volt batteries have been widely used in many automotive manufacturers around the world. Bosch expects that by 2025, nearly 20% of the new cars sold worldwide will be equipped with Bosch 48 volt systems and battery packs. The Ningde era will supply it for a long time.

Bosch is a German industrial company and is known as the world's largest supplier of automotive technology. In the 2019 Fortune Global 500 list, it ranked 77th.

Since this year, China’s subsidies for new energy electric vehicles have fallen sharply, and state subsidies have fallen more than 50%, and local subsidies have all been cancelled.

A number of industry insiders told the interface journalists that the battery suppliers of new energy electric vehicles will enter the reshuffle period. Samsung SDI, LG Chem, Panasonic, SK and other foreign-powered battery giants will rejoin the battle for the Chinese market.

More than once in the Ningde era, it was mentioned in the announcement that competition will intensify in the future, so accelerate the full capture of the market.

In China, the Ningde era has almost cooperated with all first-tier car companies. In the past two years, it has accelerated the integration of large overseas customers and successfully entered the global supply chain system of Volkswagen, Daimler, Honda and other international car companies, and obtained BMW endorsement.

The Ningde era also did not forget to look for opportunities in the upper reaches.

On September 4, Ningde Times announced that it will spend A$55 million (approximately RMB 263 million) to subscribe to the Australian listed resource company through its wholly-owned subsidiary Hong Kong Times New Energy Technology Co., Ltd. (hereinafter referred to as Hong Kong Times New Energy). Pilbara Minerals Limited (hereinafter referred to as Pilbara) newly issued 183 million shares of common stock, accounting for 8.5% of the total share capital after the completion of this share issue.

Pilbara is principally engaged in the exploration and development of lithium and antimony ore and has a spodumene project in Western Australia. In the first half of this year, Pilbara's revenue was 42.79 million yuan and the loss was 28.93 million yuan.

After the capital increase is completed, Hong Kong Times New Energy will become the largest shareholder of Pilbara.

According to Ningde Times, the investment in Pilbara is to strengthen the upstream lithium resources reserve and help to further improve the upstream layout of the company's industrial chain.

However, the Ningde era also stated that the price of lithium may fluctuate due to changes in market demand, and does not rule out the risk that the mine capacity is lower than expected.

In the first half of the year, the Ningde era disclosed four investments, involving a total investment of over 4.1 billion yuan. Including: 510 million yuan to obtain 51% of the equity of Times Geely Power Battery Co., Ltd.; nearly 2.08 billion yuan investment in the Jiangsu era Xiangyang Park project; 1.26 billion yuan investment in the era of Shangqi Yuyang Park project; investment of more than 2686 million yuan to establish a production and research base in Europe.

In the first half of the year, Ningde achieved revenue of 20.263 billion yuan, a surge of 116.5% year-on-year; profit of 2.102 billion yuan, an increase of 130.79%.

The main business of the Ningde era includes power battery systems (cells, modules and battery packs), energy storage systems, and lithium battery materials. Among them, the power battery system contributed more than 80% of the revenue, with sales of 16.892 billion yuan.

In the past two years, the sales of power batteries in the Ningde era were the highest in the world, and they were called unicorns in the power battery industry.

According to the China Automotive Research Center, the total installed capacity of China's power batteries in the first half of this year was 30GWh, a year-on-year increase of nearly 93.6%. Among them, the installed capacity of the Ningde era was 13.8GWh, accounting for 46% of the domestic installed capacity.