Electric Bicycle Market May Become A New Battlefield For Lithium Battery Companies

- May 31, 2020-

Electric Bicycle Market May Become a New Battlefield for Lithium Battery Companies

Due to the huge stock of lead batteries, the prospect of "lead to lithium" in the field of electric bicycles is attractive, but the road to replacement is not smooth. Lithium battery companies from across the border want to profit from the electric bicycle market. The difficulty is conceivable. They face challenges in terms of cost, channels, and product standards.

First, ATL's subsidiary Xinneng Lithium Battery reached a cooperation with Yadi; then CAT: and Haro Travel, and Ant Financial established a joint venture company Ningde Zhixiang, focusing on two rounds of new energy product development, innovation promotion, and energy network construction; At the same time, BYD discussed cooperation with electric bicycle head companies and actively deployed ... The market competition was about to hit. The competition of the lithium battery giant is extending from the field of electric vehicles to the field of electric bicycles.

The lithium battery industry has undergone a major reversal

Such a change in the competition of lithium batteries is not an overnight matter. Entering 2019, the market competition of the power battery industry is further intensified, and the industry reshuffle is accelerated. Under the pressure of more than 50% of the subsidy retreat, OEMs have proposed stricter battery price reduction requirements. At the same time, the new subsidy policy puts forward higher requirements for new energy vehicles and power batteries in terms of comprehensive performance, which means that OEMs and battery factories must further upgrade their products.

In order to reduce costs and improve market competitiveness, OEMs will comprehensively consider battery companies in terms of product quality, product prices, supply capacity, and company funds. However, there are not many battery companies that can meet the above requirements. This also means that the vast majority of battery companies need to adjust the company's market strategy in 2019 to find the company's product market positioning as soon as possible.

With the entry of high-end lithium battery giants such as ATL and CATL, at present, the electric bicycle market is fiercely fighting. Traditional lead-acid battery manufacturers, lithium battery companies that have been cultivating electric light vehicles for a long time, and entrants from the field of new energy vehicle power batteries have stirred up the "two-wheel vehicle rivers and lakes" together. In the opinion of the industry, the admission of the lithium battery giant will likely subvert the traditional bicycle battery competition. Even within the lithium battery, there is fierce competition with different technical routes.

Judging from this year's market situation, the market pricing of major brands of lithium batteries has decreased to a certain extent. With the advantages of greater energy density, cleaner, environmentally friendly, and more portable products, the pace of lithium batteries replacing lead batteries has accelerated significantly . It is expected that my country's lithium electric bicycles will exceed 10 million in 2020, and the penetration rate will exceed 50% by 2021, realizing a major reversal of the industrial pattern.

Several companies start a new layout

The high requirements for the safety of power batteries in the new national standard for electric bicycles, as well as its own low-cost characteristics, make lithium iron phosphate batteries one of the most powerful competitors in the electric bicycle power battery market.

Some companies have already taken the lead in layout. Similar to Zhuoneng shares, a power battery company with a global advanced automated production line and international advanced inspection and testing equipment, which has a clear leading advantage in the field of electric vehicle power batteries, and related layout in the field of electric bicycle batteries will help promote the development of the electric bicycle industry. .

Zhuoneng Co., Ltd. has been researching and developing electric bicycle power batteries since 2013, and has carried out business cooperation with Mavericks, Chaowei and other companies in battery cells. In 2017, Zhuoneng Co., Ltd. began to lay out the electric bicycle PACK group business, and established a nationwide terminal after-sales service center. It cooperated with Dayang, Xinri and other well-known domestic electric bicycle manufacturers, and was finally highly recognized by customers. . Other companies are generally divided into two directions, one is to insist on the power battery market, through product technology upgrades and capacity expansion, improve product competitiveness and reduce costs, optimize customer structure and strategic cooperation with high-quality customers; the other is Reduce or abandon the power business, adjust the product structure to develop small power, energy storage, electric bicycles, low-speed vehicles and other market segments that do not rely on subsidies, and implement differentiated competition strategies.

Similar to Zhuoneng shares, it has a global advanced automated production line and international advanced inspection and testing equipment, and has a clear leading advantage in the field of electric vehicle power batteries. Relevant layout in the field of electric bicycle batteries will help promote the development of the electric bicycle industry, and the strict quality requirements for power batteries in the new national standard will also allow electric bicycle power batteries to get rid of the "low-end product" label and make electric The bicycle power market has become another "blue ocean" for battery companies to deploy high-end production capacity.