The Ministry of Industry and Information Technology recently released the "Standard Conditions for Automotive Power Battery Industry" (2017) (draft for comments), causing no small shock in the industry. The trigger point is to raise the production capacity threshold: compared to the 2015 version, the annual production capacity of the lithium-ion power battery unit is increased from “not less than 200 million watt hours†to “not less than the 2015 versionâ€. 8 billion watts." A 40-fold increase in capacity requirements is an impossible task for most companies. For this reason, many people feel that the draft for comment is somewhat “unreliableâ€.
Of course, those who give “not reliable†evaluations are mostly business people who may be blocked from the threshold. It is reported that there are currently more than 140 power battery companies in the country. At present, only BYD and Ningde era companies can reach the production capacity standard. There are about 4 enterprises that have reached the capacity by the end of the year, and the remaining 96% or more will not reach the above. standard. If this standard is implemented from January 2017, most domestic power battery companies will stop production due to failure to meet the standards, resulting in a series of problems such as inventory backlog and workers' unemployment. Enterprises with a large production capacity of 20 to 4 billion watt-hours will increase investment in order to expand their standards. This will not only disrupt the development plan of the enterprise, but may also lead to mistakes caused by investment risks and make the enterprise into a desperate situation. In this case, the transition from industry panic to industry crisis becomes a high probability event.
But those who agree to set a high threshold don’t think so. They believe that the current domestic power battery industry has been chaotic, and if it is not standardized, let it develop, the industry crisis will appear faster and more serious. According to data released by the Higher Industrial Research Institute (GGII), since 2015, the amount of new investment in the field of power batteries has exceeded 100 billion yuan, and the number of domestic power battery companies has increased rapidly from 50 at the end of 2014 to 2016. Nearly 150 in the year, nearly three times the growth. Among the more than 100 new enterprises, there are traditional digital battery transformations, which are extended from the upstream and downstream, and also from different fields such as real estate, steel, fire protection, and home appliances. Most of these enterprises have the purpose of speculation to get rich quickly. There is not much technical strength at all. In order to occupy a place, they will adopt a “digger tactic†to intensify corporate conflicts and make each other's competition worse.
In fact, the phenomenon of “digging people†that has been widely criticized reflects the impetuousness and quick success of the industry, and this is the biggest hidden danger in the industry. The chaos “digging people†indicates that the industry lacks technical talents, which also reflects the lack of overall technical strength of the industry. What if there is no technology? It can only copy and imitate, and it is shoddy, resulting in low-end overcapacity. The direct result is that the safety of the product is not enough to cause a safety accident. Statistics show that there have been more than 20 domestic new energy vehicle safety accidents this year.
Sadly, there are many industry problems and many crises, but many companies are unaware of it and are still adding chaos. It is ridiculous to say that the “80 billion watt-hour†standard line that caused controversy in the draft was delineated according to the results reported by various companies. In the first half of this year, the Ministry of Industry and Information Technology conducted research on the production capacity of various manufacturers, and asked for truthful reporting, but many companies resorted to fraud and added a lot of water to the capacity data.
It can be said that the false reporting of production capacity, blind expansion, low-cost competition, and intractable places to protect the sinking has become a hidden reef under the boom of the power battery industry. Without timely measures to clean up, the entire industry will face the danger of hitting the rocks. Under this circumstance, the Ministry of Industry and Information Technology issued the specifications at the right time. Before the industry is likely to be more chaotic, before the vicious competition of bad money to drive out good money, it is essential to maintain the long-term stability of the industry. Only in the power battery industry can we ensure quality, reduce costs and improve safety by taking the road of large-scale and standardized production. Only through the top-ranking, strong technical strength and high concentration of several enterprises to build a rational production industry, China's power battery industry can achieve long-term stable and healthy development.
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