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However, a lithium-ion battery supplier revealed to Tencent Motors that lead-acid batteries currently account for a higher proportion of the two wheel electric vehicles on sale, as they are "low-cost and have a shorter lifespan, which dealers prefer". But guided by policies, he believes that lithium-ion batteries will gradually dominate the market.

Although the new national standard policy has given different regions a buffer period of 2-3 years, the degree of relaxation of policies varies, "he said.

However, from the data, it can be seen that brands such as Xiaoniu, which focus on smart lithium-ion batteries, have significantly increased their sales in the past two years. According to the 2019 annual report of Xiaoniu Electric, last year, Xiaoniu Electric achieved a revenue of 2.076 billion yuan, a year-on-year increase of 40.5%.

It is understood that the important supplier of lithium-ion batteries for Xiaoniu electric vehicles is Yiwei Battery, and the important supplier is 18650 cylindrical battery. And its important competitor, the lithium-ion battery supplier of No. 9 electric vehicle, has added ATL, which is mainly installed on its C-series models.

Another major battery giant, Ningde Times, is also accelerating its layout in this field.

On June 12, Halo, Ningde Times and Alipay jointly announced the establishment of a joint venture to enter the second round electric vehicle market, with an initial investment of 1 billion yuan. The important aspect of this cooperation is to build a "power station" for electric two wheeled vehicles. Compared to four-wheel vehicle power exchange infrastructure, the construction cost of two wheel vehicle power exchange facilities is lower, the cycle is shorter, and the investment return is faster.

Industry insiders say that the entry of the two giants, Ningde Times and ATL, means that this market will soon transform from a "blue ocean" to a "red ocean".

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