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Feng Xiao, Chairman and President of Xingheng, said, "We hope that Xingheng can expand from its existing main electric two wheeled vehicle products to the full range of electric transportation in the future, and also transform from a lithium-ion battery supporting provider to a comprehensive power and energy service provider

However, the person in charge of Xiaoniu told Tencent Automobile that Xingheng Power uses square batteries, and manufacturers who are accustomed to using cylindrical batteries will not easily choose. Relatively speaking, cylindrical batteries have a higher energy density, while lithium manganese oxide has poorer stability and lower cycle times compared to lithium iron phosphate, but its cost is lower. The scale effect of Xingheng has made its cost the biggest advantage

From two wheel electric vehicles to electric vehicles, the technology and stability test for battery suppliers is even greater. Suppliers like Xingheng who want to "move up" into the field of power lithium batteries still have a long way to go.

Challenge and pressure coexist in the field of lithium-ion batteries, leading the way

On the evening of October 27th, Ningde Times released its third quarter report, which showed that in the first three quarters of this year, the company achieved a revenue of 31.522 billion yuan, a year-on-year decrease of 4.06%, a net profit attributable to the parent company of 3.357 billion yuan, a year-on-year decrease of 3.10%, and a net profit attributable to the parent company of 2.567 billion yuan, a year-on-year decrease of 13.40%.

And Ningde Times, the leader in the field of lithium-ion batteries for electric vehicles, is also facing the pressure from Japanese and Korean suppliers. Ningde Times also hopes to find new business growth points to face the increasingly competitive market, and light electric vehicles may be a good choice.

It is worth expecting that both the light electric vehicle and new energy vehicle fields will usher in an explosive period in the next 2-5 years.

Research institutions predict that in 2021-2022, China's light electric vehicle market will experience a peak sales volume of approximately 45 to 50 million vehicles per year. Other institutions predict that with the increasing penetration rate of lithium batteries in the two wheeled vehicle market and the increasing share of power tool battery suppliers, the domestic shipment volume of small power lithium batteries is expected to reach 48GWh by 2025.

In the field of new energy vehicles, according to the roadmap plan, by 2035, energy-saving vehicles and new energy vehicles will each account for 50% of sales. Volkswagen, BMW and other giants have also entered the market, and in addition to the Ningde era, Guoxuan High tech also plans to achieve an annual battery production of 100GWh by 2025.

At the same time, the legitimate red lithium-ion batteries are also accelerating the industry's elimination with technological innovation.

Before the new national standard, there were over 1000 manufacturers holding production licenses in China's electric bicycle market. After the new national standard, as of the end of 2019, only over 700 companies have obtained over 4700 CCC certification certificates for electric bicycles.

On the one hand, the huge market prospect has triggered battery companies to accelerate transformation, upgrading, and strategic layout; On the other hand, new product forms and rising costs constrain the investment of small and medium-sized companies. Whether it's the "mid to high-end" path of traditional lithium battery suppliers or the exploration of emerging markets by giants, a rapidly shuffling lithium battery industry is gaining momentum.

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