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Whether purchasing a battery or customizing a battery, after customers make multiple comparisons, there are always different prices. It often occurs that under the same performance and capacity, the quotations can be vastly different. To make a battery, first identify the brand, then consider the labor cost, and finally the material cost. Calculated in this way, each has its own price. At this time, some customers will question and say, "Why is your price so much higher than others?" So today we will talk about where the high cost comes from. Let's start with the battery cell. As we all know, battery cells are used to make batteries. Individual battery cells are welded and assembled into battery packs to make a finished battery.

There are good and bad battery cells, and there are also many battery cell brands. Domestic well-known brands like CATL, BYD, CALB, and Guoxuan High-Tech are among them. Secondly, brands like SVOLT, Farasis, EVE Energy, BAK Battery, and Lishen are commonly used battery cells. Foreign brands like Panasonic, LG, Samsung, and Sony are also relatively well-known with better performance battery cells. There are different shapes of battery cells, including cylindrical, square, and pouch. The main materials of battery cells are lithium iron phosphate and ternary lithium. Battery cell qualities are classified into three categories: A, B, and C. Battery cell specifications include 18650, 26650, 21700, 14500, 14250, 32650, and so on.

The above are relatively commonly used battery cell types. There are also some that are not commonly used. We don't know what brand or quality they are. There may even be disassembled ones, that is, what we call refurbished and inferior products. The cost of such battery cells is generally not high, so the price of the batteries made from them will not be very expensive. But should we question the quality and safety? Would customers really dare to use batteries made from such battery cells?

Of course, there are some customers with special requirements who need to use imported battery cells to meet the usage needs of their equipment. However, the cost will be more expensive. For the same battery cell, why are imported battery cells more expensive than domestic ones? Returning to what we are going to discuss today, let's take a look at where exactly imported battery cells are more expensive. The following will list five aspects for analysis and comparison. (For reference only)

1. Technical route
   China's technical route in the field of power batteries has always been several battery routes such as lithium iron phosphate, ternary, lithium manganate, and lithium iron phosphate. Among them, lithium iron phosphate battery technology is the most mature. The Tesla Model 3 unveiled at the Shanghai Auto Show on July 5, 2018 uses a lithium iron phosphate battery as the power battery. However, we know that the battery materials of the Tesla Model 3 are mainly ternary materials: graphite (LiFeF) and ternary materials (LiFeNCM811). Among them, ternary materials are the most widely used materials in lithium batteries, accounting for about 70% of the total amount; the other half of the power batteries come from lithium iron silicon phosphate (LiFeNCM811). This technical route is more costly compared to other ternary battery technical routes.

2. Raw material cost
   China's raw materials mainly include lithium ore, lithium salt, electrolyte, and separator. In terms of lithium ore, it is mainly distributed in Xinjiang, Qinghai, Tibet, and Yunnan. Among them, Xinjiang accounts for more than 70% of the national resource reserves, and Qinghai accounts for about 10% of the national resource reserves. Therefore, lithium raw materials account for about 20%-30% of the cost of lithium battery raw materials in China. China's lithium salt production enterprises mainly include Yantai Wanhua Chemical Co., Ltd., Salt Lake Co., Ltd., Jiangsu Zhongtian Technology Co., Ltd., Tinci Materials Group Co., Ltd., Huizhou Tinci Chemical Co., Ltd., etc. Lithium salts mainly include magnesium chloride, calcium chloride, lithium iron phosphate, etc. In terms of electrolytes, the electrolytes mainly used in lithium battery production in China come from enterprises in Japan and South Korea. Lithium iron phosphate has a very small market share in China, while Japan and South Korea have huge advantages. 80% of the raw materials required for their lithium iron phosphate come from foreign enterprises.

3. Production cost
   For a battery cell, product cost is very crucial. But there are reasons for the high cost of imported battery cells. At present, battery manufacturers are also trying to reduce production costs and improve product quality. However, if imported battery cells want to enter the domestic market, they must pass international certification before they can be sold. And domestic battery cells must undergo international certification to ensure that their quality and performance meet overseas market standards. These two factors have increased the production cost of batteries to a certain extent.

4. Manufacturing process
   The battery cell manufacturing process includes multiple links such as battery cell packaging, battery cell manufacturing, lithium battery testing, battery production and manufacturing, and battery sales. It requires a lot of manpower, material resources, and financial resources to complete. Of course, the manufacturing process is also divided into many levels. The process of each level is relatively high, so the manufacturing process is more important. If the manufacturing process is not good, the cost of manufacturing a battery in the product will also increase correspondingly. For example, when a battery enterprise uses a ternary lithium-ion battery for charging, it will take a lot of time and human capital from assembly to discharge and then to energy density testing. If the manufacturing process is not good or the battery manufacturing process does not meet the enterprise's expected requirements, it will lead to the inability to meet the expected requirements in the product and also increase the battery production cost. Therefore, the manufacturing process has a great impact on battery production costs.

5. Service life
   In terms of service life, domestic lithium batteries have nearly 10 more years than imported lithium batteries. For example, in 2016, Panasonic TLC3020 released by Panasonic in Japan has a capacity of 390 mAh. The actual usage time is more than 30 years, and the attenuation is more than 50%. This kind of battery is almost scrapped. Imported lithium batteries are cylindrical lithium batteries with a longer lifespan. So imported lithium batteries are much cheaper than domestic ones!

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