Equipment manufacturing industry is the basic industry of national economic development, and equipment enterprises have become the new force to promote the innovation, upgrading and development of lithium battery manufacturing enterprises. Yu Shimin, chairman of Guangdong Hongbao Technology Co., Ltd., gives his own interpretation of the development trend of lithium battery manufacturing industry in recent years based on his years of experience in lithium battery equipment manufacturing industry.
Upstream equipment and downstream battery: water and fire
Since 2019, lithium battery manufacturing industry has experienced “the strongest cold wave in history”. The decline of financial subsidies and the low demand of car market, coupled with the high price of upstream raw materials, have been transmitted to the power battery manufacturing enterprises, resulting in a sharp drop in the profit margin of enterprises, an extension of the accounting period, an unprecedented tension in the capital chain, and the escape of small enterprises, forcing some enterprises to transform or go bankrupt.
The cold wave experienced by battery enterprises also affected the equipment enterprises. Yu Shimin confessed that this is the unique and unhealthy payment method for the battery enterprise “3331”. Due to the overheated development of lithium power industry, some battery enterprises are trying to occupy the market with their capital strength, and they are extending the account period upstream. However, the profit of equipment enterprises is not high, which will squeeze all the interest capital in the long run.
Industrial chain is indispensable. Equipment enterprises can not survive, and what about the development of battery enterprises? To some extent, the super long accounting period of battery enterprises is caused by the excessive dependence of vehicle enterprises on financial subsidies. However, Yu Shimin still hopes that the business model of “kill the goose and get the egg” must be changed. The downstream enterprises should also take into account the long-term development of the entire industrial chain and not enjoy the profits of the industrial chain alone.
Yu Shimin suggested that we should shorten the payment period, reduce the financial cost pressure of upstream enterprises, and make upstream enterprises “profitable”, so that the whole industry could develop well.
Equipment cost and product quality: close relationship between lips and teeth
It is precisely because of the “cold winter”, some enterprises in order to occupy the market at a low price, sacrifice quality to reduce costs. Yu Shimin believes that the future power battery market must be “quality is king”, and the product quality of battery enterprises should be stable and reliable, rather than relying on quantity to win. For the battery companies to reduce the cost of equipment, he believes that cheap low-end equipment can not save the cost of enterprises, on the contrary, high-quality equipment is very helpful to reduce the cost.
For example, he said, if a machine produces 20000 batteries a day, the yield rate will increase by 0.5%, which is equivalent to less scrap of 100 batteries, that is, 365 thousand batteries a year. If the price of each battery is 20 yuan, more than 700000 yuan can be saved in a year. The price of more than 1 million yuan of equipment is up to 10%, that is to say, it can earn back the cost by spending more than 100000 yuan in a few months. On the surface, the one-time input cost of the equipment is high, but the high-quality equipment not only does not increase the cost input, but also reduces many losses.
Moreover, the safety of battery products is particularly important for the new energy vehicle industry which attaches great importance to safety. Fine production can reduce the generation of burr, dust and other problems, improve the consistency of the electric core, and reduce the potential safety hazards. “It is impossible to make good products without good lithium battery equipment“, Yu Shimin stressed that high-quality equipment can help improve the safety of battery core products, not only can save a lot of after-sales costs, but also can create a good reputation and open up a larger market for enterprises.
Industry reshuffle and entry of foreign enterprises
The ship is above the waves. Under the cold winter, some enterprises with weak capital and technical strength are gradually out of business, and the concentration of lithium battery manufacturing industry is increasing. For equipment companies, it seems that there is a “shrinking” situation in the downstream market, with fewer target customers. In this regard, Yu Shimin confirmed that, on the surface, the number of enterprises in the industry is indeed small, but the remaining enterprises are more powerful, and they also pay more attention to the high-end equipment to bring high-quality, integrated production mode. At the same time, the high-end production capacity of these enterprises is also in the trend of short supply and increasing year by year. In this way, the market of lithium battery equipment has not become less, but the market of high-end equipment has increased.
In fact, this has also promoted the reshuffle of the equipment field. Some low value-added equipment and enterprises with poor R & D strength are forced to withdraw from the stage because of losing the market. High precision production equipment with high degree of automation and intelligence has gained more and more favor. Yu Shimin stressed that the reshuffle of the power battery industry in the past year is a good thing for equipment enterprises such as Hongbao technology.
At the same time, the pace of localization of foreign brands in new energy vehicle related industries is gradually accelerating, and the tide of foreign enterprises building factories in China is coming. Yu Shimin said that foreign brands, such as Tesla and other enterprises, are relatively advanced in management mode, which can play a role of reference and learning for domestic enterprises, which is also conducive to the improvement of the overall quality of the supply chain system of domestic enterprises. At the same time, the entry of foreign brands will accelerate the pace of survival of the fittest in the whole industry.
However, foreign equipment enterprises also have their own advantages, such as accuracy, good product rate, etc., especially the benign payment method has a certain competitiveness. Yu Shimin believes that domestic equipment enterprises are more familiar with the domestic industrial environment and will have more advantages in after-sales service.
When it comes to the future of industry development, Yu Shimin hopes that the whole industry chain can be truly market-oriented, manage enterprises in a healthy way, and focus on the long-term development of the whole industry chain instead of pursuing short-term interests.
Editor in charge: WV