According to the latest terminal risk data, the total number of power batteries installed in China reached 177.
8GWh in the first half of 2024.
Among them, independent brands occupy 80% of the market, and the installed capacity is as high as 143.8GWh. There is no doubt that Ningde Times is still the largest battery supplier with 83.
4GWh installed capacity (including joint venture brand battery supply).
It was closely followed by Fudi batteries, which overtook 50GWh in the first six months, thanks to a surge in sales at parent company BYD and an increase in external supply.
Followed by Guoxuan Hi-Tech, Yiwei Lithium Energy, China New Airlines, Honeycomb Energy and other battery enterprises.
Specific to Chinese brands, through an in-depth analysis of the installed capacity data of power batteries, we find that in addition to these battery manufacturers with good momentum, there are many emerging battery companies that are providing products for car companies.
It is worth noting that some battery manufacturers are “dedicated” to a single car company.
Although these emerging battery companies only occupy about 10% of the market share, it is difficult to pose a substantial threat to the head battery manufacturers in the short term, but their existence undoubtedly provides a more diversified choice for car companies.
Photo Source: Guoxuan Hi-Tech, which battery do Chinese brands use? Galaxy collated the power battery installation data of nearly 20 Chinese car companies, and there were significant differences in battery supply strategies among different car companies.
BYD had the highest installed capacity of batteries in the previous six months, reaching 46.
9GWh, all self-supplied by Fudi batteries.
It is worth noting that Fudi batteries have begun to be supplied to the outside world, and its own brand customers include Dongfeng Group, Chery, Xiaomi Group, FAW Group, Changan Group and Great Wall Motor.
The installed capacity of Fudi battery was 3.
3GWh in the previous six months, accounting for 7% of the total, and the share continues to increase.
In sharp contrast, Dongfeng Group adopts a diversified battery supply strategy.
Dongfeng Group has established supply relationships with nearly 20 battery manufacturers, of which Xinwanda and Ningde Times account for 40.
9% and 22.
7% respectively, as well as well-known battery suppliers such as Fudi, Honeycomb Energy, Yiwei Lithium Energy and China Chuangxin Airlines.
This diversification strategy helps to reduce costs and ensure the security of supply.
Geely Group, SAIC and other companies have also adopted diversification strategies.
Geely Group cooperates with 11 battery suppliers.
SAIC cooperates with as many as 14 battery manufacturers, including emerging or small battery companies such as Polyfluoroduo, Penghui and Weihong Power.
This may be related to the many sub-brands of the above-mentioned car enterprises, as well as covering commercial, passenger and other different markets.
Even Xiaomi, which has just joined the bureau, has two battery suppliers, Ningde Times and Fudi, which provide them with ternary and lithium iron phosphate battery products respectively.
Weilai has added Weilan New Energy as a supplier this year, and currently accounts for less than 0.
1% of the installed capacity.
Ningde Times is undoubtedly the most popular battery supplier for Chinese car companies, with more units installed than 56GWh (excluding joint venture brands) in the first six months of this year.
Statistics of nearly 20 Chinese brands, only Jianghuai, Skyworth and other car companies have not purchased Ningde era battery products.
With its strong technical strength, Ningde era accounts for more than 30% of the battery installed in 13 Chinese car companies, and 90% in some brands such as BAIC, ideal, Lulai and so on.
Sinotrans, another battery maker with strong momentum, has also reached supply cooperation with more than 10 car companies, but there is still room to increase its market share.
In the first six months of this year, Zhongchuang Xinhang installed 15.
1GWh batteries, which was a far cry from the performance of Ningde era and Fudi, and only accounted for more than 20 per cent of the installed capacity in a few car companies, such as Xiaopeng, Zero and Guangzhou Automobile.
Guoxuan Hi-Tech, Yiwei Lithium Energy and Funeng Technology are also facing similar challenges.
although there are a large number of cooperative car companies, they are still in the position of second-and third-tier suppliers in most car companies.
This pattern reflects the cautious attitude of Chinese car companies in choosing batteries: reducing risk through diversification strategies and building closer partnerships with technologically leading suppliers on the other.
What is the origin of “these battery manufacturers”? according to Galaxy, there are currently more than 40 battery manufacturers supplying battery products to Chinese brands.
Among them, some battery companies only serve one or two or a small number of car companies, but the installed capacity is not to be underestimated.
Some battery manufacturers even have a close relationship with car companies.
Quzhou Polar, for example, is currently only supplied to Geely Group, and the installed capacity reached 1.
9GWh in the first six months, accounting for 12.
6% of the group’s total.
The company is a major supplier of lithium iron phosphate batteries for polar krypton, a high-end brand of Geely, and provided 1.
3GWh battery products for polar krypton in the previous six months.
According to App, Quzhou Polar was founded in 2022 and is a wholly owned subsidiary of Geely Group.
Its products are mainly suitable for Geely high-end electric platform under the vast framework of polar krypton, Geely Galaxy and other brands.
At the end of last year, the gold brick battery developed by polar krypton (800V lithium iron phosphate battery with a volume utilization rate of 83.
7%) was mass produced in Quzhou polar power base.
In the future, the proportion of Quzhou polar electricity to Geely Group’s battery supply is expected to continue to rise.
The trend of auto companies developing their own batteries is not unique to Geely Group.
In order to ensure the safety and stability of battery supply, many car companies realize battery self-research through joint ventures, shareholding or incubating battery enterprises while cooperating with mainstream battery manufacturers such as Ningde era.
For example, Juwan Technical Research, owned by GAC GROUP, has begun to supply products to brands such as Ian, with 0.
06GWh installed in the first six months, accounting for 0.
6 per cent of the group’s total.
Weilan New Energy, which is invested by Lulai Capital (which owns a 16.
75% stake), also began supplying ternary batteries to Lulai cars this year.
Although the two battery companies account for less than 1% of the installed capacity, it shows that the car companies are determined to lay out the battery field.
Some car companies even follow the example of BYD, whose battery companies supply to the outside world to broaden the group’s profit channels.
For example, Volkswagen’s Guoxuan Hi-Tech and Great Wall incubated Honeycomb Energy are getting bigger and stronger, not only supplying its own parent company, but also partnering with other car companies like Fudi batteries.
Another rookie worthy of attention is Zhengli Xinneng, which has supplied to FAW, Zero, SAIC and other car companies.
In the first six months of this year, the cumulative installed capacity of the enterprise reached 3GWh.
Data show that Cao Fang, founder of Zhengli Xineng, is the sister of Cao Dewang, founder of Fuyao Glass.
The enterprise is currently valued at more than 15 billion yuan, and the installed capacity is rising rapidly.
Emerging battery manufacturers such as Polyfluoroduo and Ningfu New Energy are also worthy of attention.
Ningfu New Energy mainly supplies Chery Automobile and SAIC, and has established a joint venture with Juwan Technical Research.
Bay new energy.
Ningfu New Energy installed more than 1GWh in the previous six months.
The equity penetration chart shows that Ningfu New Energy is controlled by multi-fluorine, with the support of the government of Nanning, Guangxi.
Interestingly, PFD is also a battery supplier to Chery and SAIC, but has no direct equity relationship with the two automakers.
Among the battery suppliers of Dongfeng Group, several are currently its “exclusive” suppliers, such as Zhaoqing excellent Power, Delaneng, Henan Lithium Power, Thornton New Energy and so on.
Although these enterprises have no direct equity relationship with Dongfeng, such as Zhaoqing Youyou Power is supported by local state-owned enterprises, which shows the complex industrial ecology.
Thus it can be seen that the electric vehicle battery supply chain in China presents complexity and diversity.
What is the proportion of ternary and lithium iron phosphate? In June, 2024, the installed capacity of power batteries of Chinese brands broke through the 140GWh mark.
Lithium iron phosphate and ternary batteries continue to dominate the market, accounting for 96% of the total installed capacity.
However, different brands, model levels and price ranges have different preferences for these two types of batteries.
Generally speaking, the installed capacity of ternary batteries for new energy products located in the middle and high end market accounts for a larger proportion.
Data statistics show that the proportion of lithium iron phosphate batteries installed in the new energy market below 100000 yuan is more than 90%.
Lithium iron phosphate batteries are also dominant in the market of 100000-200000 yuan, accounting for more than 80%.
As the price increases, the proportion of lithium iron phosphate decreases gradually.
In the price range of 200000-250000 yuan, the proportion of ternary batteries increased significantly, to more than 40%.
In addition, starting from this price range, Ni-MH batteries are loaded in batches with a total installed capacity of 8MWh, corresponding to sales of more than 4000 vehicles.
In the market of more than 250000 yuan, ternary batteries began to dominate, accounting for more than 70 percent.
The proportion of ternary batteries in the range of 500000 to 600000 yuan is as high as 99%.
However, in the market of more than 600000 yuan, the proportion of lithium iron phosphate rebounded to more than 60%.
It is worth noting that the “ternary + lithium iron manganese phosphate / lithium iron phosphate” power battery combination is widely used in this area, accounting for about 5% of the total installed capacity of our own brands.
The selection of battery type is similar to that of vehicle type.
Among the models of class An and below, the proportion of lithium iron phosphate has increased steadily, with the highest level of A0 up to 94%.
From grade B to grade D, the proportion of lithium iron phosphate decreased gradually, from 54% to 0%.
This distribution is closely related to the characteristics of the two batteries.
Lithium iron phosphate battery has the advantages of high safety and low cost, but its energy density is low, so it is suitable for middle and low-end products.
Although the cost of ternary battery is high, it has excellent performance in terms of energy density and battery life, so it is suitable for high-end market.
High brand premium can also cover the high cost of ternary batteries.
In terms of battery supplier pattern, lithium iron phosphate market is dominated by Fudi battery and Ningde era, of which Fudi accounts for more than 50% of the installed capacity.
The ternary battery field is dominated by Ningde era, accounting for about 60% of the market share.
When purchasing ternary batteries, many high-end brands only consider Ningde era, such as Hongmeng Zhixing of Huawei, fierce warriors of Dongfeng Group, and Feifan and Zhiji of SAIC Group.
However, BYD has adopted a unique strategy.
BYD owns a number of high-end brands, but mainly uses lithium iron phosphate batteries, and the overall installed capacity of ternary batteries is only 0.05GWh. In contrast, most of the competing brands at the same level use ternary batteries.
At present, the price of ternary battery is about 0.
45yuan / Wh, while the unit price of lithium iron phosphate is about 0.
32yuan / Wh.
This extreme cost control strategy may be one of the key factors for BYD to maintain high profitability.
On the whole, China’s electric vehicle battery market is dominated by leading enterprises, but second-and third-tier suppliers are also growing rapidly.
Many car companies are developing their own or investing in emerging battery companies to enhance their bargaining power, ensure the security of the supply chain and reduce the cost of core components.
How to find a balance between performance, cost and supply chain security will be one of the key factors that determine their competitiveness.
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