The accelerated rise of the European power battery industry is opening up new market growth space for Chinese lithium battery equipment companies.
Recently, many Chinese lithium battery equipment companies, including Pioneer Intelligence, Yinghe Technology, and Hengyi Energy, have received purchase orders from the French start-up battery company Automotive Cells Company (ACC), which will provide lithium battery production equipment for its 13GWh super battery factory in France.
ACC was established in June 2020. It is mainly engaged in the development and production of electric vehicle battery cells and modules. It is jointly operated by Stellantis, Saft, a subsidiary of Total Energy, and Mercedes-Benz. Supported by French, German and European authorities.
ACC plans to build three factories with a production capacity of 40GWh in Germany, France and Italy respectively. The total power battery capacity will reach 120GWh in 2030, and it will continue to develop and produce next-generation high-performance batteries.
As one of the representatives of local power battery companies in Europe, ACC purchased production equipment from a number of Chinese equipment companies at the same time, indicating that its power battery capacity construction will enter a new stage, and it is expected that new lithium battery equipment orders will be placed in the later stage.
In addition, Swedish battery manufacturer Northvolt recently announced the start of shipments, becoming the first European battery company to supply power batteries to European OEMs. Chinese lithium battery equipment companies, including Pioneer Smart, also provide production equipment for their factories.
Behind Northvolt and ACC's increased investment and orders in equipment, lithium battery raw materials and recycling, the EU is accelerating the construction of the local power battery supply chain, which also provides good development for outstanding Chinese lithium battery equipment companies with the ability to "go global". Chance.
Overall, the actions of the above-mentioned battery companies in equipment procurement and battery production and delivery have released several major signals:
1. Europe has accelerated the construction of a local battery supply chain, and the capacity building of local start-up battery companies has accelerated, releasing huge demand for procurement.
In fact, in addition to ACC and Northvolt, other European battery companies, including Sweden's Northvolt, France's Verkor, Britain's Britishvolt, Norway's Freyr, Norway's Morrow, Italy's Italvolt, and Serbia's ElevenEs, are also accelerating their power battery capacity construction.
A report released in June 2021 by the EU NGO Transport and Environment Federation shows that the total number of super factories that have been built or are under construction in existing projects in Europe has reached 38, with an estimated total annual output of 1,000GWh. The demand will exceed 300 billion yuan (calculated by 1GWh corresponding to the equipment investment of 300 million yuan).
Coupled with the power battery capacity deployed in Europe by Chinese and Korean battery companies such as LG New Energy, Samsung SDI, SK on, Ningde Times, Guoxuan Hi-Tech, Honeycomb Energy, Funeng Technology, etc., it is estimated that the market demand for lithium battery equipment in Europe will be by 2030. will be further improved.
2. China's lithium battery equipment companies have accelerated to go overseas, the performance of domestic equipment has been recognized by international battery companies, and overseas orders have begun to enter a period of growth.
At present, Europe is accelerating the construction of local power battery production capacity, but the weak local supply chain has become the biggest obstacle to the rise of the European power battery industry.
Under this circumstance, a group of Chinese lithium battery equipment companies with the ability to "go global" have obtained good development opportunities and become an important force in the construction of the supply chain of European battery companies.
On the one hand, after years of development, the performance of domestic lithium battery equipment is no longer inferior to those imported from Japan and South Korea, and it is even in a leading position in some fields. At present, large-scale substitution of imports has been achieved in domestic power battery manufacturing and exports have begun, laying the foundation for domestic equipment to enter the supply chain of European and American battery companies and OEMs.
On the other hand, the new infrastructure for power batteries in Europe will put forward requirements for efficient and stable production and delivery in the field of lithium battery equipment. Compared with Japanese and Korean companies, China's leading lithium battery equipment companies currently have faster and more stable delivery capabilities, which will become an important choice for European battery companies to speed up the release of production capacity.
Among them, European battery companies including Northvolt, ACC and other European battery companies have purchased Chinese lithium battery equipment on a large scale, indicating that the performance of domestic equipment has been recognized by them, providing favorable conditions for domestic lithium battery equipment to enter the European supply chain, and is expected to drive other European battery companies to reach Chinese lithium battery equipment companies. Cooperation.
In addition, Chinese battery companies including Ningde Times, Honeycomb Energy, Funeng Technology, China Innovation Aviation and other Chinese battery companies have established factories in Europe, and also require their equipment suppliers to supply their overseas factories and provide nearby supporting services, which in turn drives Chinese lithium battery equipment companies from Products, technologies, services, supply chains and other aspects of the global layout, deeply involved in the European supply chain competition.
At present, a number of equipment companies, including Lyric Robot, Haimuxing Laser, Pioneer Intelligence, Jiatuo Intelligence, Lianying Laser, Yinghe Technology, Hengyi Energy, and Naconor, have entered the ranks of international car companies/power battery companies. Supply chain, it is expected that more Chinese equipment companies will enter the international market later.
With the acceleration of battery capacity construction in Europe, the overseas orders of the above equipment companies have entered a period of rapid growth, which will further enhance the international competitiveness of domestic equipment.
It is worth noting that although Chinese lithium battery equipment companies have been recognized by European battery companies with their competitive advantages in technology, products and supply chains, they also face multiple pressures and challenges.
The implementation of EU carbon tariffs and the revision of the "New EU Battery Regulations" mean that Europe will have stricter control over the local power battery industry chain. The zero carbonization of the European battery industry chain will put forward stricter requirements for Chinese lithium battery equipment companies in terms of technical indicators, quality control, performance and regulatory certification.
At the same time, if Chinese lithium battery equipment companies want to deeply participate in the European market, they must deeply understand the manufacturing process and technical route of European battery companies, establish an international R&D and service team to meet the requirements of European customers, and comprehensively enhance the company's international Competitiveness.
In addition to the high investment cost, how to deal with Europe's political environment, emission regulations, infrastructure requirements, industrial chain support, patent disputes, corporate culture, talent management and customer requirements are all important issues for Chinese lithium battery equipment companies going overseas. new title.
Under this circumstance, Chinese lithium battery equipment companies must have core competitiveness in terms of technology, products, scale, cost-effectiveness, capital and other hard power, and make long-term strategic plans.
