Pay attention to the new energy vehicle market -Lithium - Ion Battery Equipment

Samsung pays attention to the new energy vehicle market -Lithium - Ion Battery Equipment

The popularity of new energy vehicles is increasing in my country. As the core component of new energy vehicles, batteries are "concerned" by more and more foreign companies. Samsung Group of South Korea is one of them.

In the past two years, due to the double squeeze of Apple and Chinese mobile phone manufacturers in the mobile phone business, Samsung's mobile phone market share has been declining. In order to seek a breakthrough, the battery business has become an important pillar of Samsung. The current demand for batteries in the Chinese market is quite large.

Some data predict that as my country becomes the world's largest electric vehicle market, the proportion of global vehicle battery consumption in my country is expected to reach 20% by 2020. This figure is up 16 percentage points from 2014. Statistics from Zhiyan Data Center show that by 2020, my country's demand for lithium-ion batteries is expected to reach 7.55 billion.(Lithium - Ion Battery Equipment)

This trend has drawn strong attention from Samsung. At the end of 2014, the Samsung SDI battery factory was put into operation in Xi'an, and its production line will produce 40,000 units of high-performance vehicles a year below the cost price. The purpose is to defeat my country's local lithium-ion battery manufacturers.

South Korea's Samsung Electronics buys BYD shares to create a foothold in my country

The reason why Samsung spared no expense in laying out the battery business in my country is also because it has tasted the sweetness in the field of mobile phones with its core components. In the smartphone market, although Apple stands out, Samsung, relying on its core advantages in mobile phone chips, screens, memory and other fields, once made Apple both love and hate it. It was only after Huawei made breakthroughs in key components that it gradually began to fight against Samsung.

In the electric vehicle market, Samsung is implementing the same strategy, that is, controlling key components such as lithium-ion batteries in its hands, so as to control the right to speak in the field of electric vehicles. As the implementer of Samsung's power lithium battery strategy, the strength of Samsung SDI, a subsidiary of Samsung, cannot be underestimated. It is now the world's sixth-largest maker of electric vehicle batteries, with clients including international giants such as BMW, Chrysler and Volkswagen. Many domestic automakers are also customers of the company.

However, Samsung's strategy of trying to carve up my country's lithium-ion battery market is suffering a setback. Not long ago, the Ministry of Industry and Information Technology announced the company catalog (the fourth batch) of the "Regulations for the Automotive Power Battery Industry", and Samsung Battery was not included. Many car companies have given up orders with Samsung in order to get new energy vehicles into the catalog and get government subsidies.

In this context, on July 21, a piece of news about Samsung's stake in BYD surfaced. BYD announced that the company completed a non-public offering of 252 million shares at 57.40 yuan per share, raising a total of 14.473 billion yuan. Among them, Shanghai Samsung Semiconductor Co., Ltd. subscribed 52.26 million shares, totaling 3 billion yuan, and will hold 1.92% of the company's total share capital after the completion of the non-public offering. Shanghai Samsung Semiconductor Co., Ltd. is the sales legal person of Samsung Electronics Semiconductor in my country.

South Korean media previously reported that Samsung Electronics will invest 500 billion won (about 3 billion yuan) in BYD. After BYD Inc. issues new shares, Samsung will own 4% of BYD's equity. However, BYD stated in the afternoon announcement that Samsung Electronics did intend to purchase BYD's newly issued shares, but the data of purchasing 4% of the shares was not true.

The announcement also shows that the raised funds will be used for iron-powered lithium-ion battery expansion projects, new energy vehicle research and development projects, as well as replenishing working capital and repaying bank loans. It is understood that Samsung Electronics has been supplying various sensors and other automotive semiconductors and LCDs to BYD. BYD supplies metal boxes and low-end batteries for smartphones to Samsung Electronics. This investment is in line with the strategic interests of the two companies.

Obviously, when the policy is not conducive to itself, Samsung is temporarily at a disadvantage to compete with Chinese battery manufacturers. At this time, Samsung chose the curve to enter the market, and sought the possibility of layout in my country's battery market by investing in BYD. According to Korean media reports, it is impossible for Samsung to fail to meet the requirements in terms of technical standards, and the Chinese side has been reluctant to "release", most likely to protect the local battery factory.

This situation will definitely affect Samsung's future performance. According to data, in the first quarter of this year, Samsung SDI's loss was close to 600 million yuan. Samsung obviously does not want to see this situation continue, it is trying more other ways to enter the Chinese market.

Some media predict that Samsung's stake in BYD may take some action in the field of electric vehicles. In 2013, Samsung Motors announced its entry into the field of electric vehicles after cooperating with Renault. In this cooperation with BYD, Samsung's own excellent battery technology and BYD's experience in the field of electric vehicles can promote the further development of Samsung's electric vehicles, so as to participate in the competition in the Chinese market in the form of electric vehicles?

No matter how Samsung batteries develop in my country's market in the end, my country's local battery companies must step up research and development to improve the market competitiveness of their products. Otherwise, once Samsung has formed a scale in my country's electric vehicle market, autonomous car companies can only take into account their own interests.



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