Rebirth 99 to become a car giant

The popularity of S9 in the future is actually not an isolated incident.

The entire electric vehicle industry is developing several years faster than the same period in history.

Especially in China, various independent brands have followed Future Auto and launched their own electric vehicles, and even established new energy companies to produce electric vehicles.

Companies such as Yangcheng Aian, Didu New Energy, and Changan Automobile are among the best.

Most of the batteries produced by these companies use Nanshan batteries.

With the unexpected development of the industry, the supply pattern of the battery industry has also begun to undergo significant changes.

"Mr. Cao, according to the latest adjusted production plans of various companies, the production capacity of our battery factory is very tight."

"And the supply of production capacity in the next two years is also in a very tight state."

Lin Cheng is now enjoying the troubles of happiness.

Insufficient production capacity is a relatively rare thing in all walks of life in China.

More often than not, companies have excess production capacity, and everyone is thinking about how to expand the market and absorb production capacity.

The most obvious one is the steel industry.

Many people may have heard of such an interesting steel production capacity ranking.

First in China, second in Hebei, China, third in Tangshan, Hebei, China, fourth in Japan, and fifth in the United States!

China has made steel so cheap that the price of a pound of steel is even lower than that of a pound of cabbage.

Even for high-end products like special steel, most of the time the price is not as good as that of organic vegetables.

It’s really hard to describe.

Normally speaking, there will not be insufficient production capacity for power batteries.

Because in recent years, Chinese power battery manufacturers have sprung up like mushrooms after a rain.

In the past few years, many battery manufacturers have been worried about their production capacity consumption.

However, if we really look at the specific production capacity, in fact, the annual production capacity of most battery manufacturers was less than 1GWH a few years ago.

What is the concept of this thing?

If we put it on the S9, we can only produce more than 10,000 units, which will be used up in a month.

Of course, in recent years, under the leadership of Nanshan Battery, coupled with the rapid increase in sales of electric vehicles by companies such as Yangcheng Aian and Changan Automobile, the production capacity of various domestic battery manufacturers has also been increased rapidly.

Nanshan Battery, in particular, leads the world in terms of production capacity and has already broken through the important threshold of 10GWH.

But compared with the production capacity of more than 100GWH in later generations, it is definitely still far behind.

When investing in a battery production line, starting from acquiring land, mass production usually takes about 3 years.

Even if it is slightly compressed, two years is normal.

Even if there is a ready-made production line, it will ultimately take about a year to complete.

This is assuming there is no problem with the supply of battery equipment.

In fact, because so many battery manufacturers are expanding production, the related equipment supply schedule is also relatively tight.

"In China, the tight production capacity of any industry cannot exist for a long time. In two or three years at most, our battery production capacity will be able to meet the requirements."

"I estimate that the new battery production capacity added this year may be comparable to the country's cumulative production capacity before last year."

Cao Yang's words are really not nonsense.

China's industrial industry is so crazy.

As long as everyone sees that there is a lot of money to be made in a certain field and the supply of products exceeds demand, they will definitely rush to it.

Enterprises that do not have factories in this area will find ways to solve related bottlenecks.

As for companies that are originally involved in the battery industry, they will not miss this opportunity.

Financing, loans, building new factories.

In this case, all means will be used quickly.

Various places are definitely very supportive of projects like battery factories that can be linked to new fields such as the new energy industry.

If you invest in a traditional lead-acid battery factory, many places may be a little bit disgusted with it.

But if it is a power battery factory, it is completely different.

"Yes, but even if we can predict this situation, our production capacity still needs to expand rapidly."

"Even if there is excess production capacity by then, it will first be the excess of other companies. Our production capacity should still be controllable."

Lin Cheng is still very confident in Nanshan Battery.

As the largest battery manufacturer with leading technology in the country and even the world, Nanshan Battery does not need to worry about its own production capacity that no other manufacturer will need in the future.

At least until the production capacity of other manufacturers is significantly vacant, there is no need to worry about the idle production capacity of Nanshan Battery.

Considering that although the electric vehicle industry is developing rapidly now, there is still a huge gap compared with ten years later.

Therefore, even if the supply and demand pattern changes in two or three years, there is really no need to worry.

Therefore, Cao Yang also agreed with Lin Cheng's expansion plan and said: "Nanshan Battery predicts the number of projects based on each customer's projects. If it is necessary to invest, just invest boldly without getting entangled."

"However, if some customers give an exaggerated number of units, you may need to consider how to avoid risks."

"Especially when some customers' battery packs have special specifications, and even the cells are special-purpose, if we invest in special production lines or even factories for them, we will not only make a lot of money, but at least be guaranteed not to lose money. plan.”

Cao Yang's concern is not unreasonable.

Now if you tell me that the annual demand for a project is 100,000 vehicles, this basically requires a production capacity of about five or six GWH, which can be enough to build a factory.

At this time, if I build a factory specifically for you, what will you do if you sell thousands of vehicles a year, or even fail to sell thousands of vehicles?

Wasn’t my factory built in vain?

No money for land? Well, maybe it really doesn’t cost any money.

What about the equipment?

Equipment always costs money, right?

There are also all kinds of labor recruited, these are all costs.

Without any guarantee, it would obviously be a bit abnormal for Nanshan Battery to bear all the risks.

That's why Cao Yang specially reminded him.

This kind of thing will happen with a high probability, or it will happen in some projects, so you must pay attention to it.

"Mr. Cao, we are also considering this issue internally."

"There are two main methods now. One is to let the OEMs invest in the equipment themselves and pay the equipment in one lump sum. Our production lines will be built specifically for them."

"On the other hand, both parties sign a formal contract to restrict the number of units. If the specified number of units is not reached in the future, the other party will have to compensate."

"In short, we definitely cannot bear all the risks ourselves."

Lin Cheng was obviously not that impulsive. When he saw the project, he rushed forward without caring about anything.

Although he is a professional manager, he also has to consider long-term solutions.

Just because he has been happy in the past two years will not make life difficult for him in a few years. That is not his purpose.

He is planning to work at Nanshan Battery for the rest of his life and turn Nanshan Battery into a very famous company in the country and even the world.

Although Nanshan Battery is now the battery factory with the largest production capacity in China and even the world, its popularity among ordinary people is actually relatively low.

What Lin Cheng needs to do next is to let more ordinary people know the name of Nanshan Battery.

This definitely requires brilliant performance to support it.

"It's good that you have this consideration in mind, but you should also pay attention to the methods. There is no need to make everyone think that Nanshan Battery is too overbearing."

"Of course, we must insist on what we should insist on. If some customers can't accept it, there is no need for us to force it."

Not all customers are worth serving.

Cao Yang was quite touched by this.

The business conditions of individual customers are really a bit exaggerated, and there is absolutely no need to compromise.

Otherwise, if you make a relatively big compromise with a certain customer, this information often cannot be kept completely confidential. Sooner or later, other companies will know this content.

At that time, various impacts will be relatively large.

This is obviously not a situation Cao Yang wants to see.

Lin Cheng was also aware of this.

…

The demand in the battery industry is so hot. As the industry leader, Nanshan Battery can take the biggest piece of the cake, but the overflowing soup can also make other companies live a good life.

Guoxuan Hi-Tech, which has been striving for power batteries, has finally begun to usher in its turning point.

"Mr. Li, although our second factory just started construction last month, I think the planning for the third factory needs to be started as soon as possible."

"Even matters related to the fourth factory can be included in the schedule."

Shi Junhui finally felt proud and proud.

He has been at Guoxuan Hi-Tech for so many years, and it was really not easy to get an order in the past.

It can be said that I begged grandpa to sue grandma, and offered various alternatives and explanations.

The final result was not ideal.

As long as they can use their power batteries, they have no choice.

After that, although I started doing business a little bit, when it came to making money, I actually didn’t make much money.

The situation has begun to change rapidly in the past two years.

More and more customers are taking the initiative to communicate with Guoxuan about the situation of power batteries.

Therefore, the production capacity that they have been waiting for several years but not used has been fully used in the past two years.

In addition, the battery factory has also changed from single-shift production to double-shift production, and even works overtime on weekends.

Now the construction of the second factory has begun, and all work is quickly on track.

"The development speed of new energy vehicles in the past two years has really exceeded everyone's expectations. This is a good opportunity for our development."

"In terms of factory capacity expansion, we will do as you say."

“However, we still have to pay attention to customer development.”

"Although the difficulty is much lower than before, our strength is not the best in the industry. If the service cannot keep up, there will be fewer opportunities."

Li Zhen has been optimistic about the power battery industry for a long time.

However, the situation in the past few years was not so ideal.

Now spring is finally here.

"Well, I will run projects myself in the next period of time."

"Many OEMs are now slowly enriching their ideas."

“Although everyone’s top priority is Nanshan Battery, we also hope to have some other options in our supply system.”

"As their plan B, we actually still have our own value."

Shi Junhui's attitude was quite correct.

Now is not the time to compete with Nanshan Battery for the industry leader. It makes no sense to set such a goal.

Being able to eat some residue in the hands of Nanshan Battery is actually pretty good.

Otherwise, if the other party really goes too far, it is estimated that many battery companies will have a difficult time.

After all, as production capacity increases, theoretically the cost will be lower.

If there is a price war with you, you really may not be able to win.

You can't match others in terms of cost, and your technology is not as good as others.

It would be too difficult to win orders from others simply by relying on services.

Shi Junhui was confident, and Li Zhen was naturally happy to see the success.

However, although various battery manufacturers have acted relatively quickly, there is no way to immediately alleviate the overall tight supply situation of power batteries.

All OEMs are also aware of this situation.

"Mr. Cao, this year we also launched the Changan Star electric version based on the original Changan MINI to provide a lower-cost solution for those who use transportation."

"According to our estimates, the sales volume of electric vehicles in the past two years is expected to exceed 300,000, making Changan Automobile the largest electric vehicle sales company in the Chinese market."

Yi Jia and Cao Yang are also old acquaintances.

In the past few years, Changan Automobile and Nanshan Automobile Group have been deeply tied.

Therefore, Yi Jia would communicate directly with Cao Yang if there was any situation.

If the big bosses communicate well, the people below will have a clear direction for their work, which will save a lot of trouble.

The battery production capacity guarantee this time is also based on similar considerations.

Changan Automobile has now tried the benefits of electrification of small cars.

Whether it is Changan MINI or Changan Star, market feedback is very good.

Changan MINI focuses on the personal market, and Changan Star focuses on the commercial market.

Whether the car owner buys it for business or uses it as a black car, it is very convenient.

Especially in rural areas, every village has a canteen. Changan Star is the best choice for canteen owners.

People can charge it at home, which can significantly reduce the cost of using a car.

At the same time, it is also useful for the transportation of goods in the canteen.

It can even occasionally serve as a transport truck, transporting villagers to the county or town to earn some extra money.

After all, there are basically no buses in these places, and the popularity of vehicles has not reached the point where everyone has a car.

This naturally gives black cars room to survive.

Changan Automobile, as the king of mini cars, has naturally been aware of this market for a long time.

It’s just that all the products we built before were fuel vehicles, and now we’re going to test the waters with electric vehicles.

Most of these people are not long-distance runners anyway, so range anxiety is not that serious for them.

The problem of inconvenient charging is not a problem for Changan Star owners most of the time.

In this case, they cannot feel the shortcomings of electric vehicles, and the rest are all advantages.

Just launched last month, the Changan Star electric version has sold more than 5,000 units.

This is definitely a very impressive number.

If you continue to improve in the future, there will basically be no big problem if the final sales volume exceeds 10,000.

Changan Automobile definitely attaches great importance to this strategic model.

Otherwise, Yi Jia would not have made a special call to communicate with Cao Yang about the battery supply problem.

Just let the people below communicate directly with Nanshan Battery.

"Mr. Yi, Changan Automobile is an important customer of ours, and we will definitely give priority to ensuring your needs."

"However, the growth rate of electric vehicles has been rapid recently. Many vehicles are selling better than originally expected. Battery production capacity is relatively tight. This is an objective reality."

Although Cao Yang will definitely arrange people to go all out to ensure the supply of Changan Automobile, he can't pat his chest right away.

That makes the help seem so worthless.

And it’s not necessarily something that can be solved by just patting one’s chest. If Changan Automobile’s electric vehicles sell too well and Nanshan Battery cannot handle it, it will be embarrassing.

So when it’s time to mention difficulties, you still have to mention them.

"The changes in the electric vehicle industry are indeed very fast, especially in the past year, many car companies have successively launched electric vehicles on the market."

"The entire southern market's acceptance of electric vehicles is changing rapidly, and the penetration rate in some cities has reached 10%."

“If you look at a specific market segment, it may be even higher.”

"This is indeed a bit beyond everyone's imagination."

Yi Jia also knew that what Cao Yang said was true.

No one will leave business alone, and Nanshan Battery is no exception.

It's just that the current situation is indeed quite special. For Changan Automobile, although their two star models are not high-priced and positioned relatively low-end, they are high-impact models.

When ranking car sales, people will not give you a discount to calculate sales just because it is a low-end model.

Whether Changan Automobile's overall domestic ranking can continue to rise and whether it can break through the 1 million mark, the performance of these two electric vehicles is critical.

It would be a pity if sales could not reach the desired level due to insufficient battery supply.

Cao Yang also expressed his understanding of this.

"Nanshan Battery is already considering a 24/7 production model. People will stop and the equipment will not stop. Only the minimum time for equipment maintenance will be reserved. The rest of the time will be used to produce batteries."

"Especially our factory in Shuangqing City will be the first to adopt this model."

"If there is insufficient production capacity, we will also process it at the Yangcheng factory and then transport it there."

Yi Jia's phone number has already been called. Cao Yang must have made some promise to her.

Otherwise, wouldn't this force Changan Automobile to develop more battery suppliers?

Even if developing new suppliers cannot immediately solve the current problems, it can at least make the future supply situation less troublesome.

This should be something that many OEMs are considering.

Nanshan batteries are good, and there is no problem if I mainly use Nanshan batteries.

But if there is only one battery supplier, Nanshan Battery, there will be a problem.

At least one or two more must be introduced, especially for OEMs that have already increased their volume.

For example, Changan MINI and Changan Star, Changan Automobile is internally considering the simultaneous development of new battery manufacturers.

At that time, whether it is used to negotiate price reductions or ensure supply, it will be a very beneficial solution.

For example, people can tell Nanshan Battery that if you reduce the price by 5% this year, I can guarantee that your share will not change.

If you don't lower the price, your share will be reduced by 30%.

Similarly, he can also tell manufacturer B that if you reduce the price by 10% this year, I will increase your share by 20%.

The final initiative will slowly be in the hands of Changan Automobile.

Of course, they certainly wouldn't dare to go too far with this kind of thing.

After all, Nanshan Battery is not just a supplier. Its relationship with Nanshan Engine, Nanshan Transmission and Nanshan Auto Parts is something Changan Automobile has to consider.

If you reduce the share of Nanshan Batteries today, and they tell you that there is insufficient supply of other parts the next day, it will definitely be enough for you to drink.

Even with various other constraints, Nanshan Group companies still have a lot of cards to play.

Changan Automobile also knows these things internally.

With Cao Yang's promise, Yi Jia felt relieved.

However, Yi Jia's call, combined with Lin Cheng's previous report, also made Cao Yang further realize that the current power battery production capacity is really tight.

So I simply called Pan Jinxing and went to the Nanshan Equipment site to take a look at the battery equipment production line.

As the world's most automated provider of large-scale mass production lines for power batteries, Nanshan Equipment is now an unavoidable presence for all domestic battery manufacturers.

To expand production, you have to purchase equipment.

Battery production equipment is not only provided by Nanshan Equipment, but also imported equipment from Japan and other overseas countries.

After all, they have already formed a complete battery production equipment industry chain earlier.

However, the price of imported equipment is definitely higher than that of Nanshan equipment. The key is that the delivery cycle is still relatively long and cannot meet everyone's requirements.

Not to mention that the overall production line efficiency is not as good as Nanshan equipment.

Therefore, any manufacturer that is not particularly fond of imported equipment will definitely give priority to Nanshan equipment.

If you really can't accept the price of Nanshan Equipment, you will combine your own needs, lower the requirements for the automation of the production line, find other domestic manufacturers to produce part of the equipment, and then go to Nanshan Equipment to order part of the equipment.

Anyway, no matter which plan it is, it is difficult to completely skip Nanshan equipment.

As a result, Nanshan Equipment has a lot of orders.

The production lines of production equipment generally do not use large-scale assembly lines for production. In that case, there is simply not such a large equipment market to support it.

More often than not, most of the equipment is assembled from parts produced by manual production lines or production lines with a relatively low degree of automation.

Nanshan Equipment's battery equipment production line is not much better.

This means that the number of battery production line equipment that can be provided each year is relatively fixed, and the room for improvement is not particularly large.

Under normal circumstances, this is no problem.

But now China's new energy vehicle market is obviously not a normal thing.

Everyone is rushing into this field, and relevant departments are also relatively active in providing subsidies.

This has led to some signs of overheating in electric vehicles, and everyone is very enthusiastic about investing in power batteries and other three-electric components of electric vehicles.

When it comes to Nanshan Equipment, the company has been slow to receive orders for various battery production equipment, and the delivery cycle has been postponed to next year.