According to the news of the surging news on January 16, south Korean power battery giant LG Energy Solution (LG Energy Solution, hereinafter referred to as LG New Energy), which will be listed at the end of January, has recently made big moves and threatened to pull "Ningwang" Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as Ningde Times) down the throne of the world's largest battery manufacturer.
According to the South Korean media "Daily Economic News", South Korean battery manufacturer LG New Energy plans to carry out a strategic cooperation with Japanese automaker Honda Motor (HMC.US) to establish a battery joint venture in the United States, with an investment scale of up to 4 trillion won (about 3.4 billion US dollars), and the annual production capacity of the factory can reach 40GWh, which is enough to power 600,000 electric vehicles. The report did not disclose the specific time and place of the joint venture's future investment and operation.
Earlier, LG New Energy said in a statement: "We are negotiating various ways of cooperation with a number of automakers around the world, including the establishment of joint ventures, but no decision has been made at this time." "If this news is true, this cooperation will become one of the few cases of alliance between Japanese and Korean companies." As of press time, LG New Energy has not responded to the above reports.
LG New Energy will officially raise shares on the Korea Stock Exchange on January 27, with plans to raise 12.75 trillion won (about $10.7 billion). That would break the record for south Korea's largest ever IPO.
To be honest, seeing that LG and Honda jointly want to challenge the Ningde era in one fell swoop, the biggest feeling is that this matter seems to be expected, so what should we think?
First of all, the current power battery track, in fact, the success of the Ningde era actually has its accidental factors behind many inevitable, the core reason is that the Ningde era is a company that has found the track and seized the opportunities of the times, so the success of the Ningde era often has its particularity, which is why many European and American giants have more or less unconvinced feelings after seeing the Success of the Ningde era. Moreover, under the situation that new energy vehicles have become the main theme of market development, winning the era has gradually become the focus of everyone's attention, which is why more and more international giants on the new energy vehicle track have begun to fully layout the core reasons for the new energy track. We look at the development history of the Ningde era, we see that this company actually has a certain special opportunity, after japanese companies gradually abandoned the power battery track, the Ningde era came to the fore and began to emerge in the market, which is the advantage of the Ningde era.
Secondly, is LG's layout really likely to shake the market dominant position in the Ningde era? From the current point of view, do not rule out this possibility, but it is really difficult to do it, after all, the Ningde era has a strong manufacturing supply chain system with China as the core, coupled with a strong market appeal and cost price advantage, these are LG may not have, LG's US factories may have certain tax advantages, but this advantage is actually relatively limited, so LG wants to overcome the Ningde era by building factories in the United States, there are still certain difficulties, Especially in the case of the strong unions in the United States, LG can really do this, in fact, it is still a question mark.
Third, for the Ningde era, the most important thing to do at present may be to increase vigilance, after all, the strength of the enemy is still very strong, at this time must not be taken lightly, we must increase research and development efforts, enhance their market competitiveness, only in this way can they find their own place in the increasingly fierce market competition, and truly get enough market competitive advantage in the market.