Nowadays, domestic car companies have broken out of the "Ningde era abandonment tide", which is because the customer growth rate of the Ningde era is too fast, resulting in unstable supply.
Recently, domestic car manufacturers such as Xiaopeng Automobile and Gac Motor Group have changed battery suppliers from the Ningde era to AVIC lithium batteries; the main suppliers of BMW electric vehicle batteries in Germany have been replaced by Ewell Lithium Energy; Tesla, Weilai Automobile, and Volkswagen (Volkswagen) have also turned to BYD, The second largest electric vehicle battery factory in China, to sign a supply contract.
Chinese car companies have begun to reduce their dependence on the Ningde era, and abandon the original lithium iron phosphate battery (LFP) and use a ternary lithium pool (NCM), which also makes the Ningde era gradually lose orders. In addition, the factories in the Ningde era are mostly concentrated in China, and for the car manufacturers that plan to enter the international market, it is more advantageous to choose battery manufacturers with overseas production sites, and the technology of other competitors is gradually catching up with the Ningde era.
In 2021, CATL is the global leader in electric vehicle batteries, accounting for 29% of the market, surpassing south Korea's LG New Energy's 22.2% (20). However, with the expansion of LG New Energy in Europe and the United States, the annual production capacity has gradually increased, and now it has shown a trend beyond the Ningde era.