Everyday Finance exclusive, quick attention
On January 24, Geely Automobile announced that the joint venture company established under an agreement with Lifan Technology has completed the industrial and commercial registration procedures and obtained a business license issued by the Chongqing Liangjiang New Area Market Supervision and Administration Bureau. The joint venture is named Chongqing Ruilan Automobile Technology Co., Ltd. ("Ruilan Automobile").
As of the close of trading on January 24, Geely Automobile's Hong Kong stock closed at HK$18.76 per share, down 3.5%, with a total market capitalization of HK$188 billion.
Power to change the power track
According to reports, Ruilan Automobile will launch a variety of power form products in the future. Based on self-developed power exchange technology, Ruilan Automobile is committed to creating an intelligent power exchange ecology and providing competitive power exchange products and services for the market.
According to the planning of both sides, the future "power exchange" service will not only be "power exchange", but also include the "vehicle power separation" management mode and ecological layout of vehicle battery operation, decommissioned battery energy storage and utilization, and scrap battery regeneration. It is reported that the joint venture plans to build more than 5,000 high-speed substations by 2025, covering more than 100 core cities.
In December 2021, Lifan Technology announced that it intends to jointly invest in the establishment of a joint venture with Geely Automobile Holdings with a registered capital of RMB 600 million, Lifan Technology invests RMB300 million in monetary funds, with a shareholding ratio of 50%, and Geely Automobile invests RMB300 million in the form of monetary funds, with a shareholding ratio of 50%.
Some analysts said that the joint venture between Geely and Lifan mainly provides a complete set of solutions for B-end and C-end users, including power exchange products and power exchange services. The joint venture will adopt the GBRC platform (Global Battery Rapid Change), which can adapt to a wide wheelbase range of 2700~3100mm, covering many categories such as cars, SUVs, MPVs and even logistics vehicles and light trucks, to meet the needs of different markets such as online ride-hailing cars, private cars, taxis, and logistics vehicles.
Geely Automobile currently has new energy vehicle brands such as Extreme Krypton, and industry insiders pointed out that the recent favorable policies for power exchanges and the launch of Geely power exchange brand models will help Geely to layout on the two major tracks of electrification and intelligence and accelerate the transformation to new energy vehicles.
Favorable policies are frequent
Range anxiety is a major obstacle restricting the development of the new energy automobile industry, and the power exchange mode of "vehicle and electricity separation" can alleviate problems such as "endurance anxiety" more efficiently than charging. Recently, many ministries and commissions have issued a number of favorable policies to support the development of the power exchange industry.
On January 21, the National Development and Reform Commission and seven other departments jointly issued the "Implementation Plan for Promoting Green Consumption", which clearly promotes new energy vehicles and gradually cancels the purchase restrictions on new energy vehicles in various places. Strengthen the construction of supporting infrastructure such as charging and replacing electricity, new energy storage, and hydrogenation.
In October 2021, the General Office of the Ministry of Industry and Information Technology issued the "Notice on Launching the Pilot Work on the Application of The New Energy Vehicle Power Exchange Model", and a total of 11 cities included in the scope of the pilot are expected to promote more than 100,000 power exchange vehicles and more than 1,000 power stations.
The cooperation between main engine factories and battery factories is also constantly strengthening, accelerating the popularization of power exchange products. Recently, CATL launched the power exchange brand EVOGO, calling on OEMs to participate in promoting the development of power exchange in the new energy automobile industry. Nio Motors is at the forefront of the industry in the field of power exchange, and in August 2020, it established Weineng Battery Asset Company with NINGDE Times, Hubei Technology and Guotai Junan International to promote the BaaS power exchange model. In addition, BAIC, SAIC, Changan and other OEMs have also launched power exchange models.
CITIC Securities Research Report said that the rapid growth of new energy vehicle production and sales will give birth to the accelerated development of the charging and replacing industry, comprehensively considering the advantages of a more efficient power exchange model, more friendly to the power grid and land, as well as a lower degree of standardization, a relatively closed system, higher investment costs and other disadvantages, it is expected that in the next 5 years, the domestic new energy vehicle energy supplement market will still maintain a pattern of charging as the mainstay and power replacement as a supplement, but under the impetus of capital, main engine plants, policies, etc. It is expected that the application and promotion of the power exchange mode in some high-end passenger cars and operational vehicles will be significantly accelerated.
Editor: Wang Yin
![Geely and Lifan joint venture company completed industrial and commercial registration, named "Ruilan Automobile"[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)