Alleviate the shortage of battery production capacity Xiaopeng G9 or use Sunwoda power batteries

A few days ago, it was reported that Xiaopeng Automobile or will use Sunwoda's 4C power battery (4C battery can adapt to fast charging) in some models of Xiaopeng G9, and its supply share will exceed 50%.

At the earnings report in May last year, He Xiaopeng, chairman and CEO of Xiaopeng Automobile, said that the shortage of lithium iron phosphate battery production capacity has made Xiaopeng production face uncertainty, which continued until the end of the year.

The fundamental reason for the shortage of production capacity is that consumers' demand for smart electric vehicles exceeds expectations, from upstream mining and material companies to midstream battery manufacturing links are not prepared, and it takes time to increase production capacity.

In short supply, CATL, which can provide the largest and most stable battery supply, has made a lot of profits, and it has served the most customers with higher battery pricing than its peers, and its market share in China is more than 50%.

For smart electric vehicle companies, they do not want to rely entirely on a single supplier. In addition to Xiaopeng Motors, GAC Aegean and Weilai Automobile also use suppliers other than THE NINGDE era in new cars. Geely has a joint venture with Sunwoda, Fu Neng and other battery companies to jointly produce batteries. Hive Energy, which was spun off from the Great Wall, received 20 billion yuan in financing last year. BYD has been developing its own batteries and building its own factories.

According to the department, the major power battery manufacturers in the world have disclosed production capacity plans of more than 3000GWh, and these production capacities will be gradually put in place within 3 to 5 years. Even if these plans are only halfway delivered, the shortage of production capacity will gradually ease, and the shortage of supply will not last forever.

Sunwoda, which received the Xiaopeng order, started with a mobile phone battery and was listed on the A-share market as an Apple supplier in 2011. In 2008, Sunwoda began to do automotive power battery packaging and battery management system (BMS), and in 2018 began to officially mass-produce battery cells. Sunwoda has done oem work for the G3 listed by Xiaopeng in 2018. Since last year, Sunwoda has announced orders from Geely, Dongfeng, GAC and SAIC.