Ningde times teleconference exchange minutes

1. Introduction of the secretary of the board of directors:

Ten production bases, one of which was in Germany, also began production last year, ranking first in global shipments for 5 consecutive years, with a market share of 33% in 2021 (18% in 2017), a total of 3.8 million units, and energy storage battery shipments from January to September 2021 8Gwh, with an expected annual share of 33%;

Three strategic directions:

Fixed petrochemical energy alternatives (perovskite photovoltaic + energy storage),

Mobile energy alternatives (vehicle power batteries),

Electrification + intelligent market innovation integration should be electrification rate: has been very clear

The electrification rate is expected to be 51% in China, 54% in Europe, 22% in the United States in 2025, 89% in China in 20230, 87% in Europe, and 69% in the United States.

Energy storage development: 30% of the power ratio in 2030, 4 hours in duration, 40% in 2050, 4 hours in duration

Electric vehicles: in the next 5 years, 52% compound growth, energy storage 72% compound growth, energy storage 2025 416Gwh, 2030 1000Gw, 2050 5000Gwh,

C-end: 77% in 2021, 71% in 2020, C-end development is very fast, the company's energy storage in 2021 has ushered in an outbreak.

U.S. energy storage from 2.9Gwh in 2020 to 13Gwh, Europe and other countries also grew quickly domestic recycling share of 51%, recycling efficiency of 99.3%, production and sales: 1.7s can produce a battery, covering 18 years / 200,000 km,

First three quarters: the proportion of overseas revenue increased from 16% to 21%,

2. Introduction of the chairman:

Three concepts, the technology must be good, the operation should be excellent, the service should be good,

R & D: material design, intelligent decision-making, multi-system simulation, knowledge mining, summary - relying on digital R & D platform, accelerate technology iteration, the core is computing power

Advantages: 1, there are 3.8 million cars running, you can accumulate experience;

2, electrolyte as an example, 500,000 + database, molecular library 3100 kinds, oxidation potential high 300, the core is 1000 magnitude of concurrent calculation, in order to produce new formulas of electrolyte,

3, chemical system, sodium battery, lithium / sodium technology battery, personal most optimistic rare metal battery,

4, the material system upgrade: M3P battery between lithium iron phosphate and ternary, to reach 5 series ternary, cheaper car, starting in 2023; SIB - sodium battery,

5, ternary: NCM /Gr NCM/sio, NCM/Gr sio, hec\hea, a new generation of high-nickel batteries, will decide the battery share in 2030, but 2030 battery technology - solid-state batteries, determine the 2040 battery share, this company is currently somewhat blind, need to further develop solid-state batteries, 2030, 500Wh/kg, 1000Wh/L. HEC/HEA, 2023-2028. 400~500Wh/kg。 HN-NCM/SiOx, 2021-2028. 300~350Wh/kg。 HN-NCM/SiO, 2021. 240~300Wh/kg。 NCM/Gr 200-250whkg

M3P

Lithium iron phosphate

SIB-sodium battery

M3P: improve low temperature, energy density is good, there is no precious metal, 10 projects fixed points, 30 projects in docking, verification down may be lithium ferromanganese phosphate 500wh products: lithium metal batteries, commercial aircraft, power density + fast charging + low temperature sales are very good, endurance of more than 1000km, long-life batteries: has reached 18,000 times, energy storage for 25 years, vehicles 3 million kilometers, now more than 2,000 energy storage systems around the world, has burned more than 200, really not everyone can do;

CTP: 210wh (the second generation), to do 250 (the third generation, the fourth generation), the next generation to do 260, into the CTP 4.0 version, than the 4680 system power increased by 13%, CTP lithium iron phosphate battery, to achieve 160wh, the volume to do 260wh / L,

System innovation: AB battery, lithium + sodium mixing and matching, ternary + iron and lithium mixing and matching, the company's BMS has made great innovations,

No heat diffusion: the first generation of heat-free diffusion protection technology, the second generation of intelligent fire protection technology in 2022, fire extinguishing and cooling, the third generation of fire technology in 2023, actively blocking a runaway battery, the fourth generation is still under development.

Flue gas control high-voltage direct hanging energy storage system: extreme manufacturing innovation - super pull wire: PPB, 100,000 cars - corresponding to PPM level, a battery 100 layers, 1 car about 100 batteries, about 10,000 failure points, 100,000 vehicles is one millionth, this is a small probability event

Q&A Session:

1. Is the company's low temperature performance worse than that of overseas LG and other companies?

In the past, the company's attitude was, what customers said, what they did, before they did not understand the actual needs of customers, such as winter tests, etc., but what is the actual problem, they actually have no right to speak, but now it is different, the company began to give suggestions to the downstream vehicle, how should it be, now some customers are very satisfied with their own low temperature, some are very dissatisfied with the low temperature (communication problems)

2. Considerations for building factories in the United States, etc.?

And the United States customer interaction is very much, the United States new forces, the company interaction is very much, the United States traditional car factories, there are many factories in China, so the United States car factory closely discuss with themselves how to avoid political issues, OEM many also oppose the battery in the United States, American workers on the battery manufacturing training is very inadequate, in addition to the union, cost, safety and a lot of problems, such as Mexico, Canada and other factories, then the discussion is very in-depth, currently still hope to export from China to the United States, the current tariff is about 10%, Also betting on how long Biden can persist, how to judge all decoupling, completely move the Chinese manufacturing system to the United States, the South Korean factory has suffered a big loss, the American OEM factory is very worried about this, the American market, the Ningde era must go in;

3. Supply chain problems?

Resource layout problems, has been doing, from last year began to invest more than 10 billion, including Pilbara, South America, North America, long orders, agreement prices, etc., in addition to Yichun, Sichuan resource companies, etc., this piece of the back 80% may be guaranteed, will not be stuck in the neck, will learn the central method, engage in a strategic inventory, to iron out price fluctuations, lithium recovery of more than 90%, 2022 lithium recovery is about 20,000 tons, nickel, cobalt is really needed layout, the current layout, lithium is actually not lacking What Ganzi, Aba and other places have other materials due to environmental protection problems, are short-term, in fact, there is no own layout,

4. Strategic intent?

Rent batteries, the company may not be pure manufacturing, may be high-end service industry, behind but also to do photovoltaics, etc., perovskite batteries, etc., the company's computing power is very strong, the company is an innovative technology company, this aspect will be dry

5. Big data processing + closed-loop capability

Data backhaul, the need for OEM consent, energy + temperature + performance attenuation, etc., through the wireless transmission back; but some do not agree, but the general operation of vehicles + ore, etc. these can generally be recycled, in addition to foreign data can not be transmitted back, European data, can only conduct European data centers; battery production process 100% domestic technology, but the equipment, there may be a small number of sensors + BMS A small number of chips are from the United States, this piece is also done localization, the company's 28nm chip is enough, At present, the amount is not enough, there is no particular urgency and chip factory package capacity, reliability is very important, supply advanced is not important;

6. CTC promotes customer resistance?

Different customers, the attitude is not the same, some customers have to do anything, especially the traditional car factory chassis + battery, may be their own competitiveness, but the new OEM is more concerned about the entertainment system + automatic driving, do the Internet part, so that the battery + motor + electronic control are handed over to others In addition, the project itself comes from the national project, its own competitiveness, especially the energy consumption competitiveness is not enough, the Ministry of Industry and Information Technology leaders found them, the company feedback this piece needs to be integrated, so that the Ministry of Industry and Information Technology let the company take the lead in doing integration, 5 years -8 years, The battery production line is gone, how to do the entire technical service, is a relatively big problem, the whole vehicle should play its own ability in its core competitiveness, such as Tesla did not do batteries in the early days

7. Drying problem?

Design the parameters of the drying according to the requirements,

8. What are your biggest concerns?

International relations are also, ready to do the international cycle, but behind is their own ability, such as experimenting in Germany, Chinese translated into German, the whole system will not be a problem, the whole does not know,

9. How to see friends?

If it is copied, it does not pose a challenge to the company's competitiveness, and the continuous influx of competitors is not really worthy of attention, and there will be no threat, such as a company (guessing that it may be Fu Neng) at that time to strive for a good fixed point, the result can not be done, and now this European OEM promises that the next 10 years will be fixed to Ningde, so as to exchange for ningde to supply him with batteries, an OEM factory, pinning his transformation fate on an unstable supply chain, strategically inappropriate;

10. What is the impact of the price increase or fall of some materials on the battery?

11, a few years after the profit judgment of the battery? The core is still to see the technological progress, into the TWH, a line is 10-20Gwh, the profit is still very good

12. Are there still some materials to be stored?

The core is still to see people, some people are long-term partners, good times, poor times to bear together, if the teacher pursues short-term interests, the company will do strategic inventory,

13. How to respond to changes in U.S. energy storage policy?

Customers hope to go to the United States to do batteries, but no customer has such a large amount, the company's requirements are 50Gwh to start, the company intends to do a joint venture with the OEM first, using this joint venture to do energy storage batteries;

14. New technology?

Sodium battery production capacity and other planning have landed, mass production is the beginning of 2023, will invite existing partners to expand production together, the company will be the existing own technology authorized to suppliers, let them expand production, the company charges a certain technical licensing fee,

15. Phosphoric acid batteries, etc. reduce the technical barriers of the battery, will it lead to the company's advantages weakening?

Indeed, the company has some advantages that can not be played out, therefore, the company's business model, but also to play some advantages, such as doing some high-end services and including home storage, the company this piece of sodium battery, but also the company can also find new technical highlands, such as the battery of the space shuttle,

16. U.S. Sanctions?

The company has recently denied, the New York Times is engaged in Biden, the company asked the OEM, the OEM asked the Ministry of Commerce, the answer is the best to put in the United States production, hope to invest in the end of Detroit and other places, but Ningde does not agree

17. Why are more technologies shown?

Now electric vehicles, do not need to be so cheap, but also a good promotion, last year the cost is more need to be controlled, the whole vehicle complains a lot;

18. Is M3P a lithium manganese phosphate battery?

In the future, the mainstream 80,000-120,000 battery materials and solution system? Chocolate battery technology for this, such as Pentium this, battery take away, is 70,000 pieces, battery rental costs equivalent to oil costs, this is a way, is an ultimate solution; M3P: not lithium ferromanganese phosphate to be precise, but it is also possible, because there are other metals, the original text ---- inferred that it should be an improved variety of lithium ferromanganese phosphate 19, export logistics providers choose? A worldwide selection,

20. Recycling?

Ternary recycling started relatively early, because the value of cobalt is high, now lithium iron phosphate also has a recovery value, lithium carbonate recovery cost in 40,000, as long as the price of lithium carbonate exceeds 40,000, there is a recovery value, the current lithium iron phosphate recovery of 10,000 tons, anode graphite, the company is also planning to recycle, diaphragm, electrolyte, etc., is no way to recover,

21. Did you walk from behind the scenes to the front of the stage?

Or do you start with the power exchange, gradually let everyone realize that their products are better, and market awareness needs a process 22, long-term global market share consideration? What is the relationship with the company's R&D technology? Market share, is a process of continuous efforts, the company's perfect technical solutions, should be able to improve the high market share of 23, lithium carbonate cost conduction? Short-term company batteries also increased the price, this cycle of 1.5-2 years, should be basically solved, when the time will be shuffled, PET copper foil instead of copper foil, reduce 50% copper foil, the original supplier to do, do not do well, the company now do it themselves, and then guide suppliers to develop,