The dispute over the technical route of power lithium battery is in trouble again

Watermart used to be the leader of lithium iron phosphate power batteries in the past. The focus on lithium iron phosphate has made Watermart the forefront of the industry in terms of technology. Watermar fell into a cash flow dilemma and was haunted.

Recently, Waterma's parent company, Jianrui Woneng, announced that it will introduce its partner Jiangsu Huakong Investment Management Co., Ltd. to revitalize Hunan Waterma, a subsidiary of Waterma, and help it resume production. However, Jiangsu Huakong's entry does not focus on the application of lithium iron phosphate as a power battery, but hopes that Hunan Waterma's production capacity will gain in the energy storage market.

Due to the low energy density of lithium iron phosphate batteries, the technical route dispute between lithium iron phosphate and ternary materials has never stopped. Does the shift in investors' views on lithium iron phosphate mean that lithium iron phosphate has lost its power battery? In fact, the reporter noticed that with the approaching of new energy vehicle subsidies, some securities companies have begun to be optimistic about the investment in lithium iron phosphate prospect.

Waterma back to life?

JR Woneng, which is deeply in crisis, has ushered in a ray of light. JR Woneng recently announced that in order to help Hunan Waterma, a subsidiary of its wholly-owned subsidiary Waterma, resume production, the company signed the "Investment Cooperation Framework" with Jiangsu Huakong. Agreement", intending to jointly initiate the establishment of a joint venture company. Affected by this news, the stock price of Jianrui Woneng rose by the limit on April 19.

Judging from the agreement, Jianrui Woneng and Jiangsu Huakong intend to jointly invest in the establishment of Hunan Anding New Energy Co., Ltd. (hereinafter referred to as Anding New Energy). The registered capital of the joint venture company is 200 million yuan. The three parties intend to subscribe for a capital contribution of 110 million yuan, accounting for 55% of the registered capital, and Jiangsu Huakong or a third party under its control intends to subscribe for a capital contribution of 90 million yuan, accounting for 45% of the registered capital.

The action of establishing a joint venture company is regarded as a self-help act of JRW. Since Watermart, JRW has repeatedly saved itself. In February last year, JRWoneng disclosed the issue of shares with Jiayi Precision to pay for cash purchases. The framework agreement for assets and the framework agreement for cooperation with AlturaMining Limited. However, in the end, these two framework agreements were also terminated due to the termination of the planning of major asset reorganization by Jianruiwo.Also read:24V 200AH Lithium Battery

In addition, Jianrui Woneng also disclosed the partnership agreement of Shaanxi Litong No. 1 New Energy Partnership (Limited Partnership) in October last year, so as to introduce strategic investors. At present, the partnership enterprise has gone through industrial and commercial registration procedures and has been granted a business license, and the partner capital has reached 23.5 million yuan.

Of course, the signing of the framework agreement is only the first step. After that, JR Woneng and Jiangsu Huakong will also jointly discuss matters related to investment cooperation with the local government. On the premise of obtaining the approval and consent of the government, the two parties will sign a formal investment cooperation Agreement, and after performing their respective approval procedures, quickly promote the implementation of company registration, capital implementation, plant and equipment and other related matters.

According to industry and commerce information, the shareholders of Jiangsu Huakong include Lu Zhongyi and Hua Jun, who hold 70% and 30% of the shares respectively. Lu Zhongyi is also the chairman of Jiangsu Huakong. Jiangsu Huakong raised and established a corporate RMB venture capital fund in Nanjing in July 2008——Jiangsu Huakong Venture Capital Co., Ltd., with a registered capital of 200 million yuan.

Lu Zhongyi said in an interview with a reporter from e Company that the cooperation between the two parties will be carried out in the form of cash contribution to ensure the normal production and operation of the joint venture company. He told reporters that the joint venture company will still use Hunan Watermart's existing plant and equipment for production, but the joint venture company is a clean new company and will not be involved in Watermart's disputes.

Jianrui Woneng disclosed in the announcement that Jiangsu Huakong and many well-known investment institutions at home and abroad are strategic partnerships with each other, and the company's strength and operational capabilities are outstanding. Lu Zhongyi told reporters that Jiangsu Huakong had also invested in new energy and lithium battery related projects before.Recommended reading:RV Lithium Battery

Judging from the stock price, the market has already responded to Jianrui Woneng's self-help behavior. Jianrui Woneng said that due to the large-scale anticipation of Watermart, the production and operation have been seriously affected, and the orders in hand cannot be executed normally. Although the company is actively self-rescuing, but at the Watermart level, the progress of related rescue work is relatively slow, and the establishment of a joint venture The company helps the company resume production.

The battle over the power battery route is back

"If we put it a year ago, we would not have paid attention to the direction of lithium iron phosphate, because its energy density is relatively low, and it cannot compete with ternary batteries when used as a power battery." Lu Zhongyi told reporters that the cooperation with Watermart is Due to the explosion of lithium iron phosphate batteries in the energy storage market, "the cost of lithium iron phosphate is relatively low, and the business model for energy storage is feasible."

Lu Zhongyi told reporters, "We predict that lithium iron phosphate will be widely used in energy storage. If it is used for energy storage, a 40-inch standard container can hold about 2MWh of lithium iron phosphate batteries. This does not require much space. not tall."

From this point of view, will the application of lithium iron phosphate in power batteries really decline? The technical route of power batteries has a long history. In small vehicles such as passenger cars, lithium iron phosphate has little competitive advantage. For large vehicles such as buses and logistics vehicles, although the requirements for battery volume and quality have been relaxed, industry awareness is also worried that the growth space of this market is limited.

However, the reporter noticed that the market has recently begun to be optimistic about the application of lithium iron phosphate in the field of power batteries. Pure electric models will switch to lithium iron phosphate batteries, and the recovery of lithium iron phosphate is imminent.

Specifically, the energy density of the current lithium iron phosphate battery system can reach 140Wh/Kg, and the cost is 10%-15% cheaper than that of the ternary battery. Low-end models can save 0.3-0.6 yuan in cost by replacing the lithium iron phosphate battery. Recently, two models of BAIC New Energy EC220 standard version and JAC iEV7L have adopted lithium iron phosphate batteries. In addition, the 2019 facelift of two plug-in hybrid models will also use lithium iron phosphate.

Orient Securities previously estimated that the installed capacity of lithium iron phosphate batteries this year will be 24.24GWh. This figure is obtained because lithium iron phosphate accounts for 5% of passenger cars; however, considering that some passenger car batteries have shifted from ternary to phosphoric acid Lithium iron, this change will drive the installed capacity of lithium iron phosphate batteries to increase by 13.26GWh. On the whole, the installed capacity of lithium iron phosphate batteries this year will increase by 73.85% year-on-year.

However, according to the data of Zhenzhen Research, in the first quarter of this year, the total installed capacity of power batteries reached 12.57GWh, a year-on-year increase of 180%, of which the installed capacity of lithium iron phosphate batteries was 2.94GWh, accounting for 23.34%. Compared with the same period last year, although the installed capacity of lithium iron phosphate batteries increased by 125%, the market share dropped by 6 percentage points.

From the perspective of market share, in the first quarter of this year, there was no sign of recovery of lithium iron phosphate batteries. What is the reason? Orient Securities believes that the supporting advantages of lithium iron phosphate batteries in passenger cars need to wait until new energy vehicles It will only be reflected after the end of the transitional period of the refund. At that time, as more models replace lithium iron phosphate batteries and go on the market, the proportion of installed capacity will increase.

Look at the ternary battery again. In the first batch of promotion catalogs for new energy vehicles in 2019, the energy density of Ningde era’s ternary batteries reached a new high, reaching 182.44Wh/Kg. In the existing 13 batches of promotion catalogs, phosphoric acid The highest energy density of iron-lithium battery is 153.59Wh/Kg, the former is nearly 20% higher than the latter.

The reporter learned that in the recent batches of new energy vehicle promotion catalogs, the signs of ternary batteries and lithium iron phosphate batteries dividing up the market segment have become increasingly clear, among which ternary batteries with higher energy density further cover the higher demand for battery life The passenger car market, while the lithium iron phosphate battery with low energy density covers the passenger car market and some special models with high safety and cost requirements.

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