• Saturday, November 17, 2018

This Chinese Battery Plant Will Be Bigger Than the Tesla Gigafactory

Discussion in 'China & Far East' started by Shotgunner51, Jun 21, 2017.

  1. Shotgunner51

    Shotgunner51 INT'L MOD

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    This Chinese Battery Plant Will Be Bigger Than the Tesla Gigafactory
    It could even be the world's largest battery factory.
    By Mike Brown on June 1, 2017

    14945693971727qeanw-2jpg.jpeg

    When complete, Tesla’s Gigafactory (backed by Panasonic techs and investment) will produce batteries at a faster rate than bullets firing out of a machine gun. But that’s not as fast as what one factory plans in China. Contemporary Amperex Technology Ltd. (宁德时代新能源科技有限公司), CATL for short, is building a monster-sized factory on the edge of the southeastern city of Ningde. The Ningde plant could steal the crown from Tesla as the largest battery factory in the world.

    “It will not be easy to surpass Japanese and South Korean companies,” Neill Yang, CATL’s marketing director, told the Financial Times. “But we think over the next 10 years, there may only be 10 lithium battery producers left, with the top three taking 60 percent of the market.”

    The factory is expected to be huge. To put it into perspective, it’s worth considering the size of the Gigafactory. Elon Musk’s pride and joy, a 5.8-million square foot behemoth, will produce enough batteries every year to store 35 gigawatt-hours of electricity. One gigawatt-hour is enough energy to supply one billion watts for one hour. CATL’s factory produced five gigawatt-hours in 2016, but by 2020 it plans to reach an output of 50 gigawatt-hours.

    Overall, Benchmark Mineral Intelligence is tracking the construction of 15 Gigafactory-like plants, set to provide 230 gigawatt-hours of output, enough to power 3.5 million electric cars. The Ningde plant is by far the largest of the group.

    catls-plant-is-located-on-the-outskirts-of-the-city.png.jpg
    CATL's plant is located on the outskirts of the city.

    Valued at $11.5 billion, CATL is China’s fastest growing battery maker, and it’s poised to take advantage of a surge in demand as electric cars take over the roads. In 2016 alone, the factory tripled its production output, as the country pushed harder toward electric vehicles. The government offers heavy subsidies on electric vehicles: the two-door Chery eQ costs the equivalent of $23,000 before subsidies, but that drops to $8,600 after. The country is aiming for five million electric cars on the road by 2020, and ideas like the plan to remove all of Beijing’s gas-powered taxis will mean more demand over the next few years.

    The company employs over 1,000 engineers, but it’s aiming to add more to the team to reach its goals of meeting production targets. It’s one of three battery makers targeted by the country to meet production goals, with the government offering $15 million if it’s successful. But one production line costs $40 million, and even before its completion the Tesla Gigafactory has already surpassed $1 billion in construction costs.

    “We continue to walk where the country guides us,” CEO Huang Shilin told Reuters. “We hope by 2020 we can achieve performance and price that lead the world.”

    The company is focused on China’s market, but it’s also signed a deal with National Electric Vehicle Sweden, which owns the Saab automaker. Yang has also said CATL wants to work with Tesla in the future. If such a deal came to fruition, Tesla’s Gigafactory may not seem so giga after all.


    https://www.inverse.com/article/32133-chinese-battery-plant-tesla-gigafactory
     
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  2. Han Patriot

    Han Patriot SENIOR MEMBER

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    The thing about Tesla is this, for all the hype about its potential, it is still loss making and the core technology belongs to Panasonic. They are basically just a brand name like Apple.
     
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  3. Shotgunner51

    Shotgunner51 INT'L MOD

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    China Leading the Charge for Lithium-Ion Megafactories
    Jeff Desjardins
    on February 17, 2017 at 11:48 am

    Tesla’s Gigafactory 1 has been a center of attention for people interested in the growing momentum behind green energy, electric cars, and battery production. Therefore, it is no surprise that this facility was in the news again last month, with Tesla starting to mass produce batteries as it ramps up to its goal of 35GWh of capacity and beyond.


    However, as exciting as this project is, it’s actually just one of multiple large-scale “megafactories” being built – with many of them being in China.

    China Leading the Charge


    We talked to Simon Moores, Managing Director at Benchmark Mineral Intelligence, who explained that Tesla isn’t alone or unique in its ambitions to build lithium-ion batteries at scale:


    "While the Tesla Gigafactory is vitally important from an EV vertical integration perspective, the majority of new lithium-ion battery capacity is being built in China. Some of these plants are expected to be huge such as the CATL facility at 50GWh – there is little doubt that China’s lithium-ion industry has come of age."
    Contemporary Amperex Technology Ltd (CATL) has plans to build the largest lithium-ion megafactory of all – but the company is little known in North America. It’s already worth $11.5 billion, and could be a dominant force globally in the battery sector if it successfully increases its lithium-ion production capacity six-fold to 50GWh by the year 2020.

    Other Chinese manufacturers are on a similar trajectory. Panasonic (has invested Tesla's Gigafactory), LG Chem, and Boston Power (invested by China GSR venture; CEO Sonny Wu) are building new megafactory plants in China, while companies such as Samsung (SDI) and BYD are expanding existing ones. All lithium-ion plants in China currently have a capacity of 16.4GWh – but by 2020, they will combine for a total of 107.5GWh.

    lithium-ion-china-chart.jpg

    Capacity by Country

    This ramp up in China means that the country will have 62% of the world’s lithium-ion battery production capacity by 2020

    Untitled.png


    http://www.visualcapitalist.com/china-leading-charge-lithium-ion-megafactories/
     
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  4. Shotgunner51

    Shotgunner51 INT'L MOD

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    Boston-Power Aims to Rival Tesla With Gigawatt Battery Factories
    January 13, 2015

    Will the lithium-ion batterymaker be able to build its own Giga factories to power EVs?

    sonny-wu-620x372.jpg

    Late last December, lithium-ion battery builder Boston-Power announced that it had received $290 million in “financial support” from Chinese government agencies in order to scale its battery factories. The company’s CEO laid out a goal of “competing with Elon Musk” in the deployment of batteries for electric vehicles.

    We spoke with CEO Sonny Wu over the holidays. Wu was a managing director at GSR Ventures and chairman of Boston-Power before he took over the CEO post from founding CEO Christina Lampe-Onnerud in 2012.

    Considering the entire $290 million as a venture round (admittedly a stretch) would bring Boston-Power’s funding total to more than $600 million since it was founded in 2005. Recent investors have included GSR Ventures, Foundation Asset Management and Oak Investment Partners. Investors in earlier rounds included Venrock, GGV Capital and Gabriel Venture Partners.

    Boston-Power was founded and funded in the U.S. but has moved its manufacturing to China while keeping some R&D functions stateside. The firm currently has 50 employees in Boston and almost 500 in China.

    The company claims that this latest funding event allows Boston-Power to grow its Liyang facility fivefold by 2016 and expand its Tianjin facility capacity to 4 gigawatt-hours by 2017, aiming to reach 8 gigawatt-hours by 2018. Clearly, capex costs for a battery factory in China are cheaper than building a factory in Reno, Nevada.

    As we’ve reported, Boston-Power uses a lithium-cobalt chemistry, the same battery chemistry found in notebook cells. (The “cobalt” refers to materials used in the battery’s electrodes.) The company has claimed to have refined the casing, anode, cathode and other battery internals for longer life, more cycles, higher energy density and faster charge.

    The CEO is enthusiastic about the $35 billion Chinese EV market, with demand for “high-end lithium-ion batteries hitting 100 gigawatt-hours.” Wu suggests that China will see “significant battery supply constraints over the next three to five years, which we aim to address.”

    The battery business is fiercely competitive, with a number of large and long-established incumbents. Products from LG Chem, Panasonic and NEC are already designed into the Chevy Volt, the Tesla Model S, and the Nissan Leaf, respectively.

    Wu said, “Our battery is at 200 watt-hours per kilogram, with a longer cycle-life than [comparable products from] Tesla and Panasonic.”

    Here’s a guide to gravimetric energy density:
    • 117 watt-hours per kilogram: The level Tesla and Panasonic were achieving in 2008 for the Roadster
    • 200 watt-hours per kilogram: The level Sonny Wu, Boston-Power’s CEO, says the company is achieving today
    • 240 watt-hours per kilogram: The approximate energy density of the batteries in the Tesla S
    • 400 watt-hours per kilogram: According to Tesla’s Elon Musk, the concept of battery-powered transcontinental airplanes becomes “compelling” once batteries hit 400 watt-hours per kilogram (as per this interview)
    • 400 watt-hours per kilogram: The level that battery aspirant and ARPA-E grant recipient Envia claimed it could achieve (disingenuously, it turned out)
    • ~12,000 watt-hours per kilogram: The energy density of gasoline
    So Boston-Power’s batteries are designed for Chinese automakers — but don’t think that the competition is the Tesla S; it’s more like the Tata Nano.

    And the difference between Boston-Power’s approach and the market entry strategy of Tesla is aimed squarely at solving the “Chindia problem,” a term coined by prolific investor Vinod Khosla, who suggests that energy solutions must work in China and India if they are to have any material global impact.

    Prius hybrids? Not a solution to the climate or energy problem, according to Khosla. Better to take that money and paint your roof white to improve Earth’s albedo. And they certainly don’t meet the Chindia test. In order to do so, they would have to compete with the $2,500 Tata Nano, according to the VC.

    Boston-Power is partnering with Chinese auto manufacturers to produce four-seater electric cars with an 80-mile to 120-mile range from a small 13-kilowatt-hour battery pack at a total cost of about $8,000. That price point seems more aligned with providing a cheap functional vehicle to a growing middle class than a $100,000 sedan or a $40,000 family car.

    Wu was in China recently and reports that the company and its partners sold 205 cars in a single day in one city. Boston Power’s automotive partners include ZD (Zhidou). Wu said, “We are a battery company enabling our customer — we co-market.” Boston-Power builds a specific battery pack for each vehicle model, including the battery management system.

    The CEO says that markets are being driven by some of the 130 million electric scooter owners in China who are now beginning to upgrade to EVs for local commutes and for the convenience of a car that can plug into any AC outlet.

    In this type of business in China, it’s not just the technology but the levers of power that need to be engineered in order to proceed. Our understanding from a number of sources is that Boston-Power has some of the necessary banking and regional connections to execute on a project of this scale. Of course, Chinese consumers have to cooperate by buying millions of EVs.

    The CEO said, “The market for EVs is very exciting given the backdrop of Tesla — but Tesla, that’s just the beginning.”

    http://www.theenergycollective.com/...r-aims-rival-tesla-gigawatt-battery-factories
     
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  5. cirr

    cirr ELITE MEMBER

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    CATL, a unicorn valued at 120 billion yuan before possible public floatation in the next couple of years. :enjoy:
     
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  6. AndrewJin

    AndrewJin ELITE MEMBER

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    Where is Supa powans?
    I've heard they are the number one back in 2012
     
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  7. Shotgunner51

    Shotgunner51 INT'L MOD

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    Yes their EV tech is from Panasonic, and car-making tech from Toyota who sold them a used production site. Tesla is backed by world's #1 and #3 largest patent powerhouses.


    Well these don't make them any less genius in marketing, in creating a brand that sells. They may not be profitable yet, but like Apple, Tesla is a another good case study for traditionally tech-centric Chinese industries to learn about marketing.
     
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  8. Han Patriot

    Han Patriot SENIOR MEMBER

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    I have to agree...what Chinese lack now is sophisticated branding and marketing.
     
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  9. Tom99

    Tom99 FULL MEMBER

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    Panasonic Market Cap. -> 31.5B
    Tesla Market Cap. -> 62.24B
    Apple Market Cap. ->753.63B

    Yeah, Apple and Tesla is just a brand name, nothing more. /s

    Tesla , like Amazon, is expanding and investing money back into itself. Every company, if they can, wants to sell their product at a premium. Tesla and Apple have a brand name so they make tons of profit with their products, while all other nameless bottom feeding company can't.
     
  10. Han Patriot

    Han Patriot SENIOR MEMBER

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    It has more to do with the skewed share market system. America can print dollars and whatever valuation is based on their share price. Does Tesla actually produce services and goods worth those billions is a different story. It's all based on hype. The largest manipulator on earth is the United States of America.
     
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  11. TaiShang

    TaiShang ELITE MEMBER

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    US media is in it to promote the hype. Take the media out (which paints the company under very positive light in endless repeated coverages), they are just assembly plants.

    If corporate China wants a similar positive exposure, they need to cooperate with China media to ensure endless positive coverage and hype.

    China media is still too independent from private business interests, which may not always be a good thing.
     
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  12. Han Patriot

    Han Patriot SENIOR MEMBER

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    The good thing about China is we have a big internal market, we just need to learn how to up the hype, inflate the sharemarket, and wallah you have huge companies with crazy market capitalization, even for loss making companies. We need RMB to be at least on par with EURO, then we can really have huge financing aka money printing power.
     
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  13. Han Patriot

    Han Patriot SENIOR MEMBER

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    BYD buses started the elctric bus revolution thanks to the Iron Phosphate batteries.
     
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  14. Shotgunner51

    Shotgunner51 INT'L MOD

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    Interesting comparison, take a look at market cap of world's top 10 auto & truck conglomerates (Fortune 2000, end 2016):
    1. Toyota Group (Toyota Motor, Denso, Toyota Industries, Aisin Seiki, Toyota Boshoku), $242.6 B
    2. Volkswagen-Porsche Group (Volkswagen AG, Porsche Automobil) $89.7 B
    3. Nissan-Renault Group (Nissan Motor, Renault, Valeo, JKEKT) $88.5 B
    4. Daimler, $75.4 B
    5. Hyundai-Kia Group (Hyundai Motor, Kia Motor, Hyundai Mobis) $67.4 B
    6. BMW Group, $60.4 B
    7. Ford Motor, $54.2 B
    8. Honda Motor, $51.1 B
    9. General Motors, $49.6 B
    10. SAIC, $34.4 B
    If Tesla is categorized as auto and truck company, it's world's 6th largest, and 1st largest in US. It's impressive given many of Tesla's peers are decades old (even century old) traditional R&D industrial powerhouses with massive IP reserves.
     
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  15. AndrewJin

    AndrewJin ELITE MEMBER

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    Tens of thousands of electric buses will be purchased in China alone during the next decade.

    13.jpg
     
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