[YesAuto News] Not only will the power battery business be split, it will also be listed independently in the future. Recently, Shen Xi, deputy general manager of BYD's lithium battery business unit, said when attending the event that BYD is doing the divestiture of the power battery business, and it is expected that the split will be completed by the end of 2018 or early 2019. From 2022 to 2023, BYD's power battery company will be listed independently. By the end of 2017, BYD’s power battery production capacity could reach 16GWh. According to the plan, this value will reach 29 GWh, 34 GWh, and 39 GWh from 2018 to 2020.
Due to closed operation and other reasons, BYD's advantage in power batteries has gradually been overtaken in recent years. Data show that in 2017, the total installed power of new energy vehicles (EV+PHEV) power batteries in my country was about 36.24GWh, which was an increase of about 29.4% compared with the data of 28GWh in 2016. Among them, CATL's 10.4GWh installed capacity accounted for about 30% of the total, followed by BYD with 5.43Gwh, accounting for about 15%. In 2016, BYD also accounted for 7.4Gwh, accounting for 26% of the total, surpassing the 6.7Gwh of the Ningde era, maintaining the first position in domestic shipments.
In order to regain its advantages, BYD announced as early as May last year that with the continuous expansion of battery production capacity, the company decided to formally split the power battery business with core technology for external supply, and cooperated with major automobile OEMs such as Great Wall, BAIC, and GAC. For docking, it is expected that some batteries will be sold as soon as 2018.
For a long time, BYD has been the main advocate of the lithium iron phosphate battery technology route. However, as the energy density requirements of power batteries increase, the new energy passenger car market is tilted towards ternary lithium batteries, and power battery companies have to deepen their focus in the ternary field. As early as around 2015, BYD began the research and development and production of ternary power batteries and gradually applied them to its own Tang 100 and Qin 100 models. On October 24, 2017, BYD released a record of investor relations activities and pointed out that all of the company’s PHEV passenger vehicles have used ternary batteries. In the future, the company plans to continue to use lithium iron phosphate batteries in the public transportation sector. Other new models will use ternary batteries.
BYD's separation of battery business can reduce the risk of its own battery companies on the one hand, and will greatly help the improvement of future battery product utilization and comprehensive capabilities; on the other hand, BYD batteries have strong competitiveness, which may lead to changes in the power battery market structure. , To promote industry reform and development.
But from another perspective, although the battery business operates independently, BYD Auto has absolute control. Will this cause other car companies, especially competing car companies, to worry about battery selection? It is necessary for BYD to plan to differentiate the battery and vehicle product markets.
Of course, after the separation of BYD's electronics business, it may also cooperate with other automakers in the form of strategic cooperation to fully develop its own business. Historically, Delphi, a well-known component company today, was also spun off from General Motors. This mainly depends on how the enterprise itself manages and develops in a balanced manner.