The government's subsidy policy for new energy vehicles is having a significant impact on the entire supply chain of the industry, especially on key suppliers like power battery manufacturers. As the subsidies are gradually reduced and eventually phased out by 2020, companies in the sector are under increasing pressure to adapt and innovate.
In 2018, the Chinese government issued a new policy titled "Circular on Adjusting and Perfecting the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles." This marked a shift from simply subsidizing based on vehicle range to introducing stricter technical requirements, such as battery energy density and energy consumption efficiency. This means that not only is the subsidy amount being lowered, but the standards for qualifying for it have also become more demanding.
For power battery companies, this means two main challenges: first, they must continue to invest in R&D to improve battery technology and meet higher performance standards; second, they need to reduce production costs and enhance cost-effectiveness to remain competitive. These efforts are crucial for avoiding technological "hollowing" and ensuring long-term growth in the new energy vehicle market.
One of the biggest hurdles for new energy car companies is the high cost of batteries, which account for up to 50% of the total vehicle price. Even with subsidies, electric vehicles are still more expensive than traditional fuel vehicles. To truly expand the market, the cost of new energy vehicles must be brought closer to that of conventional cars.
To address these challenges, companies like Xingheng are focusing on both product innovation and manufacturing optimization. For example, Xingheng's 26148 series batteries use a manganese-based cathode material system that offers better safety, longer cycle life, and improved energy density. The company has also invested heavily in building an advanced production line that enhances efficiency, reduces waste, and lowers overall costs.
The 26148 production line incorporates several innovative processes, such as a specialized slurry premixing method that improves material consistency and reduces energy consumption by 30%. Additionally, the aluminum shell and lamination process ensures better internal space utilization and lower internal resistance. These improvements help cut raw material costs while maintaining high-quality standards.
Xingheng has also made breakthroughs in automation and high-speed manufacturing. Their high-speed continuous coating process increases efficiency and reduces energy usage, while their cost-effective chemical conversion and baking techniques further enhance cost savings without compromising quality.
Through these strategies, Xingheng demonstrates that improving the cost-performance ratio of power batteries requires a combination of product innovation, advanced manufacturing, and operational efficiency. As the subsidy landscape continues to evolve, companies that can adapt and optimize will play a key role in shaping the future of the new energy vehicle industry.
Comcn Electronics Limited , https://www.comencnspeaker.com