Power battery prices fell by 60% in five years, an

The price of power battery has dropped by 60% in five years, and enterprises still have room to reduce the cost

with the introduction of the subsidy decline policy, many power battery enterprises have been asked to reduce the price by vehicle enterprises. Recently, the daily economy combed the investor relations record sheet and the third quarterly report of lithium battery listed companies and found that since this year, the product prices of mainstream power battery enterprises have generally decreased by 20% - 30% compared with last year. On October 28, Zheng Lixin, spokesman of the Ministry of industry and information technology, said that China has become the world's largest power battery producer, and the competitiveness of enterprises is also greatly enhanced. Compared with 2012, the energy density of power battery cells has increased by 1.7 times, and the price has decreased by 60%

however, on the one hand, there is the rise in the prices of raw materials in the upstream areas of materials, including nickel, cobalt, copper and lithium carbonate, and on the other hand, car enterprises hope to reduce costs due to the subsidy decline policy. Nearly half of the costs of new energy vehicles come from power batteries, which are squeezed up and down. How can power battery enterprises deal with it? Where will the power battery industry go in the future? The price of power battery has dropped by 60% in five years, and enterprises still have room to reduce the cost

the cost decline is slower than the price decline

"this year, the price of our products has fallen by more than 25%, and we have also taken many cost reduction measures to deal with the internal technology, equipment and scale; and actively negotiate with the upstream raw material suppliers externally." Recently, the person in charge of a power battery enterprise in Jiangsu talked about industry changes with the daily economy. However, he admitted that the decline in battery prices did not come from the decline in the price of upstream raw materials. On the contrary, affected by the rise in the price of upstream cobalt, lithium and other raw materials, the cost of enterprises increased by at least 15% this year

on October 31, Chengfei integration (002190, SZ) released its third quarterly report. From January to September this year, the company achieved an operating revenue of about 1 billion yuan, a year-on-year decrease of 21.19%, and a net profit of 608400 yuan, a year-on-year decrease of 99.32%. The company expects the net profit in 2017 to be - 19 million yuan - 5 million yuan

Chengfei integration said that in 2017, due to the composition of bus fatigue testing machine and the basic management in normal use, the overall market of the company rebounded slowly due to the influence of subsidy policies since the beginning of the year. In addition, the cultivation cycle of passenger car customers is long. At present, major customers are still in the process of cultivation, resulting in insufficient orders this year. At the same time, the market price of lithium battery products was greatly affected by the subsidy policy and the increase of the company's R & D investment. Due to the influence of many factors, the company's performance fell sharply year-on-year this year

"this year, the price of products has fallen by more than 20%, or even higher. We have taken many measures, but in general, the decline of costs is not as fast as that of product prices, so it affects the gross profit margin." Chengfei integration related person expressed this

coincidentally, on October 26, GuoXuan high tech (002074, SZ) released its third quarter report, saying that from January to September this year, it realized an operating revenue of 3.755 billion yuan, a year-on-year increase of 9.7%; The net profit attributable to shareholders of listed companies was 640 million yuan, a year-on-year decrease of 13.27%. At the same time, the net profit this year is expected to be 1 billion yuan - 1.116 billion yuan, with a change range of - 2.81% - 8.25%. GuoXuan high tech said that in 2017, the price of domestic power batteries generally decreased and the price of upstream materials increased, affecting the overall profitability

it is precisely because the cost decline is not as fast as the product price decline. Although jianruivoneng (300116, SZ) achieved a significant increase in net profit in the first half of this year and the first three quarters, it also admitted that its gross profit margin fell. Previously, in the investigation of institutional investors, Li Jun, Secretary of jianruivoneng, said that last year, the gross profit margin of the company was 39% and the net profit margin was 10%. In the first half of this year, the price of upstream raw materials increased, and the company's products fell by 10 cents per watt hour. Therefore, in the first half of this year, the company's gross profit margin decreased to about 32%, and the net profit margin also decreased. It is expected that the annual gross profit margin will remain at about 32%

according to the list of top 20 domestic power battery installed capacity enterprises in the first three quarters of this year released by true lithium research, BYD, GuoXuan high tech, watmar, Jiangsu Zhihang, Tianjin shares, CITIC Guoan, Tianfeng power and Yiwei lithium energy are listed companies (subsidiaries) or enterprises listed on the new third board

according to the statistics of the daily economy, among the above 8 enterprises that can see financial data, the gross profit margin of power battery business of GuoXuan high tech, watmar, Tianjin Co., Ltd., CITIC Guoan and Tianfeng power supply decreased in the first half of this year. Among them, GuoXuan high tech decreased by 12.43%, Tianfeng power supply decreased by 11.78% and CITIC Guoan decreased by 9.59%

apart from the above-mentioned top 20 list, only from the perspective of the new third board, there were 13 listed enterprises producing new energy vehicle power batteries, including Tianjin shares, sol technology, hasty, Tianfeng power supply, xinlingjia, wina power supply, Dingneng Kaiyuan, Houneng shares, huitongtianxia, Zhuo Neng shares, oppenbach, Xinghai energy and Shanmu Xinneng, of which 8 also experienced a decline in gross profit margin in the first half of the year

Moke, chief analyst of truth research, said that from the perspective of discourse power, vehicle enterprises and resource enterprises are the most powerful, followed by battery factories. Battery factories have indeed been squeezed up and down this year, and the gross profit margin is declining as a whole. However, in Wu Hui's view, the gross profit of battery enterprises was generally raised last year, while the battery belongs to the manufacturing industry, and the current profit level is normal

is there room for cost reduction of power battery

according to the data, the price of power battery has experienced a sharp decline in the past 10 years. The leading battery price in Japan and South Korea has decreased from $600 - $800/kwh in 2010 to $150 - $200/kWh at present. The leading domestic manufacturers have also decreased to about $300/kWh at the end of 2016, and now it has entered $200 - $250/kWh

in the view of insiders, the price of upstream materials has soared, and the downstream auto enterprises have strong demands for price reduction. The survival situation of power battery enterprises, especially small and medium-sized enterprises, will become more and more difficult

the aforementioned person in charge of a power battery enterprise in Jiangsu said that more than 100 billion yuan has been invested in the lithium battery industry since 2015. At present, the consensus of the industry is that there is indeed overheating and overcapacity in the industry, but this excess is also a relative surplus. Cars have high requirements for the safety and reliability of power batteries, and car manufacturers will be very cautious in selecting battery suppliers. Small battery enterprises will withdraw slowly without continuous investment and sustainable development ability. There has been a new trend in the market this year, with many mergers and acquisitions, and some small enterprises with relatively weak technical strength are withdrawing

"the price of battery products has indeed decreased significantly. On the one hand, the enterprise hopes to negotiate with upstream suppliers to reduce the price and prolong the period of regular replacement of oil suction filter and filter element; on the other hand, it can only be digested from internal control such as product design to further expand the scale effect by changing the internal structure of the spring (changing the size of the center hole, etc.) The official said

Wu Hui believes that although the battery price has decreased significantly, it does not mean that the space for cost reduction has been compressed. In his opinion, the biggest space lies in the improvement of battery energy density brought by technological progress. If the energy density is doubled, it is equivalent to the reduction of battery cost by nearly half. "There is also the scale effect, including the reduction of downstream models, the increase in the number of individual models, the increase in the output of battery enterprises themselves, and so on." Wu Hui pointed out

at present, the decline of subsidies urges the whole industry chain to reduce costs. As the core power battery of new energy vehicles, it bears the brunt. The market is still worried about the decline of power battery price and sales volume

however, reducing the cost of power battery is not an overnight thing

according to the report of industrial securities, there are three ways to reduce the cost of power battery: 1. Improve the process and reduce the material cost; 2. Expand the scale effect, improve the yield and reduce the production cost; 3. Echelon utilization and modular design reduce the life cycle cost. There are two other ways to improve the specific energy: one is physical method, which adopts high-capacity cell to improve the efficiency of pack group; The second is chemical method, using high nickel cathode material and silicon carbon cathode

Zhou Jianzhong, vice president of Tianneng group, previously revealed in an interview with CCTV: on the one hand, Tianneng digested through internal control and controlled the cost at about 8%, greatly offsetting the pressure of rising raw material prices; On the other hand, Tianneng increased the specific energy of the original battery capacity from 200wh/kg to 260wh/kg by introducing new materials and lightweight, thus greatly reducing the manufacturing cost

people close to Waterma also pointed out to that the cost of group batteries is about 1.3 yuan/wh at present. In the future, it is planned to reduce the cost by another 20% - 30% through increasing energy density and large-scale production. Previously, the industry had estimated that the price of batteries would be less than 1 yuan/wh by 2020