Tesla "Single Pick" Battery Giant: Strong Buyer'S Super Ambition

After the Shanghai plant was put into operation, Tesla's power battery supply chain finally began to embrace other enterprises.

At the investor conference held in January this year, Tesla CEO, Elon Musk, publicly confirmed for the first time that two new suppliers of Ningde era and LG chemistry were added. So far, the top three of the world's top three power battery enterprises have entered the Tesla supply chain, and waiting for them will be more intense negotiations and negotiations than ever before.

LG chemistry and Ningde era are Tesla long term "scandal" object. As early as 2017, when Model 3 was put into operation, both sides of Tesla and LG chemistry met in South Korea. In 2018, when the Shanghai factory landing agreement was signed, musk was also transferred to a low key meeting with Ningde times chairman Zeng Yu group.

Whether LG chemistry or Ningde era, with Tesla launched a long time of the saw, media reports said LG chemistry "in the past three years has been sent to Tesla test samples", Tesla "never abandon", and the Ningde era as the first domestic and even the world's power battery leader, also repeatedly threw the olive branch to Tesla.

But in fact, Tesla did not have a strong desire to find second suppliers. On the one hand, Matsushita has a clear leading edge in cylindrical batteries. On the other hand, the battery factories jointly built by the two sides still have room for release. Under such circumstances, it is obvious that it is not logical to make efforts to upgrade the capacity utilization rate of their own factories and switch to other suppliers.

However, with the completion of Tesla's Shanghai plant, the demand for nurturing local industry chains and reducing costs directly promoted Tesla's search for other suppliers, and the long-awaited LG chemistry finally waited for Tesla's favor. Good news is also coming from the Ningde era, which will officially supply Tesla.

Tesla did not disclose details of cooperation with LG chemistry and Ningde era, but musk said at the investor conference that the two cooperation will be "small scale". The analysis maintains that this not only safeguards the relationship with Matsushita, but also gives Tesla its own allocation of space.

In the short term, Panasonic will obviously remain the main supplier of Tesla, and the LG chemistry and Ningde era for Tesla's products and solutions will naturally maximize their research value. In the future, more frequent competition will be launched between them.

For Tesla, further cost reduction is the fundamental goal. This is also a different place for Tesla and other car companies. One is the strong pursuit of suppliers, the other is their ultimate frugality. Tesla will explore a more surprising cost system under the multi supplier structure.

"Strong buyer" Tesla

In February 3rd, the Ningde era issued a notice on cooperation with Tesla on the stock exchange. Although it did not disclose the specific targets and the amount of the agreement, it was enough to excet the market.

About a year ago, a similar announcement was made in the Ningde era, but not with Tesla.

As the top companies in their respective industries, Tesla and Ningde cooperation seem to match each other. Since Tesla decided to build factories in China, both sides have been concerned about the progress of bilateral cooperation both inside and outside the industry, but unfortunately, they have not reached a substantive agreement.

In the Ningde era, the domestic power battery enterprise "one brother", in 2019 the battery shipped the world ranked first. In recent years, with the rapid development of electric vehicles, the demand for power batteries in the industry has increased dramatically, and the Ningde era has also become hot.

In order to "seize" the capacity of the Ningde era and ensure the supply of batteries, many domestic car companies such as SAIC Group and Guangzhou Automobile Group have jointly built factories with the Ningde era. Compared with many car companies, the Ningde era also has a "halo" in the capital market.

But in the negotiations with Tesla, this halo seems to have gone half. Even in the establishment of a factory in China, Tesla is not in a hurry to cooperate with the Ningde era. Rather, it has left a little room for cooperation in the Ningde era on the basis of maintaining cooperation with Matsushita.

The Ningde era did not disclose the specific scale of cooperation, but according to Musk's statement, it was "small-scale". In the announcement, the Ningde era is not so "sure". It emphasizes that Tesla has no responsibility and obligation to buy the company's products, and does not guarantee the volume of products purchase. Tesla will make purchases according to subsequent specific orders.

The automobile industry media commented that "the Ningde era is so humble that it is so different from its arrogance in front of other OEM mainframe factories in China". For the pursuit of Tesla and the "uneasiness" that followed, the Ningde era did not seem to be the same person.

Tesla's attitude towards battery suppliers is open, but in the past many years, other than Panasonic, other manufacturers are actually very difficult to penetrate. Taking LG chemistry as an example, Tesla has been negotiating with it for nearly two years, and only after the establishment of a factory in Shanghai has the same scale been adopted.

In fact, in early years, LG chemical had supplied the upgraded version of the battery for the Tesla sports car Roadster in small quantities. It has long been keen to become a long-term supplier of Tesla, but its technology on cylindrical batteries is slightly inferior to that of Matsushita.

In addition, Tesla and Matsushita are deeply tied. They set up a battery factory in Nevada to supply batteries for Tesla production vehicles.

When Model 3 was just put into production, Tesla was suffering from the slow climb of the above plant capacity and sought a way out. According to media reports, Tesla executives met with LG chemicals, Samsung SDI and other battery businesses in 2017, but failed to reach a cooperation intention. Tesla finally chose to spend time with Matsushita's "mutual love".

However, LG chemistry has not forgotten Tesla. LG chemical advantage in soft battery, but for many years they have not abandoned the research of cylindrical battery. In the past two years, they have not only made further breakthroughs in related technology and production capacity, but also found buyers of start-ups, such as FF and Rivian.

After Tesla came to Shanghai to build a factory, LG chemistry finally waited for the opportunity. They have built bases in Nanjing, while Matsushita does not have the capacity of cylindrical batteries in China. In scale production, LG chemistry has also increased its cost control over related products.

Panasonic also sniffed the crisis. During the past year, Panasonic and Tesla have repeatedly expressed their dissatisfaction with the other side when Tesla is looking for new suppliers in China. When asked whether he regretted investing in Tesla super factory a few years ago, Panasonic CEO Tsuka Chihiro actually said "yes, of course" in September last year.

An ultimate meaning

Over the years, Tesla and Panasonic battery "symbiosis", also secretly fight. Musk has repeatedly complained about the capacity of the battery factory in the social network, and Tsuka Chihiro has also publicly announced Tsu's Tesla production and management mode more than once.

The essence of the differences between the two sides is the lack of consensus on the distribution of interests. Musk extended his cost control to the upstream suppliers. As the most deeply tied supplier to Tesla, Panasonic felt that it was not worthwhile, so Tsuka Chihiro would regret his investment in the factory.

Among the top battery manufacturers in the world, Panasonic is the single customer group. It also relies on Tesla to become one of the largest battery companies in the world. But this single relationship did not get much of Matsushita's success. So many years of cooperation, until this year Matsushita said that the business began to make profits.

Behind this is Tesla's suppression of prices. Tsuka Chihiro once said that Mask had repeatedly asked for lower purchasing prices, and he was even forced to say something like, "if we do this again, we will remove all Panasonic employees and equipment in the factory."

Matsushita did not remove employees and factories, at least not on a large scale, but Tesla had to break away from this single supply relationship. The opportunity to build factories in China has introduced Tesla's LG chemical and two new suppliers in the Ningde era, trying to further reduce costs through local supply and technological improvements.

In the automotive industry, it is normal for a mainframe factory to have multiple suppliers, but Tesla's special feature is that it has already been strong when there is only one supplier, and Tesla can be more powerful when it has multiple suppliers.

"Tesla has gradually become a strong buyer," said an auto industry analyst to the twenty-first Century economic report. "Obviously, it can squeeze existing suppliers with new buyers. And objectively speaking, its scale is enough to give it the right to negotiate at the table.

In twenty-first Century, the business reporter learned from people familiar with the matter that although most of the battery packages of domestic Model 3 are imported from the United States, a small number of LG chemical products are already in use. With the completion of the battery production line in Shanghai factory, the domestic Model 3 will realize the comprehensive local supply of power batteries.

It should be noted that LG chemical can be included in Tesla's supply chain to a large extent because of its cylindrical battery development and production. Mask had previously made clear in the investor conference that the battery pack would still adhere to cylindrical batteries. The reason is that the replacement of battery properties will make the vehicle structure change greatly.

From this perspective, the cooperation between Tesla and the Ningde era may come to the second stage.

It is reported that Tesla will purchase "cobalt free" lithium iron phosphate batteries to Ningde era. Although the two sides have not confirmed the news, the industry analysts believe that this is logical. On the one hand, as the domestic new energy vehicle subsidy goes down, the industry's pursuit of the mileage is becoming more rational. On the other hand, the technology of lithium iron phosphate battery has also made many breakthroughs in recent years. Ben, safety, life and other advantages.

However, from the technical path, lithium iron phosphate batteries and three yuan lithium battery is not the same, Tesla if the replacement of lithium iron phosphate battery, the battery pack, battery management system and so on re design, obviously need cycle.

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