On September 29, the chairman of CATL, Zeng Yuqun, revealed at the 2020 World New Energy Vehicle Conference that CATL has developed battery products that do not burn but smoke, and will be mass-produced on some models by the end of the year. “The national standard requires that the battery does not fire in 5 minutes. Our newly developed product can achieve no fire but smoke. It will be mass-produced in some models at the end of the year… Even if one battery cell catches fire, the entire PACK (battery pack) will only emit smoke. This is a direct solution to the pain points,” he said. At present, high energy density and high safety are no problems, but low cost still needs time to solve.
Ningde Times Chairman Zeng Yuqun gave a speech at the 2020 World New Energy Vehicle Conference Picture source: Ningde Times
Zeng Yuqun mentioned that through innovation and research and development, CATL has continuously improved the performance and advantages of power batteries in terms of mileage, charging, low temperature, value preservation, cost, and safety. High nickel plus silicon anodes can already be mass-produced. CTP (Cell to Pack, A technology that claims to be able to significantly reduce the weight of the entire package-Observer Network Note) has also been mass-produced.
At the meeting that day, Zeng Yuqun also emphasized that European investment in the new energy automobile industry has surpassed China. “In 2018, China’s investment in the new energy vehicle industry was about 7 times that of Europe. In 2019, Europe rapidly increased its investment, and China was less than 30% of Europe.”
In his view, this situation is very dangerous, and our country cannot hesitate to transform to electrification. “If this trend continues in the next few years, and there is no output without input, it will be difficult for us to stay in the first echelon.”
He believes that the overtaking of the European market is mainly due to the implementation of fiscal and taxation policies and management policies. “The domestic market subsidy is up to 22,500 yuan, and 10% of the purchase tax will be exempted by 2022; while the European market subsidy policy is up to 73,600 yuan in Germany, and a 3% value-added tax is also reduced.”
Zeng Yuqun called on the Chinese government to introduce a subsidy policy related to battery leasing. On the one hand, it can reduce the purchase cost of users. On the other hand, enterprises can continue to invest in technology and maximize profits after 10 years.
In addition, Zeng Yuqun also predicted that the era of oil level prices will partly come in 2023 and will come in full in 2025.
The full text of Zeng Yuqun’s speech:
Dear Vice Chairman Wan Gang, leaders, distinguished guests, ladies and gentlemen, good morning!
Today I am honored to be able to participate in the World New Energy Vehicle Conference. The topic of my speech is technological innovation and industrial coordination, which will jointly promote the sustainable and healthy development of the new energy automobile industry. It mainly includes three aspects, embracing change, technological innovation and industrial coordination.
Embracing change and grasping major industrial opportunities
At present, the climate problem faced by mankind is still severe. The global warming caused by energy consumption is becoming more and more serious. The global average temperature rise has exceeded 1.2℃. This endogenous factor drives the rapid development of the industry.
Under the influence of this consensus, the power of countries and global car companies to transition to new energy is increasing day by day, and the speed of vehicle electrification has been significantly accelerated in recent years. We expect the global sales of new energy passenger vehicles to reach 12 million in 2025. The compound annual growth rate of new energy vehicle sales in 2019-2025 will reach 32%.
Recently, I saw a lot of intelligent cars at the Beijing Auto Show. People can clearly see the effect of intelligence. Wuling’s MINI has an amazing sales of 29,800 yuan. It will sell 30,000 units every month in December this year and 1 million next year. Taiwan, this car is very suitable for young people. It is called a nap artifact. You can go to the car for a lunch break at noon. Because it is purely electric, there is no need to worry about carbon monoxide poisoning.
From a global perspective, there are five main driving factors for electrification:
In terms of national energy strategy, energy security forces the energy transition. At the government level, emission regulations in various countries have been continuously tightened, making it increasingly difficult for traditional fuel vehicles to meet the standards. At the enterprise level, the electrification strategies of the world’s major auto companies have advanced. In the past, it was a general platform, which can be used for fuel vehicles or electric vehicles. Now there are more and more dedicated platforms for pure electric vehicles. At the user level, consumers’ recognition of electrification is increasing, and unmanned driving brings unprecedented driving pleasure. In terms of infrastructure, supporting facilities such as charging piles have been gradually improved, and the degree of intelligence has been continuously improved, and energy supply has become more and more convenient. Infrastructure is becoming a guarantee to support the development of new energy vehicles.
Specifically, by 2025, the plans for the electrification rate of various car companies are 33% for BMW, 25% for Volkswagen, 50% for Volvo, and Tesla to sell 3 million vehicles. In fact, by 2030, many car companies will have to reach 50%. International car companies no longer develop engines, and our universities are already offering energy storage majors.
The above factors are superimposed, and we have clearly felt the huge changes in the market this year, which can be summed up as Europe’s all-round acceleration and overtaking. The first is the overtaking in terms of sales. In the first seven months of this year, sales of new energy vehicles in Europe increased by 71% year-on-year, sales surpassed China for the first time, and the gap is widening. It is a high probability that European sales surpassed China in the whole year.
The second overtake is policy. The domestic passenger car subsidy is up to 22,500 yuan, and the purchase tax is exempted by 10% before 2022. In horizontal comparison, the highest purchase subsidy in Germany can reach 9,000 euros, without purchase tax, and the value-added tax is 19 % Dropped by 3 points, and the highest purchase subsidy in France reached 7000 euros. In guiding the transformation of enterprises, Europe has adopted stricter carbon emissions. China’s double points can be adjusted. Many companies hope that the government will be more determined and consistent.
The third overtake is investment intensity. In 2018, China’s investment in the new energy vehicle industry was about 7 times that of Europe. In 2019, Europe rapidly increased investment, and China was less than 30% of Europe’s. If this trend continues in the next few years, and there is no output without input, it will be difficult for us to stay in the first echelon.
The acceleration of full electrification on a global scale has also brought a more proactive advantage to the industry, which is the decline in costs year by year. By 2023, some models will be able to achieve parity without subsidies for the first purchase, and the full range will be until 2025. We are also thinking of other methods, such as separation of car and electricity, battery leasing, commercial vehicles are relatively easy to achieve at present, and various future The pattern will appear.
Technological innovation consolidates the foundation of industrial reform
The Ningde era adheres to the three major development directions unwaveringly.
The first is the replacement of fixed fossil energy at the power generation end, that is, the use of advanced batteries and high-efficiency power systems such as renewable energy such as wind and water to replace coal power generation. Solar energy plus energy storage power generation can be used in areas where photovoltaic power is used for 2000 hours. Replaced by fossil energy.
The second is the replacement of mobile fossil energy. We must use energy storage devices and power batteries to completely get rid of dependence on oil.
The third is the development of application scenarios. We need to use electrification + intelligence to empower various application fields and scenarios, and provide sustainable, popular and reliable energy sources for all walks of life. For example, in the field of mining, we launched EnerMagic, an overall solution for electric smart unmanned mines, which realized unmanned operation and full electrification of mines.
The realization of all this depends on our core competitiveness, which is innovation. Through years of accumulation, CATL has gradually formed four innovation systems: material system innovation, system structure innovation, intelligent manufacturing innovation, and business model innovation.
In order to do well in these innovations, CATL insisted on practicing basic skills and exerting imagination. We want to create a world-class R&D platform. Therefore, we recently established a 21C innovation laboratory with 3.3 billion R&D investment and plans to develop more than 1,000 people in five years. People with lofty ideals are welcome to join. Fujian Province has given us an innovative system. We are a provincial laboratory dominated by private enterprises. We have an organization and enjoy the treatment of an enterprise.
Through innovation and research and development, we continue to improve the performance and advantages of power batteries in the six dimensions of mileage, charging, low temperature, value preservation, cost, and safety. High nickel plus silicon anodes have been mass-produced, and CTP has also been mass-produced.
In the future, the CTC we still need to do is to integrate the motor, electronic control, and vehicle high voltage such as DC/DC, OBC, etc. through an innovative architecture. The fast charging time will continue to be shortened to 9 minutes, 2 million kilometers in 16 years. The battery is also in mass production. In the future, it will continue to explore in the fields of high-voltage cobalt-free and metal-free battery systems.
The national standard requires that the battery does not fire in 5 minutes. Our newly developed product can achieve no fire but smoke. It will be mass-produced in some models at the end of the year. We hope that even if one battery cell catches fire, the entire PACK will only smoke. This is a direct solution to the pain point. Plan. At present, there is no problem with high energy density and high safety, and low cost still needs time to solve.
Through diversified and open and inclusive innovative research and development, we hope to master the core technology of power battery full performance, namely true safety, high specific energy, automatic temperature control, ultra-fast charging, long life and intelligent management.
CATL also hopes that in the future, it can strengthen cooperation with the industrial chain and expand the application fields of lithium batteries through business model innovation. The reason why we have to do 2 million kilometers in 16 years is for the innovation of business model. Battery leasing is a high-quality asset. We hope that the country can provide long-term low-interest loans to buy batteries and recover the cost in 5 or 6 years. The next 10 years It’s all profit. Many operating companies now operate vehicles or lease them to consumers for a few years, then return the vehicles to the operating company, PACK for energy storage charging stations, and finally recycle the batteries. One fish can eat four, and one fish can eat five.
Industry synergy and cohesion of industrial reforms
If the electricity used in electric vehicles is non-renewable energy, it will not help the replacement of fossil energy. The Nobel Prize winner in chemistry once said that because of the existence of lithium batteries, it is possible to replace fossil energy with renewable energy, which is changing the world. The way. The energy revolution and the transportation revolution converge, and advances in advanced technologies such as renewable energy, advanced energy storage, pure electric drives, 5G communications, and artificial intelligence have driven trillions of emerging markets.
In the future, electric vehicle batteries will be used as an auxiliary means of energy storage, which can not only help the adoption and storage of renewable energy, but also help reduce battery costs. Electric vehicle power batteries and electrochemical energy storage power stations will be managed through the blockchain. It can build a world-leading energy internet with Chinese characteristics.
With the guidance of the new four modernizations of connectivity, intelligence, electrification and sharing, we will realize an E-Mobility society in 2030, when the flow of energy will be unimpeded and clean energy will be everywhere. Unmanned mines and unmanned docks will soon be realized. We are currently working on electrification of underground coal, and there will be no need for workers underground in the future.
The mission of CATL is to build a world-class innovative technology company based on Chinese culture, tolerate global culture, and make outstanding contributions to the cause of new energy for mankind.