Author: Wang Lingfang

中航锂电 (CALB) has once again refreshed its capacity planning, with a planned capacity of 500GWh by 2025 and 1TWh by 2030.

On November 17th, the CALB strategic conference with the theme “共伟大 共美好” was held in Changzhou. Liu Jingyu, Chairman of CALB, announced three major events:

1. Independent development of military and civilian products, and CALB’s Luoyang company will mainly focus on military business operations.

2. Completion of the stock reform of civilian business operations, and the establishment of a new image for CALB – “中创新航” after brand upgrading.

3. Expansion of industrial layout. CALB is focused on building an industrial cluster development model, planning to form five major industry clusters in the Pearl River Delta, Yangtze River Delta, Southwest China, Central China, and Northeast China, and planning to build overseas R&D and production bases to construct a global R&D network.

Recently, CALB has frequently appeared at major forums, and has also invited more media to participate in press conferences. It is clear that CALB, which has entered the top three of China’s power battery companies, needs the assistance of the capital market to enter a bigger stage.

2025: 500GWh 2030: 1TWh

(1) Rapid advancement in production capacity planning

After five months since the “Global Partner Conference” announced its production capacity planning on June 1st, CALB has once again expanded its production capacity planning. The capacity planning for 2025 has been increased from 300GWh to 500GWh, and it is expected to reach 1TWh by 2030.

CALB Chairman Liu Jingyu said that since 2021, the company has accelerated the expansion of its industrial layout. It has established seven large industrial bases in Changzhou, Luoyang, Xiamen, Chengdu, Wuhan, Hefei, and Heilongjiang, and will focus on building an industry cluster development model, planning to form five major industry clusters in the Pearl River Delta, Yangtze River Delta, Southwest China, Central China, and Northeast China, and also planning to build overseas production bases in Europe and North America. It will form four R&D centers in Shenzhen, Shanghai, Changzhou, and Chengdu, and plan to set up R&D centers in Europe and North America in the future. They will continue to establish new research and development layouts to build a global R&D network.

(2) Tremendous advancement in product performance.In terms of product, they have also made great progress. During the press conference, Liu Jingyu gave four examples. First of all, at the system level, AVIC Lithium Battery also achieved effective control over thermal runaway, and the product can achieve safety without catching fire.

Secondly, in terms of performance, AVIC Lithium Battery launched the third generation high-voltage product of Nickel 6 series this year, with a range of up to 800 kilometers.

Thirdly, in terms of fast charging, AVIC Lithium Battery will launch a 4C fast charging product that supports 10-minute charging next year.

Fourthly, in terms of system integration, AVIC Lithium Battery has launched One-Stop Battery, reconstructed product design and process design, achieved simplification in safety, high specific energy, and low cost.

In terms of technical route, they also have their own judgment. As we all know, AVIC Lithium Battery mainly uses rectangular batteries, but in terms of technology, they also explore other battery forms.

Pan Fangfang, AVIC Lithium Battery’s deputy general manager and chief technical officer, told “Electric Vehicle Observer” that in 2007, they made plastic shell batteries; from 2011 to 2012, they started making steel shell batteries, and later aluminum shell batteries. In 2015, they also mass-produced soft-pack batteries.

Therefore, from their experience, rectangular batteries are a better battery form that takes all aspects into account and is their mainstream route. They also have reserves for cylindrical battery technology, and will definitely lay out related products in the near future, and the quantity of cylindrical batteries in the future will not be small.

But Pan Fangfang also clearly stated that they will not choose soft-pack batteries as the main technical route for power batteries and will not have too much investment.

Regarding the future development strategy, Liu Jingyu pointed out that the company will continue to deepen energy storage technology, focus on three directions: energy storage materials, new energy storage systems, and efficient recycling and regeneration, and continuously make efforts in the “intelligence+” and “energy+” directions, to build a full-scale energy operation system, accelerate the process of clean energy substitution, promote driving mode transformation, and promote social decarbonization development.

(3) Symbiosis and win-win among enterprises

As the fastest-growing battery company, the industry is paying close attention to what kind of relationship will be formed between AVIC Lithium Battery and leading enterprise CATL.

Liu Jingyu said frankly that she does not mention competition or ranking within the company. In terms of business philosophy, she advocates surpassing business and benefiting humanity.

In Liu Jingyu’s view, the market is there, and whoever can do it well needs to rely on their own strength. The relationship between them and their peers is symbiotic and win-win. Each enterprise has its own strengths and is worthy of learning from.”At present, the mature stage of the power battery industry is still far away, and it is too early to talk about competition among enterprises. At this time, enterprise competition is a destructive blow to the industry,” said Liu Jingyu.

Regarding GAC Group’s involvement in the cell business, Liu Jingyu said she understands. She believes that as an important component on the automobile, it is very reasonable for automakers to carry out technological reserves and development of batteries, just like battery companies going upstream to develop materials. It’s good for automakers to understand batteries to a certain extent; it’s another matter how large a scale they can achieve in the future, and the supporting facilities cannot be closed off or entirely self-supporting.

In Liu Jingyu’s view, their cooperation with GAC is very stable, and their relationship is not just a supply chain relationship, but also an ecological relationship where “you are in me, and I am in you.”

Regarding the intellectual property dispute with CATL mentioned by the “Electric Car Observer,” Liu Jingyu did not evade the question.

Liu Jingyu does not agree with the speculation that malicious infringement may have occurred. As a central enterprise, CATL bears a mission and responsibility, and therefore must invest in technology. CATL could not have had the motive to intentionally infringe someone else’s patent.

Liu Jingyu believes that Ningde Times, as the currently largest player in the industry, and Chairman Zeng Yuqun, should also have a broad vision as entrepreneurs. The entire ecosystem needs everyone to work together to maintain and develop the industry healthily.

Company Renaming and Strategic Upgrading

The important content of the CATL press conference this time is the announcement of strategic upgrading.

At the press conference, after the culture and talent strategy, product and technology leadership strategy, and quality strategy, Liu Jingyu publicly proposed a new strategy for the first time – brand strategy.

On the day of the press conference, Liu Jingyu, wearing a purple suit, was on stage with bright eyes and a soft, yet firm tone.

Liu Jingyu announced that CATL’s military and civilian businesses will be operated independently, with CATL Luoyang Company taking over the military business to make it better and stronger.

The civilian business will be newly upgraded and named “Zhongchuangxin Hang,” which is the new company name and brand.

To demonstrate their high expectations for “Zhongchuangxin Hang,” Liu Jingyu specially took off her suit jacket and revealed a purple-red top, expressing both joy and anticipation.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.