"The traditional automobile belongs to the category of manufacturing, showing a linear rise; Smart electric vehicles are technology-based companies that are growing exponentially, like Tesla in the United States, Nio and Xiaopeng in China."

Recently, "The 2nd New Energy Vehicle and Power Lithium Battery (CIBF2021 Shenzhen) International Exchange Conference" was successfully held in Shenzhen. The theme of this conference is "Soft Package Battery Technology Application and Development", focusing on soft package battery technology, supply chain, market and investment development.

On the special forum of "application prospect of high energy density soft pack battery", Fang Jianhua, partner and president of the new energy vehicle venture capital sub-fund of the National Science and Technology Achievement Transformation Fund, published a topic titled "China's power lithium battery industry under the dual cycle: "Trend and Investment Opportunity Analysis" keynote speech, detailed analysis in the domestic and foreign double cycle environment, power lithium battery industry development trend, investment opportunities and industry thinking.

Fang Jianhua said that in recent years, due to a series of factors, China has formulated a development strategy that focuses on the domestic cycle and both international and domestic cycles. China's power lithium battery industry is in such a situation: mainly in the domestic market, but the head companies have also begun to actively participate in the international market competition, the current domestic power lithium battery consumption accounts for about 80%, about 20% of the participation in the international market.

Fortunately, the influence of China's power lithium battery companies in the international market is gradually increasing. Fang Jianhua predicted that in the next few years, the ratio of China, Japan and South Korea in the global power lithium battery market will change from the current 3:3:3 to 4:3:2, and more domestic battery companies will participate in the international market competition, which is mainly supported by many advantages of China's power lithium battery industry:

First, the market size is huge, there are more powerful power lithium battery companies;

Second, the industry chain is the most complete, which can not only guarantee the security of the supply chain, but also prevent the cost from being constrained;

Third, the technology innovation ability is strong, the product technology route is rich, and the technology iteration driven by the market application is obviously higher than that of other markets;

Fourth, driven by industrial chain and technological progress, the domestic battery cost reduction rate is relatively fast.

Fang Jianhua pointed out that China's power lithium battery industry from the barbaric growth stage after the reshuffle phase, and now has entered the stage of sustainable development. At this stage, power lithium battery technology route, market competition and development prospects are increasingly clear. For example, in the battery technology route, lithium iron phosphate and ternary battery two parts of the world, is no longer a policy-oriented ternary alone. At the same time, with the decline of subsidies and the rise of electricity exchange mode, Fang Jianhua expects that lithium iron phosphate will have a larger application scenario and market space.

In 2020, new energy vehicles, power lithium battery industry listed company market value has a wave of surge, there are many people on new energy vehicles whether there is a bubble question. Fang Jianhua believes that the traditional automobile is a manufacturing industry, showing a linear rise; Smart electric vehicles are technology-based companies that are growing exponentially, "like Tesla in the United States, Nio in China and Xiaopeng in China."

Talk about power lithium battery company development opportunities, jian-hua fang, points out that although many competitive power lithium battery company has access to capital markets, have basic shape and pattern, but power lithium battery market pattern is not final, "xiao-he only expenses furore, and some focus on certain products, models and technology companies, including new forces, still have chance, "Recently we've seen new lithium players like Honeycomb start to gain momentum [in capacity]."

In the speech, Fang Jianhua also shared his thoughts on the investment targets of power lithium battery industry: first, safety; Second, scarcity; Third, forward-looking; Fourth, economy.

To be specific, safety is a pain point in the power lithium battery industry. Companies and technologies with potential value in the field of battery safety materials, design and technology are worthy of attention.

The scarcity is mainly manifested in the limitation of upstream resources and the "jam neck" area where products depend on imports.

Prospective technology refers to the next generation of large-scale applications or disruptive technology products, such as ultra-high nickel materials, silicon anode materials, flame retardant electrolyte and solid-state batteries, etc.

Economy is mainly reflected in the economy of some new technologies and new models, such as intelligent manufacturing cost reduction, electricity changing to reduce the cost of operation, purchase and charging, battery cycle life improvement and life cycle cost reduction.