button cell battery cr1620.Geely Power Battery plans battery R&D with RMB 3 billion

　　The reason behind Geely Automobile's accelerating the layout of its power battery business is that its new energy vehicle strategic development plan requires its own mastery of core battery technology as support, aiming to take a dominant position in battery R&D, production and supply. A few days ago, the Geely Technology Group New Energy Battery Research Institute project signing ceremony was held in Jiaxing, Zhejiang

　　The reason behind Geely Automobile's accelerating the layout of its power battery business is that its new energy vehicle strategic development plan requires its own mastery of core battery technology as support, aiming to take a dominant position in battery R&D, production and supply.

　　A few days ago, the Geely Technology Group New Energy Battery Research Institute project signing ceremony was held in Xiuzhou District, Jiaxing, Zhejiang. The project has a total investment of approximately 3 billion yuan and plans to build a battery cell R&D center, power system R&D center, analysis and testing center, energy storage and cascade utilization center, technology project management center and cutting-edge technology development center. It is expected to be officially operational within the year.

　　As the core component of electric vehicles, battery technology is a key factor in determining the product strength of a model. As subsidies for new energy vehicles gradually decline, car companies that can master the basics of batteries will undoubtedly have more effective cost control and competitive advantages. .

　　Geely Automobile's establishment of a battery cell R&D center is obviously to master the core technology of power batteries. Unlike other OEMs that focus on self-built or jointly built PACK companies with battery manufacturers, Geely has a deeper and more ambitious layout in the field of power batteries.

　　It is understood that Geely already has 300 core technology patents in new energy technology systems and solutions. In 2020, Geely Automobile will launch more than 30 new energy and electrified models on the market.

　　Currently, all major OEMs are making plans in the field of power batteries. In addition to BYD's own battery factory supplying batteries, international models including BMW, Ford, Volkswagen, Daimler and others are increasing their deployment of power batteries, mainly focusing on the research and development of advanced battery technology.

　　For example, BMW designs and assembles battery packs on its own. It first cooperated with CATL and put forward strict and complicated technical requirements for it, and finally developed BMW Brilliance's power battery. In addition to setting up a battery pack production factory and R&D center in Shenyang, BMW will also spend US$237 million to establish a battery R&D center in Munich, hoping to master and further improve battery technology in the future.

　　Daimler is teaming up with Krupp, Germany's IAV and Fraunhofer Institute for Ceramic Technology and Systems to carry out a bipolar battery research and development project based on lithium-ion technology, which is expected to increase the vehicle's endurance to 1,000km.

　　In addition, BMW, Ford and Volkswagen are also actively involved in the research and development of solid-state batteries, investing in solid-state battery companies such as Solid Power and QuantumScape and establishing joint ventures to jointly develop more advanced power battery technology.

　　It can be seen that regardless of whether they produce batteries themselves, participating in the research and development of power battery technology has become an indispensable means of competition for OEMs. Once they have mastered advanced battery technology, OEMs can guide and require suppliers to produce cells according to their precise product requirements and specifications, thereby gaining core competitive advantages.

　　This is also the key reason why Geely Group is so eager to master the knowledge and skills in battery cell R&D and production when it does not need to mass-produce battery cells on its own for the time being. It also verifies Geely's ambitions.

　　In fact, Geely has already laid out and accumulated experience in power battery cells, modules and PACKs. Currently, Geely Group's mid-to-high-end passenger car power battery cells mainly come from CATL and its subsidiary Hengyuan New Energy. Its subsidiary Vair Electric Vehicle Technology (Suzhou) Co., Ltd. is responsible for the powertrain. CATL is its largest Power battery supplier.

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