New Energy Vehicles (NEVs) in China

SK On to exclude Chinese equipment suppliers for US battery factory

BlueOval SK, the battery joint venture between SK On and Ford, is unlikely to Chinese equipment maker for its planned factory in the US due to the ongoing trade war between the US and China.

Ultium Cells, the joint venture between LG Energy Solution and General Motors, had also excluded Chinese suppliers for their factories for the same reason.

South Korean equipment makers Kapjin and Wonik PNE are taking part in BlueOval SK’s equipment bidding order for its planned factory in Tennessee, which had Wednesday as the deadline, sources said.

Out of the 3 trillion won that will be spent on the factory, around 1 trillion won will be for equipment.

Kapjin and Wonik PNE are experts in making formation and cycler equipment used in battery production.

Kapjin had in the past supplied SK On with formation equipment for their factories in China and Hungary.

Meanwhile, Wonik PNE had supplied its kits to SK On for their factory in Georgia.

China’s Zhejiang Hangke had also been a supplier for SK On’s factory in Invacsa, Hungary, and the second factory in Yancheng, China.

The deals combined were worth 730 million yuan, or 140 billion won, for the Chinese equipment maker.

While the US Inflation Reduction Act doesn’t include battery equipment, it will be difficult for SK On to choose Zhejiang Hangke as a supplier to BlueOval SK, the sources said.

The Chinese battery equipment maker is also a supplier to LG Energy Solution and Samsung SDI.

While the company’s technology is not at the level of its South Korean counterparts, its equipment is price-competitive, being offered at as low as 60% of its competitors, the sources said.

tonyget said:

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SK On to exclude Chinese equipment suppliers for US battery factory

BlueOval SK, the battery joint venture between SK On and Ford, is unlikely to Chinese equipment maker for its planned factory in the US due to the ongoing trade war between the US and China.

Ultium Cells, the joint venture between LG Energy Solution and General Motors, had also excluded Chinese suppliers for their factories for the same reason.

South Korean equipment makers Kapjin and Wonik PNE are taking part in BlueOval SK’s equipment bidding order for its planned factory in Tennessee, which had Wednesday as the deadline, sources said.

Out of the 3 trillion won that will be spent on the factory, around 1 trillion won will be for equipment.

Kapjin and Wonik PNE are experts in making formation and cycler equipment used in battery production.

Kapjin had in the past supplied SK On with formation equipment for their factories in China and Hungary.

Meanwhile, Wonik PNE had supplied its kits to SK On for their factory in Georgia.

China’s Zhejiang Hangke had also been a supplier for SK On’s factory in Invacsa, Hungary, and the second factory in Yancheng, China.

The deals combined were worth 730 million yuan, or 140 billion won, for the Chinese equipment maker.

While the US Inflation Reduction Act doesn’t include battery equipment, it will be difficult for SK On to choose Zhejiang Hangke as a supplier to BlueOval SK, the sources said.

The Chinese battery equipment maker is also a supplier to LG Energy Solution and Samsung SDI.

While the company’s technology is not at the level of its South Korean counterparts, its equipment is price-competitive, being offered at as low as 60% of its competitors, the sources said.

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Why are you posting this here? What does this have to do with Chinese EVs?

ZeEa5KPul said:

Why are you posting this here? What does this have to do with Chinese EVs?

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Because battery equipment manufactures are part of Chinese EV supply chain. What does ASML have to do with Chinese semiconductor？

tonyget said:

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SK On to exclude Chinese equipment suppliers for US battery factory

BlueOval SK, the battery joint venture between SK On and Ford, is unlikely to Chinese equipment maker for its planned factory in the US due to the ongoing trade war between the US and China.

Ultium Cells, the joint venture between LG Energy Solution and General Motors, had also excluded Chinese suppliers for their factories for the same reason.

South Korean equipment makers Kapjin and Wonik PNE are taking part in BlueOval SK’s equipment bidding order for its planned factory in Tennessee, which had Wednesday as the deadline, sources said.

Out of the 3 trillion won that will be spent on the factory, around 1 trillion won will be for equipment.

Kapjin and Wonik PNE are experts in making formation and cycler equipment used in battery production.

Kapjin had in the past supplied SK On with formation equipment for their factories in China and Hungary.

Meanwhile, Wonik PNE had supplied its kits to SK On for their factory in Georgia.

China’s Zhejiang Hangke had also been a supplier for SK On’s factory in Invacsa, Hungary, and the second factory in Yancheng, China.

The deals combined were worth 730 million yuan, or 140 billion won, for the Chinese equipment maker.

While the US Inflation Reduction Act doesn’t include battery equipment, it will be difficult for SK On to choose Zhejiang Hangke as a supplier to BlueOval SK, the sources said.

The Chinese battery equipment maker is also a supplier to LG Energy Solution and Samsung SDI.

While the company’s technology is not at the level of its South Korean counterparts, its equipment is price-competitive, being offered at as low as 60% of its competitors, the sources said.

Click to expand...

Korean factories in the US don't/can't use Chinese batteries. It's a non-story. America's shutting itself off as a market because it can't compete with China; it has to develop in parallel pretending there is no Chinese competition. It's to be expected. Chinese EVs can go all over the world and the US can be left behind; we all knew that.

tonyget said:

Because battery equipment manufactures are part of Chinese EV supply chain. What does ASML have to do with Chinese semiconductor？

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Not the same relationship. It's mildly related to Chinese EVs in that a Chinese EV battery company won't participate in Korean/US EVs but those aren't Chinese EVs anyway. We build ours and they build theirs... worse and fewer. ASML was the only viable lithograph company in the world and Chinese semiconductors used to rely solely on ASML; that's a much more cohesive relationship, though in the coming years, thanks to Trump, ASML will also have less and less to do with Chinese semiconductor manufacturing.

I spent an hour listening to this and it turned out to be the official unveiling in Brazil of Song+ DM-i and Yuan+. Keep in mind, Tang and Han have already been introduced in the market.

Chinese NEV maker BYD delivers 3 million units as of Nov 16, demonstrating China’s auto manufacturing prowess

By in Shenzhen Published: Nov 17, 2022 01:56 PM



Workers work on the assembly line at a factory of vehicle manufacturer BYD Auto in Xi'an, northwest China's Shaanxi Province. File photo: Xinhua

Chinese new-energy vehicle (NEV) company BYD announced on Wednesday that it has produced and delivered 3 million NEVs, making it one of the first automakers in the world to hit this sales milestone, which speaks volume for China's auto manufacturing prowess and the country's accelerated push toward a greener economy.

At the event to celebrate the milestone number held in Shenzhen, South China's Guangdong Province on Wednesday, the No. 3 millionth vehicle was rolled off the production line, and then delivered to women's football star Wang Shuang.

BYD is the first Chinese automaker to hit NEV sales above 3 million units. On a global scale, US NEV-maker Tesla's sales also hit 3 million in August, just ahead of BYD.

According to a statement BYD sent to the Global Times on Thursday, it took 13 years for the NEV-maker to deliver its first million vehicles, and another one year to make its total sales climb to 2 million. And it only took half a year to reach 3 million, demonstrating a continuous rise of China's auto industry and a speedy ride of Chinese automakers in NEV industry.

"It is one of the best pieces of evidence underscoring China's transformation from 'big auto nation' to 'strong auto nation,'" according to the statement, noting that China's rapidly-amassing NEV industry will also aid the global carbon neutrality goal.

BYD's founder Wang Chuanfu said earlier that the company has acquired core technology across the industrial chain, including power battery, chips and electrical machinery, and "achieved self-sufficiency," after years of developing since entering the auto industry in 2003.

BYD will continue gearing up investing in global markets, and promote the NEV industrial chain's globalization, according to the statement. The company has sold NEVs in over 400 cities and 70 countries and regions.

In the first 10 months of 2022, China's NEV sales more than doubled year-on-year to over 5 million units, accounting for over 60 percent of the global share. And from January to October, the exports of NEV also jumped 96.7 percent to 499,000 units, data from the China Passenger Car Association showed.

tphuang said:

The big news from yesterday was the official unveiling of the yangwang high end brand.

https://twitter.com/i/web/status/1592841736761806849

on top of that, there is also launching of a highly specialized and personalized new brand

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It is getting confusing to me why they need so many brand.

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This is a question I was going to ask as well. In Australia GWM three vehicles across two brands (GWM and Haval), and has disclosed plans to bring in vehicles from the Tank and Ora brands also. Yet I can't see that it makes any sense to dilute still very limited brand recognition and value here by introducing additional brands. In China this level of brand differentiation may make sense, but here it seems like a recipe for ... if not failure, then less success than might otherwise have been possible.

Lethe said:

This is a question I was going to ask as well. In Australia GWM

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three vehicles across two brands (GWM and Haval), and has disclosed plans to bring in vehicles from the Tank and Ora brands also. Yet I can't see that it makes any sense to dilute still very limited brand recognition and value here by introducing additional brands. In China this level of brand differentiation may make sense, but here it seems like a recipe for ... if not failure, then less success than might otherwise have been possible.

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They should merge GWM brand into Haval, and get rid of Wey

After that it's mostly fine. Haval for family SUV/pickups, Tank for expensive off road style SUV, Ora for lady buyers. It's a pretty good segmentation

tphuang said:

I spent an hour listening to this and it turned out to be the official unveiling in Brazil of Song+ DM-i and Yuan+. Keep in mind, Tang and Han have already been introduced in the market.

https://twitter.com/i/web/status/1593018831706157056

Click to expand...

More on this one
They announced that both cars will be 269.99k BRL which is a $49500, so almost twice as much as the price for these cars in China. Brazil is a really profitable market.

Apparently, they already have 9 stores open and will expand to 100 next year.

There will be an announcement in December about the new factory/investment they've made in Bahia, but here is a sneak peak.
Their presence their is already encouraging more investment into mining, since that is needed for the iron, lithium and phosphate for the blade batteries.

Stella Li also mentioned that BYD will enter Chile with Song+ DM-i. again, more details in December. I'm not sure if that means the production from Brazil will be exported there or the cars will be shipped over from China.
On the video call I listened to, they mentioned a whole bunch of Latin American market where they want to bring these cars to. Song+ DM-i is a really competitive product.

Shenzhen Shen-Shan base will be one of their largest car factory plant. It's a huge industrial auto zone. The initial phase 1 will start production in July 30th 2023. It will have capacity of 600k a year. There is a phase 2 that will probably increase production to 1.5 million? More importantly, they purposely built their own RoRo port next to phase 2 industrial park so that cars can be shipped out for export really easily. Here is the thing, BYD is still in the early innings of its export endeavors. Just like China with BRI, BYD export from China will continually get more efficient over time whether it's through its own large port next to Shenshan with its own PCTC or through its own rail freight stations in Xi'an and plants in Thailand and Kazakhstan. It is investing tremendous amount of money in all these experience centers, sales network logistics and oversea factories. That's what BYD is great at, building full supply chain, logistics and sales network. Eventually, they will really harvest the fruits of their investment. This is what happens to a company with vision that's not beholden to Wall Street.