Rebirth 99 to become a car giant.

Chapter 898: Special industry conditions, this kind of happiness has many worries (page 13)

The popularity of S9 in the future is actually not an isolated incident.

The entire electric vehicle industry is developing several years faster than the same period in history.

Especially in China, various independent brands have followed Future Auto and launched their own electric vehicles, and even established new energy companies to produce electric vehicles.

Companies such as Yangcheng Aian, Didu New Energy, and Changan Automobile are among the best.

Most of the batteries produced by these companies use Nanshan batteries.

With the unexpected development of the industry, the supply pattern of the battery industry has also begun to undergo significant changes.

"Mr. Cao, according to the latest adjusted production plans of various companies, the production capacity of our battery factory is very tight."

"And the supply of production capacity in the next two years is also in a very tight state."

Lin Cheng is now enjoying the troubles of happiness.

Insufficient production capacity is a relatively rare thing in all walks of life in China.

More often than not, companies have excess production capacity, and everyone is thinking about how to expand the market and absorb production capacity.

The most obvious one is the steel industry.

Many people may have heard of such an interesting steel production capacity ranking.

First in China, second in Hebei, China, third in Tangshan, Hebei, China, fourth in Japan, and fifth in the United States!

China has made steel so cheap that the price of a pound of steel is even lower than that of a pound of cabbage.

Even for high-end products like special steel, most of the time the price is not as good as that of organic vegetables.

It’s really hard to describe.

Normally speaking, there will not be insufficient production capacity for power batteries.

Because in recent years, Chinese power battery manufacturers have sprung up like mushrooms after a rain.

In the past few years, many battery manufacturers have been worried about their production capacity consumption.

However, if we really look at the specific production capacity, in fact, the annual production capacity of most battery manufacturers was less than 1GWH a few years ago.

What is the concept of this thing?

If we put it on the S9, we can only produce more than units, which will be used up in a month.

Of course, in recent years, under the leadership of Nanshan Battery, coupled with the rapid increase in sales of electric vehicles by companies such as Yangcheng Aian and Changan Automobile, the production capacity of various domestic battery manufacturers has also been increased rapidly.

Nanshan Battery, in particular, leads the world in terms of production capacity and has already broken through the important threshold of 10GWH.

But compared with the production capacity of more than 100GWH in later generations, it is definitely still far behind.

Investing in a battery production line, starting with land acquisition, usually takes about 3 years for mass production.

Even if it is slightly compressed, two years is normal.

Even if there is a ready-made production line, it will ultimately take about a year to complete.

This is assuming there is no problem with the supply of battery equipment.

In fact, because so many battery manufacturers are expanding production, the related equipment supply schedule is also relatively tight.

"In China, the tight production capacity of any industry cannot exist for a long time. In two or three years at most, our battery production capacity will be able to meet the requirements."

"I estimate that the new battery production capacity added this year may be comparable to the country's cumulative production capacity before last year."

Cao Yang's words are really not nonsense.

China's industrial industry is so crazy.

As long as everyone sees that there is a lot of money to be made in a certain field and the supply of products exceeds demand, they will definitely rush to it.

Enterprises that do not have factories in this area will find ways to solve related bottlenecks.

As for companies that are originally involved in the battery industry, they will not miss this opportunity.

Financing, loans, building new factories.

In this case, all means will be used quickly.

Various places are definitely very supportive of projects like battery factories that can be linked to new fields such as the new energy industry.

If you invest in a traditional lead-acid battery factory, many places may be a little bit disgusted with it.

But if it is a power battery factory, it is completely different.

"Yes, but even if we can predict this situation, our production capacity still needs to expand rapidly."

"Even if there is excess production capacity by then, it will first be the excess of other companies. Our production capacity should still be controllable."

Lin Cheng is still very confident in Nanshan Battery.

As the largest battery manufacturer with leading technology in the country and even the world, Nanshan Battery does not need to worry about its own production capacity that no other manufacturer will need in the future.

At least until the production capacity of other manufacturers is significantly vacant, there is no need to worry about the idle production capacity of Nanshan Battery.

Considering that although the electric vehicle industry is developing rapidly now, there is still a huge gap compared with ten years later.

Therefore, even if the supply and demand pattern changes in two or three years, there is really no need to worry.

Therefore, Cao Yang also agreed with Lin Cheng's expansion plan and said: "Nanshan Battery predicts the number of projects based on each customer's projects. If it is necessary to invest, just invest boldly without getting entangled."

"However, if some customers give an exaggerated number of units, you may need to consider how to avoid risks."

“Especially when some customers’ battery packs have special specifications and even the cells are specially designed, if we invest in special production lines or even factories for them, we will not only make a lot of money, but at least be guaranteed not to lose money. plan.”

Cao Yang's concern is not unreasonable.

Now if you tell me that the annual demand for a project is 10 vehicles, this basically requires a production capacity of about five or six GWH, which can be enough to build a factory.

At this time, if I build a factory specifically for you, what will you do if you sell thousands of vehicles a year, or even fail to sell thousands of vehicles?

Wasn’t my factory built in vain?

No money for land? Well, maybe it really doesn’t cost any money.

What about the equipment?

Equipment always costs money, right?

There are also all kinds of labor recruited, these are all costs.

Without any guarantee, it would obviously be a bit abnormal for Nanshan Battery to bear all the risks.

That's why Cao Yang specially reminded him.

This kind of thing will happen with a high probability, or it will happen in some projects, so you must pay attention to it.

"Mr. Cao, we are also considering this issue internally."

"There are two main methods now. One is to let the OEMs invest in the equipment themselves and pay the equipment in one go. Our production lines will be built specifically for them."

"On the other hand, both parties sign a formal contract to restrict the number of units. If the specified number of units is not reached in the future, the other party will have to compensate."

"In short, we definitely cannot bear all the risks ourselves."

Lin Cheng was obviously not that impulsive. When he saw the project, he rushed forward without caring about anything.