In the first month of 2021, a strategic purchase agreement of no less than 900 million yuan has made a “good start” for Far East Smart Energy Co., Ltd.’s smart battery business. (This may be an important feature of the new opportunities brought about by the recovery of the new energy industry. To a certain extent, this also shows that greater opportunities are brewing in the industry. How can relevant companies better grasp them? What’s up?

Policy + the dual value of the market, what will the industry pick up?

“New energy is the trend of development.” After years of exploration and accumulation, this view has gradually evolved into a reality. It can be felt from more and more innovative electric vehicles on the highway, and it can be seen from the endless stream of electric vehicles. The two-wheelers feel that consumers have begun to accept and are accustomed to their existence, which also means that the industry has clearly recovered.

At the end of last year, the State Council issued the “New Energy Vehicle Industry Development Plan (2021-2025)”, clarifying that my country’s new energy vehicle sales will account for approximately 20% of China’s new energy vehicle sales in 2025. Based on the analysis of the current automotive market size, the average annual sales growth rate will exceed 30%, which directly corresponds to the growth on the demand side. The clear top-level design has further stimulated confidence in the power battery market.

In addition to new energy vehicles with a high degree of attention, the electric two-wheelers have been undergoing earth-shaking changes. Corresponding enterprises also regard the transformation of lithium batteries as an important phased strategy. It is foreseeable that with the end of the transition period of the new national standard, electric two-wheelers will be equipped successively to jointly improve the battery life, power, charging and discharging performance of electric two-wheelers, thus becoming the most suitable alternative after the implementation of the “no motorcycle” policy. Taste”. Based on these factors, GGII predicts that the penetration rate of the electric two-wheeler market will reach 23% by 2021.

In fact, not only electric vehicles (power batteries), electric two-wheeled vehicles (small power batteries), including 3C digital, power tools and other market segments are expanding, and the corresponding growth space is also expanding. It can be said that various new Opportunities are emerging one after another following the recovery of the new energy industry. In addition, affected by the market share of power battery head companies, the small power market may be the biggest breakthrough for other pioneers.

Under the change, what is Far East Holdings?

Far East adheres to the road of new energy industry, strives to build a power battery industrialization base that integrates production, education and research, and further builds the four major advantages of scale, technology, production and industrial chain synergy. In the development process, the company adheres to the principle of technology-driven and innovation-led, continuously builds and improves the research institute, introduces and trains advanced talents, and establishes a technical team composed of professionals. At the same time, Far East also undertook the construction of “Postdoctoral Research Workstation” and “Academician Workstation”.

Far East Battery, a subsidiary of Far East Holdings, relies on strong R&D capabilities to continuously promote product upgrades and develop products with high safety, long life and high specific energy. In view of the short-distance travel anxiety and the typical characteristics of cordless power tool products, Far East Battery puts forward higher R&D requirements for discharge rate, battery capacity and cycle life. On the basis of 18650, it has developed a 21700 battery with both capacity and speed. The production capacity has also been enlarged. The current daily output is 18,650 and 21,700, exceeding 1.4 million.

Thanks to sufficient production capacity and excellent product performance, Far East Battery can expand its business layout more confidently. According to the previous strategic plan, we have successively launched the layout of power batteries, low-power batteries and 3C digital market segments. Among them, we have achieved good results in low power and successfully tapped the blue ocean of new market segments.

Many strategic signings, what’s the next step?

In the past year, its Far East Battery focused on expanding the small power battery market, and successively signed strategic cooperation agreements with Niu Gensheng, CSG, Xinri and other two-wheeler manufacturers to become suppliers. In the next three years, Niu Power will purchase no less than 150 million yuan of lithium battery cells from Far East, which is expected to generate no less than 900 million yuan in operating income. Xinri shares stated that it will deepen cooperation with Far East in the two fields of electric bicycles and electric vehicles, realize the transformation of lithium battery electrification, and become a leading enterprise in electric bicycles……

In addition, based on regional economic considerations, the headquarters of Far East Enterprises is located in Wuxi, and Wuxi is one of the four largest electric two-wheeler production bases in China (the only two listed companies in the electric two-wheeler field, Xinri and Yadi are both in Here), it can be described as “a month near the water platform”, and there are a large number of customers next door. At the same time, with the in-depth transformation of electric bicycle companies to lithium batteries, we will achieve a larger-scale cooperation and win-win situation with Far East Holdings in the future.

In the field of power tools, Far East Holdings signed a strategic cooperation agreement with Posco Technology, a world-class power tool manufacturer, and tested and re-developed products according to demand. In the field of power batteries, we will consolidate cooperation with Jiangling and other new energy automobile companies, and continue to expand cooperation with other new energy automobile companies, focusing on the development of the flagship product 21700 cylindrical lithium batteries. “The future is already visible. Far East Holdings will continue to strengthen research and development, and deepen the three major market segments on the basis of existing advantages.

New energy is a huge ship sailing into the future. The Far East is already on board. At the same time, we will cooperate with Far East Company and related industry chain companies to work together to build and share a safe, green and beautiful life with the mission of “creating value and serving the society”.