Who will win the battle for electric battery technology?
SHANGHAI, June 18, 2021 / PRNewswire / – With the changing landscape of the global auto industry, Cango Inc. (NYSE: CANG) (“Cango” or the “Company”) publishes a bimonthly industry analysis called “CANGO Auto View” to bring readers, drivers and passengers up to date with the automotive market offerings, emerging trends and gaps to be filled.
Below is an article from the 3rd edition of the Society for February 2021.
In 1876, Nicolas August Otto, a German, made a four-stroke gasoline engine with his friend Eugene Langen. The thermal efficiency of this engine reached 6%, or four times that of the gas engine manufactured by Lenoir at the same time. This is how the internal combustion engine was born, ushering in a new era for passenger vehicles, heavy trucks, ships, airplanes and many other means of human mobility. As a result, petroleum energy has become increasingly critical.
On the other hand, it has been over a century since the invention and use of electric vehicles (EVs). As early as 1881, the French engineer Gustave Found built a tricycle powered by lead-acid batteries. But due to backward technology, batteries were not as economical as internal combustion engines and therefore were not used on a large scale.
Fast forward to 2020, the advancement of new energy technologies has prompted automakers around the world to start planning for electric vehicles, resulting in a series of pure electric vehicle launches. European manufacturers of passenger vehicles led by Volkswagen plan to invest hundreds of billions of euros in electrification and introduce hundreds of car models. Volkswagen reportedly started mass production of models based on its purely electric MEB platform, and the ID.3 was crowned Europe leader in the supply of pure electric vehicles.
meanwhile at China, Tesla, Nio, Li Auto, WM Motor and other emerging auto makers have made a name for themselves, and traditional auto makers have launched one new energy brand after another.
In 2018, BAIC BJEV created a joint venture with Magna, and the ARCFOX brand moved to Zhenjiang; DFMC incubated Voyah; SAIC, Alibaba and Shanghai Pudong New Area jointly invested and set up IMMotors; and three years after its inception, GAC AIAN officially launched independent operations. Several parties took to the stage to jointly usher in the era of emerging automakers.
Available data indicates that the domestic market for NEV has maintained steady growth. From november 2020, cumulative NEV sales in China reached 1.109 million vehicles. In 2019, 1.242 million NEVs were produced in China, which represents a decrease of 2.25% compared to 1.27 million in 2018, but a jump of 58.37% compared to 517,000 in 2016. It should be noted that only 79,000 NEV were produced in China in 2014.
In terms of industrial chain structure, NEVs are similar to traditional gasoline vehicles in that their industrial chain involves multiple industries and a relatively complex chain of actors. The industrial chain of New Energy Vehicles (NEV) is however structurally different from that of traditional vehicles, as the biggest difference between these two types of vehicles is that the engines of traditional vehicles have been replaced by engines, batteries and electronic control parts in NEV. In other words, on the basis of the traditional industrial chain, the battery industry (including the development of upstream resources), motors and electronic control systems have been added to the industrial chain of NEVs.
Battery safety remains an issue
NEVs are experiencing gradual but steady growth around the world, and from China The power battery industry has entered a phase of rapid development. In 2019, the scale of from China the power battery market has exceeded 70 billion the yuan and the battery power amounted to 71 GWh. Behind the rapid growth, however, the future trend of new battery-to-power technology and current battery safety have sparked heated discussions in society.
Over the past three years, China has seen the spontaneous combustion of NEVs from time to time. In 2020 alone, there were more than 20 such accidents, involving multiple national brands and joint ventures.
the The main reason for electric vehicle fires is spontaneous combustion caused by thermal runaway, which occurs as a result of external impact on batteries or poor battery control. For example, spring and summer are high incidence seasons of electric vehicle fires, mainly because battery performance changes due to long periods of high temperatures, rain, and other environmental factors. In addition, the use of high energy density batteries, battery overcharging and physical collision will lead to changes in the internal structure of the battery which, in turn, will lead to spontaneous combustion.
founder of Tesla Elon musk insists, however, that the probabilities of spontaneous combustion are lower for most electric vehicles than for gasoline vehicles. And he’s right. According to the Battelle Memorial Institute in the United States and many other institutes, from a technical point of view, electric vehicles indeed have a lower risk of spontaneous combustion than traditional gasoline vehicles.
A fact of note, however, is that the fleet of electric vehicles is relatively small and it is in the early stages of industrial development and is not yet widely accepted by consumers, the safety issues need to be monitored yet. more closely.
About Cango inc.
Cango Inc. (NYSE: CANG) is a leading automotive transaction service platform in China connecting dealers, financial institutions, car buyers and other industry participants. Founded in 2010 by a group of pioneers in from China the automotive finance industry, the Company is headquartered in Shanghai and engages car buyers through a nationwide dealer network. The Company’s services mainly consist of the facilitation of automobile financing, commercial car transactions and the facilitation of after-sales services. Using its competitive advantages in technology, data insight, and cloud-based infrastructure, Cango is able to connect its platform participants while providing them with a premium user experience. Cango’s platform model places it in a unique position to add value to its platform participants and business partners as automotive and mobility markets in China continue to grow and evolve. For more information, please visit: www.cangoonline.com.
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SOURCE Cango Inc.