SAIC and Ningde Era to Further Promote Power Battery Recycling

On March 22, SAIC and Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as “Ningde Times”) signed a memorandum of understanding on strategic cooperation. The two sides intend to further deepen cooperation and discuss jointly promoting the recycling and reuse of batteries for new energy vehicles.

This is not the first cooperation between the two parties. According to the prospectus disclosed in the Ningde era, Ningde Times and SAIC Motor Investment Management Co., Ltd. jointly established SAIC Power Battery Co., Ltd. and SAIC Times Power Battery in June 2017. System Co., Ltd., the two companies registered capital of 2 billion yuan, 300 million yuan. At that time, SAIC and Ningde announced the cooperation in building a highly intelligent, green and environmentally friendly new energy vehicle advanced battery and battery system production base.

According to statistics, in the Ningde era, which was established in 2011, the sales of power battery systems in 2017 reached 11.84 GWh, ranking first among global power battery companies. SAIC Motor Corporation is the largest automotive listed company in the domestic A-share market. In 2017, SAIC's total vehicle sales exceeded 6.93 million units, an increase of 6.8% year-on-year, far exceeding the average industry growth rate of 3.3%, and its leading position in the industry was highlighted. SAIC's new energy vehicle sales rose by 140% year-on-year, far higher than the average growth rate of about 50% of China's new energy vehicle market.

For this cooperation, the two leading companies will go hand in hand to make full use of their respective leading advantages in new energy R&D, manufacturing, and services, and jointly promote the better and faster development of the domestic power battery recycling industry. SAIC said that the two parties will work together to create a complete closed-loop new energy industry chain, which will not only effectively promote the healthy development of the new energy industry, but also effectively promote the national recycling economy and ecological civilization construction.

The data shows that as of the end of 2017, the cumulative number of new energy vehicles nationwide has reached 1.53 million, and it is expected to exceed 5 million by 2020. With the rapid growth of the number of new energy vehicles in China, the importance of the recycling and reuse of power batteries is becoming increasingly apparent. From the perspective of economic development, the waste power battery recycling business of new energy vehicles has a broad market prospect; from the perspective of environmental protection In view of this, more and more used power batteries will have a serious negative impact on the ecological environment.

It is reported that at the two sessions of this year, Chen Hong, deputy to the National People's Congress and chairman of the SAIC Group, put forward the "Proposal on Regulating New Energy Vehicle Recycling and Power Battery Gradient Utilization and Promoting the Construction of Ecological Civilization," which includes: the establishment of a new energy vehicle recycling system. Qualifications; the establishment of power battery cascades to use the company's technical access threshold; unified planning and construction of new energy vehicles, recycling, dismantling, power battery cascade utilization, power battery recycling park; combined with social credit system, the owner responsible for the responsibility of the battery recycling power In the subsidy policy, factors that increase the effective recovery of the power battery are considered; the R&D subsidies for power battery cascade utilization are given.

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