Competition in the new energy industry intensifies, automotive companies to build their own battery factories into a trend

Before answering this question, let's take a look at the current cost of electric vehicles and batteries as a percentage of the total cost of the vehicle. As you can see from the chart below, power batteries account for about 40% of the cost of a car, which means that for a 100,000 car, batteries may account for 40,000. National new energy subsidies, a large proportion of which is used to subsidize the cost of batteries. This is why the state subsidy policy clearly stipulates that the total state subsidy cannot exceed 1,200 yuan/degree battery capacity of electric vehicles, that is, if the total battery capacity of an electric vehicle is 50 degrees, the largest state subsidy for the vehicle will only be 60,000 yuan, here is the 2018 subsidy policy, I believe that in 2019, with the battery cost decline, this value will continue to explore. Subsidy recession is bound to be the trend, in the post-subsidy era, who grasps the core technology, who has a cost advantage, will certainly take the lead, for electric vehicles, want to have a cost advantage, batteries must be won. If the batteries continue to be purchased from suppliers, the following problems still exist: 1. The cost is uncontrollable; 2. Battery supply cannot be guaranteed. If you build your own PACK plant, there will be no problem. It is important to note, however, If you want to build your own PACK plant, the initial investment will certainly be very large. If you do not have a certain sales volume for cost amortization, general enterprises will not be able to support it. This is actually the same reason as charging piles. This is why most enterprises will choose to outsource the charging piles on board, and only consider building their own charging pile production line when it reaches a certain level. Small Competition in the new energy industry will intensify the trend of auto companies building their own battery plants, but only if sales of new energy vehicles have taken shape.