2003: Starting with Foreign Trade

Chapter 200 Lithium Battery Layout (Part Two)

The person in charge of receiving Zhao Jinsheng and Tan Jincheng was a chief engineer surnamed Lü.

He didn't specify what business he was in charge of, but Zhao Jinsheng addressed him as Chief Engineer Lü. Speaking of which, who is Leader Gu? He seems to have powerful connections. He was the one who helped make the arrangements for this visit.

Chief Engineer Lü led Tan Jincheng and Zhao Jinsheng on a tour of some of the places that could be visited, and also introduced the working conditions there. Contrary to Tan Jincheng's expectations, the research institute did not require overtime work every day.

There are quite a few employees who arrive and leave work on time every day. Unlike private factories like Flash Technology, where most employees are single young people, most of the employees here are already married.

Of course, every year some graduates are assigned here, and they are all from prestigious universities with exceptionally strong academic backgrounds.

Due to the special circumstances, there was limited space for Tan Jincheng and his entourage to visit, so soon both sides sat down at the desk and officially began discussing the agenda of the meeting.

"How did Xiao Tan come up with the idea of ​​getting into lithium batteries? The investment cost for lithium batteries is very high. Shouldn't companies be thinking about reducing their burden?" Chief Engineer Lü asked with some curiosity.

An electric vehicle manufacturer, with lead-acid batteries currently dominating the market, is considering developing lithium batteries. From a purely business perspective, this is actually a case of losing more than it gains.

Although lithium battery technology is currently considered relatively mature, it will still take some time before it can be commercially used on a large scale. For example, it is not yet used in the electric vehicle industry; it is more commonly used in mobile phones.

Lead-acid batteries already have very mature technology and processes. Even if you don't buy them from suppliers, building your own lead-acid battery factory will require less investment and yield faster results than lithium batteries.

"Of course, we're considering the future," Tan Jincheng said with a smile.

From the perspective of electric scooters, lead-acid batteries are relatively inexpensive, cost-effective, easy to maintain and recycle, have good discharge capacity at low temperatures, and are also quite safe.

This is its advantage, but its disadvantages are also very obvious: it is large and requires a lot of space, increasing the burden on the vehicle; the battery capacity is limited, resulting in a shorter driving range; and the lifespan is also short, generally less than 400 deep charge and discharge cycles, with a lifespan of about two to three years.

Lithium batteries perfectly solve these shortcomings of lead-acid batteries, but they also have their own disadvantages, namely high cost, virtually no recycling value, and lower safety compared to lead-acid batteries.

As for environmental issues, both types of batteries have them. Lead-acid batteries produce heavy metals that easily pollute the environment, but lithium batteries have no recycling value, which is also a major drawback of environmental protection.

However, Tan Jincheng has his own views on environmental protection. Whether from the perspective of capitalists or ordinary workers, it is unnecessary to starve while living amidst clear mountains and green waters.

Environmental protection is important, but having enough to eat is even more important.

"A simple consideration of the future won't convince me. Cooperation is important, but we also need to see your determination and your vision for the future of lithium batteries. This investment is long-term and substantial, and we don't want to stop halfway through."

When a research institute wants to share its research findings, a private enterprise might just be doing it for publicity, but they are always considering long-term interests.

The necessary funding is one aspect, but the most important factors are the vision of the private company's leader and whether they have the patience to carry out the project.

"Okay, actually, I'm not just making lithium batteries for my own electric vehicles. I'm more optimistic about their application in mobile phone batteries and future new energy vehicles. I think these two areas are major trends in the future, which is why I had the idea of ​​making lithium batteries."

I can't tell people I want to build cars right now, lest they think I'm clueless. But it's okay to reveal some of my plans in advance. Batteries are an important component for both mobile phones and cars.

By thoroughly researching lithium batteries and mastering their core technologies, FlashPower can supply mobile phone and car manufacturers even without manufacturing cars in the future. This would give FlashPower a second major business segment and prevent it from becoming a single business entity.

A single business is always more vulnerable to changes in the market environment. For any company with its own core business, diversification and conglomeration are inevitable for its development.

FlashTech's current business is limited to the assembly, production and sales of electric vehicles. This year, it will open directly operated stores in major first- and second-tier cities across the country. This part of the business can only be considered a derivative business of assembly, production and sales, and not a second business.

By producing and selling electric vehicles, FlashTech aims to achieve rapid development, with profits invested in lithium battery research and development. Initially, it can act as a battery supplier for mobile phone manufacturers, similar to BYD's "OEM" model.

Later on, they can get involved in the research and development and production of automotive batteries, gradually moving from lithium batteries into the automotive industry.

Lithium batteries are more than just lithium batteries; the industry involved is enormous, encompassing various mineral resources, the research and development of new alloy metals, and even fields like photovoltaics and wind power generation—it's a vast industrial chain. By focusing on just one aspect, FlashTech could establish a foothold nationwide, rather than simply being a small electric scooter assembly plant.

Grouping and diversification do not mean unsustainable expansion. Benefiting from his memories of his past life, Tan Jincheng's every step to date has been traceable and has a clear goal.

Starting with garment export to earn the first pot of gold for establishing a factory is similar to how Wahaha and Nongfu Spring initially made money by producing health products. The health product industry in the last century was similar to the foreign trade industry today, where money could be made very quickly.

Tan Jincheng amassed a fortune of over 100 million yuan through foreign trade in just over a year, which is not an exaggeration in today's world. You should know that Zhong, the richest man in Nongfu Spring, earned tens of millions of yuan in profits through health products back when people admired those with 10,000 yuan in assets.

In the era when people had only ten thousand yuan, earning tens of millions of yuan in profit a year was truly impressive and outrageous!
With initial capital, they built a factory to produce electric scooters. Taking advantage of the high profits during the rapid development of the electric scooter industry, they then entered the lithium battery industry, expanded the company's scale through the lithium battery industry, and entered more related industries, thereby establishing a complete battery industry chain.

With its own battery business, it can start manufacturing cars!
Today's conversation was attended only by Chief Engineer Lü and Zhao Jinsheng. Tan Jincheng will reveal some of his plans beyond car manufacturing, and also give a brief overview of his views on future economic and industrial development trends.

In terms of technical skills and the rules of the system, Tan Jincheng is definitely no match for Chief Engineer Lü and Zhao Jinsheng. However, in his previous life, he had been an entrepreneur for many years and had the advantage of knowing everything about leeks, from astronomy to geography.

When it comes to the development of some industries, they can still offer some refreshing perspectives.

Besides persuading Chief Engineer Lü, the purpose of doing this was also to convey some of his abilities to his superiors through Zhao Jinsheng. Tan Jincheng was very clear that no matter how the talk with Chief Engineer Lü went or what the outcome was, Zhao Jinsheng would definitely report what he had said to his superiors.

The real economy cannot function without government support. Although the government has already taken the plunge and you have become one of the lucky ones, if you want long-term cooperation and mutual benefit, you must at least present some convincing viewpoints and demonstrate your capabilities.

And so, the conversation went from 3G to 4G, then to the future direction of mobile phones, and from lithium batteries to the future trend of new energy vehicles. The conversation lasted for a whole day.

For high-end talents like Chief Engineer Lü, what Tan Jincheng said is not particularly new. Although it is somewhat advanced, it is technically feasible. In the past two years, although keypad phones still dominate the mobile phone market, some lithium battery technology has already been applied to mobile phones.

The construction of 3G networks is no secret; Zhao Jinsheng can even talk about it. Technological advancements are driving changes in consumer products and are a major trend for the future. Therefore, it's not impossible for lithium battery technology to be widely used in mobile phones in the future.

It could even be said to be highly probable.

The biggest features of lithium batteries are high voltage and high energy density, which means they can store a lot of electricity. They also have balanced discharge, almost no self-discharge, and no memory effect. They can be charged whenever needed, making them almost a must-have for mobile phones.

Chief Engineer Lü is engaged in research in this field, and his understanding of the characteristics of lithium battery technology is naturally much deeper than that of Tan Jincheng. He is not someone like Tan Jincheng, who knows nothing, and cannot be fooled.

"Why does Mr. Tan think that new energy vehicles are the future trend of our country's development? You know, gasoline vehicles are currently the mainstream in the market, and we can't see any advantages of new energy vehicles."

Unbeknownst to them, Chief Engineer Lü changed his address for Tan Jincheng from "Little Tan" to "Chief Tan," which caught the eye of Zhao Jinsheng, who was sitting to the side with little opportunity to speak.

Compared to Tan Jincheng's insensitivity to the way he was addressed, Zhao Jinsheng, who worked within the system, understood this change all too well.

"This is promising," Zhao Jinsheng thought to himself.

At least it's a good sign, proving that Xiao Tan's words today were taken seriously by the other party.

"It's very simple. Break through the technological blockade and achieve independent research and development in our industrial chain, just like the electric scooter we have now," Tan Jincheng said with a smile.

"Huh? What do you mean?" Chief Engineer Lü couldn't help but ask in surprise.

“Currently, all the cutting-edge technologies for gasoline-powered vehicles are in the hands of foreigners. We can only earn a little bit of scrap. The automotive market is so big. If we want to earn more, we must have our own core technologies. Since I can't play in the game you set up, I can set up my own game. Moreover, Tesla is also doing research in this area. I believe Chief Engineer Lü should be able to find out.”

Zhao Jinsheng was also secretly shocked. It was not surprising that they could think of these things, but Tan Jincheng was 20 years old and had such a clear understanding. His political awareness was not low.

To have such a clear understanding and to earn money through such diligence: "This kid really has some skills; it's not just about luck."

(End of this chapter)