From knock-off old-man's electric vehicles to industrial giant

Chapter 80: "Producing One Generation, Researching One Generation, and Reserveing ​​One Generation"

“Mr. Xu, I’m thinking of investing five million to jointly build a store with the manufacturer… What do you think of the position of first-level provincial distributor?” Zheng Guozhao asked hesitantly.

Five million is a small amount, but it's all I can come up with for the time being.

If all else fails, he can take out a loan.

"no problem."

Xu Yi agreed without even thinking.

He actually values ​​Zheng Guozhao's personal distribution capabilities more.

Without his efforts, the initial expansion of the elderly-friendly vehicle market wouldn't have been so rapid.

The hybrid model of direct brand operation, although the manufacturer is in control of everything.

However, the management at the lower levels, as well as the execution and supervision of specific activities, still require the division and implementation from the first-level provincial agent to the second-level city general manager in each region.

Therefore, whether in the early stages of development or in the later stages, we need people who can get things done.

Hear the words.

Zheng Guozhao was overjoyed!
"However, there is no pressure to expand within the province at the moment. Instead, the main focus is on cities with license plate restrictions and first-tier cities. You can go there first to be responsible for the construction and management of new brand stores."

Xu Yi added with a smile.

This part of the province is their factory's base, taking advantage of local resources and geography, making expansion effortless. Talented people like Zheng Guozhao can be put to good use by being placed in places where he is needed more.

...

Years later.

Looking back on this decision that changed his life, Zheng Guozhao still feels completely at peace.

He expressed these sentiments in front of the media cameras.

"Back then, if it weren't for Mr. Xu personally appointing me, I might still be selling electric cars for the elderly at the car dealership."

"Of course, there's nothing wrong with selling electric vehicles for the elderly, but for me, achieving financial freedom and dominating the business world would open up even greater possibilities!"

……

It took several days to handle and complete the cooperation matters with the distributors.

finally.

Xingchen Auto signed agreements with forty to fifty cooperative dealerships in the first batch, distributed in different second- and third-tier cities, including a few county towns.

Subsequently.

Good news has come from the battery R&D team.

After intensive research and development, the improved A2 battery cell solution has been verified and has officially entered the testing phase.

Currently.

The "Star Mini" uses the first-generation A1 battery cell, which is a custom battery cell developed in cooperation with Vaillant Battery Factory.

The formula for the second-generation A2 improved battery cell was developed by StarCraft's internal R&D team.

As they continue to hire.

The battery R&D team at Xingchen Automotive has grown from a few dozen people at the beginning to more than one hundred people.

The battery R&D team is divided into five technical groups, plus one testing center.

The core R&D personnel were poached from BTR Group and Shanshan Group, leading lithium battery material suppliers.

They all have at least five years of experience in LFP/NCM R&D and team building.

Since becoming financially well-off, Xingchen Motors has become even more ruthless in poaching talent.

Taking into account the premium costs of poaching talent, personnel salaries, equipment investment, etc.

The total R&D cost for the quarter was almost on par with that of the industry's top battery suppliers.

In addition to the standard 30% salary premium.

Xu Yi also set up project bonuses for each sub-department of battery R&D, with a total bonus of 30 yuan for achieving a cost reduction target of more than 20%.

of course.

The return on investment for doing this is also very high.

The overall R&D efficiency has skyrocketed.

The key is that when encountering bottlenecks during the process, breakthroughs are often achieved in a very short time.

……

Battery research and development department.

"Mr. Xu, we expect our A2 battery cells to be officially verified in about a month, after which we can try to arrange trial production..."

"I am proud," said Dong Yuxuan, the project manager for battery research and development.

Before them lay a row of brand-new battery cell samples, their latest research and development achievements. "The current small-scale testing phase has been completed, and the performance testing is next, followed by safety testing and cycle life testing."

For our self-developed A2 battery cells, we mainly focus on improving the material formula.

The LFP cathode uses ferrous sulfate (FeSO₄) instead of ferrous oxalate...

Significantly improved LFP tap density...

The negative electrode material uses artificial graphite, replacing some of the natural graphite...

......"

Current cost reduction strategies for lithium iron phosphate batteries mainly focus on structural improvements and material formulation improvements.

The main improvement to the A2 battery cell is in materials.

Because the positive electrode material of the battery accounts for almost 40% of the cost.

The price of ferrous oxalate is about 8000 yuan/ton, while industrial-grade ferrous sulfate is only 3000 yuan/ton.

By optimizing the synthesis process, almost identical performance can be achieved.

Besides.

It is natural graphite, which accounts for 20% of the cost of anode materials.

In the current industry, natural graphite is expensive, while high-purity synthetic graphite is already in mass production and supply, with lower procurement costs, and can serve as a substitute.

The battery R&D team's solution is to replace 30% of natural graphite with artificial graphite, thereby reducing the cost of anode materials.

of course.

There were some difficulties along the way.

For example--

The reason why industrial-grade ferrous sulfate alternatives are not widely adopted in the industry is that...

The main problem is that ferrous sulfate itself has too many impurities, which will lead to poor conductivity and short cycle life of the battery cell.

Therefore, more efficient purification processes are needed for precise purification.

This is something that most second-tier battery manufacturers do not possess.

Through in-depth research, Xingchen has improved the "pre-oxidation process" and "graded precipitation process" to achieve a purity of up to 99% for industrial ferrous sulfate, fully meeting the requirements of high-energy-density lithium iron phosphate battery cells.

……

"The final cost reduction of A2 cells is expected to reach 22%."

Without sacrificing the 1500-cycle lifespan, the system energy density of the entire battery pack will be increased to 110Wh/kg.

That is, the upstream level of the current top tier in the industry.

The "ferrous sulfate" solution is generally mature in the industry, but it will take at least one to two years.

Currently, only a few leading companies in the industry have the corresponding technological reserves, while Xingchen Automotive has already obtained verification results.

Once mass-produced and installed in vehicles, it will essentially be invincible in the microcar market.

Even disregarding national subsidies, the gross profit margin for the entire vehicle will be astonishing—far ahead of the competition!
Excluding a few leading automakers with independent R&D and battery production capabilities.

Other competitors that want to compete with Xingchen Auto at the same price point are basically just sitting on the sidelines.

You can't even produce your own battery packs, so what are you going to use to compete with me?

...

"It seems our internal celebration can begin ahead of schedule."

Xu Yi smiled slightly. The development of the A2 battery cell was something that was expected.

It's worth noting that the growth rate of battery technology in recent years has been nothing short of phenomenal.

Companies like CATL and Guoxuan High-Tech...

With its relentless investment in research and development, the speed of its overall rise is, in the eyes of foreign companies, nothing short of phenomenal!
This also includes substantial government subsidies and a massive green light given to the new energy industry, with the entire nation pooling its resources to support it.

It's one thing for a company to have some kind of cheat code.

All of your top-tier domestic battery manufacturers are "fake" batteries, how can you compete like this?

and so.

Being ahead domestically for six months to a year is not enough to celebrate.

If the leading companies suddenly make a breakthrough or release their R&D results ahead of time, the gap will be closed.

To achieve a significant lead.

We must "produce one generation, research and develop one generation, and reserve one generation"!!

……

(End of this chapter)