Rebirth 2004: I can make money by writing.

When Wang Chuanfu invited him to visit, Hao Qiang had already started thinking about possible directions for cooperation.

The research and development results of super lithium batteries are the trump card in Hao Qiang's hand. He does not want to make it public for the time being and it is not convenient to disclose it.

At present, Future Technology Group has cut off BYD's path to independently developing high-performance lithium iron phosphate batteries, leaving BYD with only the choice of purchasing finished products or seeking technical cooperation, such as technology licensing or technology buyout.

Hao Qiang once considered acquiring a stake in BYD through equity exchange for technology licensing.

According to the development trajectory of the previous life, in more than ten years, BYD's stock price has increased by about twenty times. This rate of return is quite good, but the cycle is relatively long.

Interestingly, due to the influence of Future Technology Group, BYD’s future market value may not be able to reach the level of its previous life.

Currently, BYD's market value is approximately HK$30 billion, down about 10% from when Future Technology Group announced its entry into the new energy vehicle market. Wang Chuanfu holds a stake between 28% and 300%.

However, even if Wang Chuanfu agrees with the equity swap, other shareholders may not agree.

In addition to equity exchange, there are many other ways to charge for technology licensing, such as one-time fees, royalties, annual fees, cross-licensing, minimum sales guarantees, tiered rates, etc., as well as a mixture of the above charging methods.

Each model has its advantages and disadvantages, which need to be weighed based on the interests of both parties and long-term strategies.

Hao Qiang pretended to think for a moment, then replied, "Yes, the energy density of our lithium iron phosphate battery pack has indeed reached the level you mentioned, or even exceeded it.

Technology licensing is possible, but I wonder how Mr. Wang would like to cooperate?"

Wang Chuanfu's face lit up with joy as he said, "Thank you very much, Mr. Hao. We prefer a royalty or annual fee model, and of course, we hope the price is reasonable."

Royalties typically range from 1% to 10% of finished product sales, with the specific proportion depending on industry characteristics, technological advancement, competition, and technology value.

The sales volume here refers to the selling price of the battery pack, not the price of the entire vehicle.

If BYD sells this price to other car manufacturers, it will be the factory price of the battery pack, and it cannot be lower than the factory price of Future Technology Group;

If it is a self-sold car, the terminal selling price of the battery pack will be higher than the factory price.

Hao Qiang thought for a moment and said, "Mr. Wang, the cost may be quite high. I'm afraid you may not be able to accept it."

Wang Chuanfu seemed very sincere: "It's okay, Mr. Hao, just say it directly. If it's suitable, we can cooperate."

Hao Qiang nodded and began to explain the conditions: "My proposal is: if it is an exclusive license, 5% of the battery pack sales price will be used as a technology licensing fee, which includes technical services and training costs until normal production begins.

We can discuss follow-up training and other technical services after production, as these are minor issues."

Except for BYD, which produces lithium iron phosphate batteries in large quantities, the production capacity of other peers is not large.

As for the ternary lithium battery, Hao Qiang does not plan to authorize it, otherwise the price will be very high and others cannot afford it.

He then added: "It must be officially put into production within three years, and the annual production capacity after production must not be less than 2GWh.

If the annual production capacity exceeds 10GWh, the rate for the excess amount will be 4.5% of the battery pack sales price, and the fees will be settled quarterly.

In addition, the down payment signing fee is 50 million yuan, which can be deducted from the technology licensing fee after mass production."

Hao Qiang quickly calculated in his mind: According to the pricing standards of Future Technology Group, the factory price of batteries per kilowatt-hour is 833 yuan.

This means that 1GWh of battery production capacity will generate technology licensing fees of 4165 million yuan.

If the battery capacity of each new energy vehicle is 50 kWh, then each vehicle will need to pay a lithium battery technology licensing fee of 2082.5 yuan, which is not a small amount.

In fact, technology licensing fees are only a part of the entire cooperation.

Since you are using the technology of Future Technology Group, it is best to buy the corresponding production equipment.

A set of equipment with an annual output of 2GWh was priced at 300 million yuan, and Future Technology Group made a net profit of 100 million yuan.

Of course, it is not necessary to buy equipment. BYD is independently developed. If it cannot be officially put into production within three years or fails to meet the standards, it cannot be blamed on Future Technology Group.

The money must be paid!

Hao Qiang also explained this to him clearly.

As for the down payment of 50 million yuan, it is to protect the interests of Future Technology Group and avoid losses caused by the other party's failure to go into production after the technology transfer.

After hearing Hao Qiang's conditions, Wang Chuanfu frowned slightly and sighed that the price was really not low.

After thinking for a moment, he asked, "Mr. Hao, what about the technology upgrade?

Since your company can mass-produce high-performance lithium iron phosphate batteries, you must be developing battery technology with even better performance, right?

Hao Qiang calmly replied: "Technology upgrades do require renegotiation. The specific ratio depends on the characteristics of the industry, technological advancement, competition and technological value, but the difference should not be too big.

The equipment does not require major modifications. If the cost exceeds 20% of the original equipment cost, our company will cover the excess."

Technological upgrade refers to the same small category of technology. If it is a ternary lithium battery, it falls within the scope of another technical authorization.

Hao Qiang didn't intend to cheat him, so he explained this to him clearly.

Some companies did not explain the technology upgrades, nor did they specify the equipment modification costs after the technology upgrades.

As a result, in order to upgrade the technology, new equipment had to be purchased at an additional cost.

If you don't buy it, the original technology will be left behind.

Wang Chuanfu pondered for a moment, nodded slightly and said, "This matter is of great importance. I need to discuss it with other shareholders."

Hao Qiang's offer was not low, but it was reasonable. At least the other party was willing to license the technology and reminded him of some key issues that were easy to miss.

However, Wang Chuanfu realized that there were still many details that needed further discussion.

For example, if Future Technology Group develops more advanced technology, will this licensing agreement still be valid?

They also have ternary lithium batteries. Will they deliberately not improve the technology of lithium iron phosphate batteries?

It is necessary to consider whether Future Technology Group will use its technological advantages to lower prices and engage in vicious competition.

Hao Qiang expressed his understanding of Wang Chuanfu's concerns: "Well, yes, this does require careful consideration."

In fact, Hao Qiang knew very well that if BYD wanted to make a difference in the field of new energy vehicles, they had almost no choice.

Unless BYD can circumvent the patent coverage of Future Technology Group and independently develop lithium battery technology with better performance, they must cooperate.

This negotiation not only concerns the interests of the two companies, but also involves the future landscape of the entire new energy vehicle industry.

In its previous life, BYD was the top seller of new energy vehicles.

But now that Future Technology Group has intervened, it’s hard to say.

Wang Chuanfu and Hao Qiang continued chatting for a few minutes, and then left Future Technology Group.

On the way back to the company, Wang Chuanfu was in a heavy mood.

Future Technology Group has more advanced lithium battery technology!

Their company's lithium iron phosphate battery technology is far behind others.

Alas, the situation is not in our favor!