Jiesin Power: China's first battery joint venture enterprise layout

Gasgoo.com: As a joint venture between A123 and SAIC, Jiexin Power can be described as a three-way win-win situation. In your opinion, what kind of situation does this bring to the development of these three companies, and in particular to the development of the Czechoslovakia?

Li Yuan: U.S. A123 invested in Jiexin Power Battery System Co., Ltd. First of all, it is optimistic about the Chinese market. Second, it is optimistic about SAIC Motor’s leading position in the Chinese automotive industry. Third, it is also optimistic about SAIC's new energy vehicles. Fourth, it also attaches great importance to SAIC's investment. Officially spotted these aspects, A123 company is willing to work together with the SAIC Group, the formation of Jiexin Power Battery System Co., Ltd..

At present, SAIC Motor's plan for the development of new energy vehicles is very clear. For new energy vehicles, the status of the power battery is equivalent to the engine, and SAIC needs to control such a very core component.

At the same time, Jiexin Power, a power battery company that is a joint venture between A123 and SAIC, has also gained tremendous opportunities for development. As the first joint venture battery company established in China, SAIC Motor was controlled by SAIC. This gave other companies a precedent and provided them with experience in how to obtain a controlling stake in the process of setting up a joint venture in the future. In terms of technology, A123 has advanced technology and materials in the world, especially its cathode material is very professional, which has played a decisive role in its core performance.

We Jiexin Power through A123 company, access to advanced battery technology, for future development and operation provides a good technical support. Judging from the current situation, Jiexin Company is very smooth in the operation process.

Gasgoo.com: Jiexin Power is a successful joint venture case for new energy battery. What do you think are the key factors in the successful joint venture between A123 and SAIC?

Li Yuan: First of all, SAIC Group has abundant capital and advanced technology. From a technical perspective, I think that when talking about cooperation, the two sides can't understand technology completely and use money to buy each other's technology. If you have a technological advantage, on the one hand, you can prevent the loss of large amounts of money; on the other hand, it also effectively reduces the risk that the other side will sell you ordinary technology as a core technology at a high price. If the company itself has a high technical threshold, the technology that the other party can sell to you is also relatively high-end, so it is easy to control the situation and grasp the other party's core technology.

Second, the success of the cooperation between the two parties is also related to the reputation of the company and the market. If it is not because SAIC is the leading brand in China's auto industry, it will not be able to hold the Jiexin power with a 51% share; and relatively speaking, the US investment is also focused on the Chinese market and the SAIC Group's share in the Chinese market. In the event that both parties have certain advantages, the joint venture between the two parties is an equal exchange, which will also make the contract more favorable to the Chinese side.

In the end, SAIC set up a professional team to run the Jiexin power, which is a key factor. During the negotiation process, A123 company also saw the professional qualities of Chinese team members. It can be said that this high-quality team has a decisive role in the success of the joint venture company.

Gasgoo.com: At present, what are the advantages of the Czechoslovakia in the situation where domestic power battery manufacturers are surging?

Li Yuan: First, we have the support of SAIC. Since the establishment of the company, there have been fixed projects. This advantage makes us different from many battery factories, or those risky investments. Secondly, our joint venture parent companies, SAIC and A123, are very good both in terms of technology and company reputation. Therefore, Jiexin Company has good market confidence and prospects, and it is easier to gain market recognition in terms of product quality, and it will be more standardized in operation.

In addition, A123's advanced technology brings some advantages to the company. A123's technology and product formulas are globally leading, so the products of Jiexin Power also have high popularity and strong market appeal. Therefore, we basically have no market concerns. With the continuous development of the market, after we seriously assess the relationship between risk and investment, we will certainly vigorously promote the market. Market share is not a big problem for us.

Gasgoo.com: What is the future development plan of Jiexin Power? What are the expectations for the future market?

Li Yuan: Our future plans will be decided based on the projects and technical raw materials we have obtained and the future market development. Because the predictions and predictions for the new energy market are quite different, of course, some are very optimistic. The estimated market has exceeded the original 10% and 20%, and even reached 50%. At present, my optimism for the future development of the new energy market is basically a multiple of growth. At the same time, we will have a good grasp of our development pace.

As for the expectations of our future market, I think we are not simply pursuing profit maximization. We will also select customers not only to achieve a win-win result in market interest, but also hope that both parties can also benefit from each other's reputation. So we will seriously assess the potential of our customers and the future of our products. In this respect, we are more concerned with OEMs and certainly not rule out other good opportunities.

( Source: Gasgoo.com )