Chapter 909: A New Way Out Forced by High Prices, a Niche Route Becomes Popular

If you want to check the situation of an American company, it may be inefficient for Yingang Trading or Nanshan companies to check it themselves.

But after Hu Yingang told Zhao Siyu about the strange order, he immediately asked Pan Jun to help find relevant departments to assist in the investigation.

In the end, the situation was quickly figured out.

Although some information is not particularly clear, the general situation of each chain is clear.

"Mr. Cao, from the current situation, this is completely a white glove company established by a powerful figure from a relevant department in the United States."

"Tens of millions of dollars of gallium nitride power components should be used on the new generation of electronic reconnaissance ships produced by Northrop Grumman."

"I estimate that the performance of the 915 electronic reconnaissance ship in the southern waters has brought them a great stimulus."

After Zhao Siyu figured out the situation, he immediately went to report to Cao Yang.

Although I had thought about controlling the export of gallium nitride power components of Nanshan Semiconductor before.

But these things must be divided into different situations.

If the United States has not been able to produce GaN power components, then it must use various methods to prevent its products from being bought by American companies.

But now American companies can actually produce GaN power components, but the production efficiency is lower and the cost is higher.

In this case, Nanshan Semiconductor's export restrictions will naturally become much more flexible.

Anyway, regardless of whether this money is to be earned or not, the US electronic reconnaissance ships will eventually use GaN power components.

In this case, it is better for Nanshan Semiconductor to earn this money.

The profit margin of this kind of export order is definitely much higher than that sold to Aerospace Science and Technology and AVIC.

"They are quite quick."

Although Cao Yang was a little surprised by what Zhao Siyu reported, he didn't think it was strange after thinking about it.

People who are used to being the world's boss will never easily allow others to challenge their status.

Now that China is rising rapidly in the field of electronic reconnaissance ships, the United States must make some noise.

Although the electronic reconnaissance ship that was paralyzed during the exercise is not an advanced product in the American system, they have more powerful warships that did not participate in the exercise.

However, considering the results of the electronic confrontation in that exercise, even if they sent their most advanced electronic reconnaissance ship, they did not have the confidence to win.

It is not easy to even draw a tie, at most they will not lose so badly.

This situation is obviously not acceptable to them.

Although the situation of the 915 electronic reconnaissance ship is kept secret, if the United States is determined to find out, it can still find out some information.

So they immediately began to use gallium nitride power components on a large scale to produce related equipment and reconstruct an electronic reconnaissance ship, which is inevitable.

"Mr. Cao, during this investigation, we also found an interesting thing."

"That is, a company involved in this resale trade had previously purchased a lot of drones from DJI, and many of these drones were sold to relevant departments in the United States."

"The most exaggerated thing is that the final sales price of those drones is almost ten times the export price of DJI."

Zhao Siyu did not beat around the bush and directly told Cao Yang all the information he had found out.

Of course, he did not tell this matter as a joke.

But he wanted to let Cao Yang understand through this matter that these white glove companies in the United States import parts from Nanshan companies and then resell them to relevant departments. This kind of business seems unnecessary to be eliminated.

After all, this is a win-win result for Nanshan companies and American white gloves.

Anyway, even if these things are not purchased from China, they can actually produce similar products in their own country.

It's just that the cost of procurement may be higher.

It seems that Nanshan companies have helped relevant departments in the United States save money, which cannot be done.

In fact, taking this opportunity to completely suppress the relevant industrial chain in the United States will have a great impact in the long run.

In the future, if people find out about the situation of the white glove company and then think about switching to domestic procurement, the difficulty will definitely be higher than it is now.

"In this case, then Yingang Trade will continue its business as usual."

"However, in terms of price, the price given to the United States in the future can be appropriately increased."

"Anyway, even if the price doubles, it is still a very cheap price for them."

"There is no need to leave money unearned."

Now squeeze the survival space of the other party's gallium nitride power component companies and reduce their demand.

If Cao Yang suddenly interrupts the supply of related components a few years later, it will definitely make the other party uncomfortable.

Of course, when to do this and whether to do it must be based on the needs of the development of the situation.

...

Throughout April, Cao Yang and his team focused a lot of their attention on the 915 electronic reconnaissance ship and a series of related things.

However, for many people, they are not in the mood to pay attention to these things.

Because this month, the prices of raw materials used in power batteries such as lithium carbonate, lithium hydroxide, nickel, and cobalt have skyrocketed.

Unlike the previous increase of several points, these materials generally rose by 20% to 30% this month.

For a raw material, it has risen by 20% to 30% in one month, which is definitely an exaggerated increase.

As the most expensive component in electric vehicles, raw materials account for the largest proportion of the cost of power batteries.

This increase in the selling price by several percent immediately made many people feel the crisis.

"Boss Lin, although the price of raw materials has risen sharply this month, no one is sure whether it is sustainable."

"Is it too early to discuss price increases now?"

As the deputy general manager of Changan Automobile, Zhang Lin is discussing the price increase of batteries with the visiting general manager of Nanshan Battery, Lin Cheng.

In the past, the prices of various materials were relatively stable. After everyone decided on the price of the entire battery pack, they basically would not adjust the price.

Of course, the annual price reduction negotiation effect is reflected.

In this case, Nanshan Battery proposed to adjust the price of raw materials for batteries, and many companies would definitely not be willing to do so.

After all, the so-called price adjustment is actually a price increase.

Even if they know that the prices of related raw materials in the market are indeed rising, they are not happy.

No company is willing to see its costs rise happily.

"Mr. Zhang, according to our current plan, it is recommended to adjust the material price of batteries once a quarter."

"For example, the price of the third quarter will be adjusted in early July based on the average price of the second quarter. Similarly, the price of the previous quarter will be used to adjust the material price every quarter."

"When it rises, we will follow the rise; when it falls, we will also follow the synchronous price reduction."

"In this way, it is a reflection of market price fluctuations."

Since Lin Cheng has officially put forward the plan and is ready to take the upper route and communicate directly with Zhang Lin, who is in charge of the specific business, he naturally hopes that this matter will be finalized as soon as possible.

Otherwise, the connection between Nanshan Battery's sales and Changan Automobile's procurement will probably not produce any results after several months of discussion.

Others can use various methods to delay, or assign you homework, and drag the time for a long time.

This is obviously not the situation that Nanshan Battery wants to see.

According to Nanshan Battery's estimates, the rise in the prices of raw materials such as lithium carbonate is definitely not something that happened this month.

In the next one or two years, the prices of these raw materials may continue to rise.

Even if there is a decline in the middle, it is impossible to return to the low price in the past.

After all, the development speed of new energy vehicles is too fast.

Objectively, the supply of related raw materials is indeed a bit tense.

In addition, there is capital to add fuel to the flames, and the final impact will be even greater.

Of course, Lin Cheng will definitely not tell Zhang Lin all this information.

"Mr. Lin, let's talk business. Normally, we have already negotiated the price of power batteries. Whether it is an increase or a decrease in material prices, it is Nanshan Battery's own profit and loss."

"Now that the price has risen, you ask for market linkage with material prices. It seems fair, but it may not be the case in fact."

"If the material price falls sharply this year, I believe Nanshan Battery will definitely not take the initiative to propose market linkage with material prices to provide us with additional price reduction contributions, right?"

Zhang Lin said a little unhappy.

In his opinion, Nanshan Battery's approach is a bit excessive.

Of course, this kind of thing is completely a matter of the buttocks deciding the head.

From the perspective of Nanshan Battery, the price of raw materials in the market has risen, and I asked for an adjustment in the price of the battery pack, which is also a normal market behavior.

We can't provide you with parts at a loss, right?

"Mr. Zhang, in fact, when we first quoted, we had already made clear the material timing of the various raw materials used at that time."

"And we have a special note that Nanshan Battery needs to adjust the cost of the battery pack according to the changes in the market raw material prices."

"This is also a common situation in the industry."

"Just like the hot stamping parts provided to you by Yangcheng Huaqiang Factory, the prices of raw materials must be adjusted regularly."

"Some parts such as other aluminum wheels also have rules for regular material price adjustments, right?"

"And looking at the entire industry, whether it is Toyota, Volkswagen or other car companies, they will link the prices of some raw materials with market conditions."

Lin Cheng knew that this kind of negotiation would definitely not be agreed by the other party as soon as he made a request.

Regardless of whether they can accept it or not, there must be some resistance.

Otherwise, he would not be able to report to the company.

So no matter what Zhang Lin said, he was not angry.

But he would not change Nanshan Battery's attitude.

In the context of a sharp increase in the price of raw materials for batteries, he believed that not only Nanshan Battery would make such a request, but other battery manufacturers would definitely do the same.

Otherwise, they would not be able to bear such a large-scale increase at all.

It's nothing more than other battery manufacturers, who may wait a while before raising it.

After all, the raw materials of batteries are not the ones that have risen in price now, and the prices of materials used in production will rise immediately.

Because these materials are ordered some time in advance, each manufacturer will have some inventory.

Therefore, the price changes in the market will be reflected in the actual materials after a certain delay.

This is why Lin Cheng just proposed to use the market price of the previous quarter to adjust the price of this quarter.

"What you said may be true, but the parts that are now undergoing material adjustments have already determined the material adjustment rules by both parties before our products were mass-produced."

"For example, for the battery pack, although you have some remarks in the quotation, the two parties have not reached an agreement."

"In our opinion, this is more like a unilateral claim of Nanshan Battery."

"I think it will eventually be determined based on the communication between the two parties."

Zhang Lin continued to refute Lin Cheng's words.

But in fact, he also knew that his rebuttal was a bit weak, and he must agree to Nanshan Battery's plan in the end.

On the one hand, Nanshan Battery's claim is not to bully Changan Automobile, but is based on objective market conditions.

On the other hand, Nanshan Battery is the only battery supplier of Changan Automobile. If Changan Automobile does not agree to raise prices, the other party can make a fuss about the supply of parts.

This year, Changan Automobile is focusing on promoting the two electric vehicles, Changan MINI and Changan Star, which is to hit the goal of the first sales volume in the electric vehicle industry this year.

"Mr. Zhang, we actually have another proposal for your reference."

Seeing that everyone was discussing things on two parallel lines, Lin Cheng did not continue to argue with Zhang Lin, but changed a dimension to negotiate with the other party.

"Some OEMs now negotiate prices with material manufacturers, and then ask component manufacturers to buy from raw material manufacturers at the specified price."

"Or the OEMs buy the materials themselves and then give them to suppliers for use."

"In this way, the OEMs also need to worry about us suppliers making money on raw material prices."

"The overall demand of OEMs is often relatively large, and sometimes they can play their own special advantages."

"I think we can also use a similar method for the main raw materials of our batteries?"

Lin Cheng clearly knew that Changan Automobile could not buy cheaper raw materials than Nanshan Battery, but he still proposed it.

This can also be regarded as a means of commercial negotiation.

It seems that the initiative is handed over to the other party, but in fact the other party has no better choice.

There are several plans given to the OEMs as a whole, so that the OEMs will not feel that you are too strong as a supplier and difficult to deal with.

But in fact, the essential things have not changed at all.

Sure enough, after listening to Lin Cheng's words, Zhang Lin said very depressedly: "Nanshan Battery is the world's largest power battery manufacturer, and you must have greater bargaining power on materials such as lithium carbonate."

"If you can't purchase low-priced raw materials, it will be even more difficult for us Changan Automobile."

Everyone is more or less an old acquaintance, so it doesn't matter if these words are said.

However, Lin Cheng also knew that the other party must be unhappy, so when talking about the last step, he gave another step.

"Mr. Zhang, in fact, facing the current situation, we are also quite troubled."

"The development speed of new energy vehicles in China and even the world is too fast, which will stimulate the price of power battery raw materials even more."

"It is very likely that it will continue to rise in the future, so we can only raise this issue."

"Of course, we can also understand the difficulties of Changan Automobile."

"For electric vehicles now, the cost of power batteries is already very high, and the entire electric vehicle is almost unprofitable."

"So our company is actually thinking about how to reduce the cost of power battery packs."

After Lin Cheng said this, Zhang Lin's face really looked much better.

This is the attitude a normal supplier should have.

How can you always poke the lungs of the OEM?

"Mr. Lin, do you have a specific price reduction plan?"

"If this price reduction plan can make up for the cost increase of material changes, we can agree to adjust the material price."

Zhang Lin also breathed a sigh of relief.

The conditions are getting closer step by step, and everyone needs to consider how to make concessions.

"Due to energy density, ternary lithium batteries are commonly used in passenger cars in the industry."

"Only commercial vehicles such as buses and coaches and a small number of passenger cars will consider using lithium iron phosphate batteries with lower energy density."

"However, compared with ternary lithium batteries, lithium iron phosphate batteries require much less lithium carbonate."

"So in the context of rising material prices, the cost advantage of lithium iron phosphate batteries has become more obvious."

"We at Nanshan Battery have never given up on research on lithium iron phosphate batteries in recent years."

"The electric buses and electric buses produced by Yangcheng Nanshan Commercial Vehicle are now popular at home and abroad, and most of the batteries are lithium iron phosphate batteries."

"Now we have achieved new technological breakthroughs in lithium iron phosphate batteries, greatly reducing the energy density difference between lithium iron phosphate batteries and ternary lithium batteries."

"Using lithium iron phosphate batteries can also allow passenger cars to have a range of more than 500 kilometers."

Lin Cheng has prepared many tricks to deal with Changan Automobile today.

There are both soft and hard ones, it depends on how you choose.

Nanshan Battery has so many customers. Except for important customers such as Changan Automobile, he negotiated with them personally. Other customers were negotiated by the sales staff below.

However, some negotiation strategies must have been discussed many times within the company.

How to deal with the OEM and what kind of negotiation strategies should be adopted have been discussed before.

Now we just use various tricks step by step.

"Lithium iron phosphate battery?"

Zhang Lin's eyes lit up. If the performance of lithium iron phosphate battery can meet the performance requirements, then it can really be considered.

For models like Changan MINI and Changan Star, consumers who buy it basically don't care whether the battery is lithium iron phosphate battery or ternary lithium battery.

"If lithium iron phosphate battery is used, can the cost be a few cents cheaper than the ternary lithium battery before the material price was adjusted?"

For electric vehicles, the importance of battery cost cannot be overemphasized.

If the cost of this part is not competitive, it basically means that the entire car is not competitive.

"It should be possible, but although the cost of lithium iron phosphate batteries is relatively low, the price of materials also has a certain impact, so it will not be much cheaper than the previous ternary lithium batteries in the end."

Lin Cheng did not paint a big picture.

After all, no matter which technical solution the battery is, it will be affected by the rise in material prices.

It is nothing more than that the impact on ternary lithium is greater, and in addition, it is originally more expensive, so the cost advantage of lithium iron phosphate batteries can be reflected.

"I will arrange for the R&D personnel to have a good discussion with you later to see if the batteries of some models can be changed to lithium iron phosphate batteries."

"However, it should not be possible to change all of them to lithium iron phosphate batteries in a short period of time."

"For the current ternary lithium batteries, do you have any cost reduction plans?"

Zhang Lin also knew that even if lithium iron phosphate batteries could be used in the future, it would take time.

All kinds of preparations and test confirmations will definitely not be used until next year.

If we keep focusing on this topic, we will be led astray.

How to reduce the cost of ternary lithium batteries is what we need to consider most now.

"Of course there is!"

Lin Cheng gave an affirmative answer without any hesitation.

As the main technical direction of Nanshan Battery, technical research related to ternary lithium batteries is definitely the top priority of Nanshan Battery.

After so many years, it would be a lie to say that there is no effect at all.

The company has so many R&D personnel and registers so many patents every year. Now it is almost time to show them off.

"The current ternary lithium battery, the ratio of nickel, cobalt and manganese is generally 3:3:3, which is commonly known as 333 ternary lithium battery in our industry."

"We all know that the price of nickel is much cheaper than cobalt, and the price increase of cobalt is also much greater than that of nickel."

"So how to increase the proportion of nickel and reduce the proportion of cobalt is a good direction for reducing the cost of ternary lithium batteries."

"As long as we can move in this direction, we can reduce the cost of battery production and greatly increase the energy density."

"Now our Nanshan Battery has successfully mass-produced 523 ternary lithium batteries and is doing forward-looking research and development of 811 ternary lithium batteries."

"If Changan Automobile's new car uses 523 ternary lithium batteries, it can effectively hedge the impact of this material price increase."

Lin Cheng did not fool Zhang Lin, but actually came up with some solutions.

Although these solutions cannot be implemented by Changan Automobile immediately, compared with the lithium iron phosphate solution just now, it is much faster to change.

Even the size of the battery pack does not need to be changed, as long as the battery cell is replaced and the peripheral parts such as the battery management system are upgraded simultaneously, it can be implemented.

For Changan Automobile, this is obviously still very attractive.