What's wrong with me being a rich man?

Chapter 703, Section 471 Discussion
Public opinion from Hong Kong media has not stopped, not only intensifying discussions on the impact of subsidies on silicon carbon groups, but also specifically sparking discussions about Kyushu Automotive Batteries.

“The Silicon Carbon Group is a contradiction. On the one hand, it emphasizes the rapid development of new energy, while on the other hand, it vigorously uses transitional solutions. This contradiction means that it has not been recognized after listing on the Growth Enterprise Market, but has instead been continuously rejected by investors.”

"At the same time, the Silicon Carbon Group also has a serious flaw under this contradiction: its range-extending power system uses lithium iron phosphate batteries."

"According to the International Energy Agency's (IEA) report on power batteries this year, there is great potential for improving the energy density of ternary lithium batteries, which could reach 300Wh/kg in the future. They are the mainstream direction for the electrification of passenger vehicles, while lithium iron phosphate batteries have irreplaceable advantages in commercial vehicles and energy storage."

"Compared to Silicon Carbon Group, Tesla uses more expensive ternary lithium batteries for longer range and better user experience, which has been widely sought after in the international market."

"It is worth mentioning that CATL, the battery supplier of Silicon Carbon Group, is also increasing its investment in ternary lithium batteries. It is frequently discussing the standards and application of ternary lithium batteries with other car companies. It is close to reaching a ternary lithium battery supply agreement with Changan Automobile, which will further expand its market coverage among domestic car companies."

“SiCitroën Group has bet on lithium iron phosphate, but CATL has not bet on SiCitroën Group.”

“The entire battery market will soon undergo drastic changes. If Silicon Carbon Group does not switch to ternary lithium batteries, it will face a huge disadvantage. If it does switch, it will mean betraying more than 100,000 car owners.”

"This was a strategic mistake by Silicon Carbon Group, and founder Yu Xing clearly bears the greatest responsibility."

"Our king of short selling should perhaps focus more on the future of Silicon Carbon Group rather than chasing profits in the financial markets."

The South China Morning Post published a report on the battery choices of Silicon Carbon Group, clearly supporting the ternary lithium battery route. Hong Kong Economic Journal, Hong Kong Economic Journal, and other media outlets also argued from different angles about the advantages of ternary lithium batteries in passenger vehicles.

Silicon Carbon Group has in fact responded to this question before, believing that in the current domestic market, range-extending systems have greater adaptability and lithium iron phosphate batteries have higher safety.

However, just as the company was paying attention but had not yet taken action, Hong Kong media also sparked discussions in mainland China, triggered by a reporter's inquiry to CATL for verification.

Yang Qi, marketing director of CATL, told the media: "We are indeed cooperating with Changan on ternary lithium batteries. Lithium iron phosphate has basically reached its limit, and ternary lithium batteries still have a lot of room for breakthrough in terms of better energy density. They will definitely be the mainstream in the future."

"Lithium iron phosphate and ternary lithium are like gasoline and diesel; they are not strong substitutes for each other, and each has its own applicable fields."

The reporter followed up on Yang Qi's answer by asking, "Does this mean that CATL believes that new energy passenger vehicles should use ternary lithium batteries?"

Yang Qi hesitated for a moment, but still said, "It depends on what the car companies choose, but ternary lithium batteries do show stronger competitiveness."

His answer was somewhat tactful, but his stance was still clear.

This is CATL's judgment on the market and products. In addition to the discussions on cooperation with Changan reported by the media, the company is also discussing cooperation on ternary lithium batteries with SAIC, Dongfeng and even foreign automakers such as Citroën.

There is no doubt that Silicon Carbon Group is the automaker that CATL most wants to promote ternary lithium batteries in its vehicles. Zeng Yuqun has also mentioned this point many times in meetings, believing that this will replicate Kyushu's promotion of the CATL brand.

Zeng Yuqun even mentioned the conditions he discussed in Lingang: the carbon silicon model could remain unchanged for now, given the success of the Kyushu model, but would be equipped with ternary lithium batteries when it was upgraded to a flagship model in the future.

However, Lingang's attitude remained firm, which disappointed everyone at Ningde. In particular, with the successful "luring" of some key technical personnel by carbon silicon through the joint venture battery plant, this disappointment was mixed with anger.

The cooperation between the two companies has gradually faded, so they have no choice but to use more resources to promote ternary lithium batteries.

CATL's emergence has undoubtedly amplified the technical discussion. Silicon Carbon still hasn't responded, but another battery manufacturer, Guoxuan High-Tech, immediately stepped forward to express its opposition.

"Lithium iron phosphate still has room for improvement in energy density, and it is safer. We will continue to focus on lithium iron phosphate. Of course, this does not mean abandoning ternary lithium, but rather that it can meet the needs of different customers. We are also happy to discuss future lithium iron phosphate products with silicon carbide."

Guoxuan High-Tech is envious of CATL's cooperation with Silicon Carbon, and actively expressed its support upon noticing the apparent discord between the two companies. The consecutive failures of these two battery manufacturers have made the merits of battery technology a focus of media attention, and have also sparked curiosity about the new energy industry. Which technology is superior is a crucial factor in user choices.

Regardless of the starting point or goal of this public opinion debate, the truth always becomes clearer through debate.

Some financial media outlets have answered this question from the perspective of the secondary market, such as the stock market, arguing that the stock price increase of ternary material suppliers like GEM Co., Ltd. is twice that of lithium iron phosphate companies, which is undoubtedly the clear answer given by the market.

Reporters also sought out professionals and interviewed experts from the Institute of Physics, Chinese Academy of Sciences, hoping to get an accurate answer. However, the result was that "ternary lithium has high energy but is not as safe as lithium iron phosphate. The appropriate route should be selected according to the application scenario."

Both CATL and Guoxuan High-Tech have been involved, with the media offering their support and providing科普 (popular science) information, and institutions thoughtfully providing different investment advice.

This heated discussion about battery technology naturally caught the attention of those in power, but it also put them in a difficult position to express their stance.

Silicon Carbon Group is now a leading player in the new energy vehicle industry, but CATL is also a major player in the new energy industry, and they have different opinions on the two technological routes.

Ultimately, encouraging the development of multiple technological approaches became the official media's stance, but this did not quell public debate.

As a key party involved in the public opinion, Silicon Carbon Group responded belatedly, showcasing its internal technological evolution of lithium iron phosphate batteries in a CG short film, mentioning that it will develop lithium iron phosphate technology with more integrated and efficient innovations.

At the same time, the short film ends with an answer from Gao Huan, a former key technical staff member of CATL and now the head of the battery team at Silicon Carbon Group.

“Ternary lithium is good, but we have always believed that lithium iron phosphate is a better product to meet our needs.”

"The Silicon Carbon Group has always prioritized safety, which is a common requirement for us in areas such as vehicle body and battery."

"In the future, silicon carbon will launch more range-extended and pure electric models to meet different customer needs."

Gao Huan's appearance surprised industry insiders. Using a former Ningde native to respond to a current Ningde native was Yu's doing.

However, not only Gao Huan, but also Yu Xing, considering the battery's level, prospects and positioning, which is indeed a matter of important awareness promotion, also gave a brief telephone interview.

"A car is a comprehensive experience, not something that can be fully represented by battery data. I still hope that everyone can compare and compete based on specific models. As for silicon carbide, we'll have to wait for models from automakers like Changan, SAIC, Citroën, and BMW."

Yu Xing knows more about market trends than anyone else.

His tone was quite calm, but the content still stirred up a wave of excitement in the public.

Zhu Zehui, who was promoted from Lingang to Zhejiang Province, saw Yu's response in the report and felt that it was still the same old meaning: to let car companies compete directly with CATL.

He put down the newspaper and began reviewing the latest provincial documents, but as he read on, he became astonished by the information regarding new energy vehicle company projects…

Lithium iron phosphate is good; companies like Silicon Carbon Group use it, and there's ongoing technological advancement.

Ternary lithium batteries are also an option; CATL is focusing its research on them and is also collaborating with several automakers.

What exactly is this water-hydrogen engine of yours?
(End of this chapter)