Smarter Energy: Far East First will Benefit Greatly from the Explosion in Demand for Ternary Lithium

    According to the report of Japanese media on November 7, Toyota planned to formally march into the market of Battery Electric Vehicle (hereinafter referred to as BEV) by establishing and perfecting the batch production system of BEV by 2020. Toyota made a plan for research and development of a BEV which can travel over 300 km on a single charge, targeting on the Japanese market during the Tokyo Olympic Games in 2020 and other major markets involved in BEV popularization around the world. BEV would put forward higher requirements on the performance of power battery. The institution believed that high-nickel ternary power battery will be the inevitable trend of the future development of lithium battery.

    Far East First New Energy Co., Ltd. (hereinafter referred to as Far East First), the wholly-owned subsidiary of Far East Smarter Energy Co., Ltd. (600869), is a production enterprise of 18650 ternary lithium battery, and it has the largest production and biggest sales volume in China, ranking No. 3 in the world, only after South Korea's Samsung and Japan’s Panasonic. Far East First has entered into supply agreements with several famous new energy automobile enterprises in China, such as JMC, Dongfeng, Zotye, Chery and Shaanxi Tongjia Automobile Co., Ltd. According to the declaration of Announcement of Road Power-driven Vehicle Manufacturing Enterprises and Products (Batch 290) issued by MIIT, JMC was on the list successful. Meanwhile, in order to achieve the goal of becoming the enterprise with largest production and biggest sales volume of Tesla lithium battery around the world, Far East First extends the global business actively and strives to catch up with and surpass Samsung and Panasonic.

    Some institutional analysts predict that the upcoming new subsidy policy for new energy vehicle will accelerate the battery enterprises’ pursuit for higher energy density and promote the development of the lightweight pack technology. According to Planning for the Development of the Energy-saving and New Energy Automobile Industry (2012-2020), the energy density and system cost of energy battery shall be updated from 300Wh/kg and RMB 1.5/Wh to 350Wh/kg and RMB 1.0/Wh respectively. Though the domestic low-end battery manufacturers are facing the danger of becoming obsolete due to the failure to meet the requirements of the government for technical level, Far East First is expected to benefit from the policy with the ternary lithium battery with high technical level and will further expand market share.  

    It is learned from the Advance Schemes on the Non-public Issuance of Stocks by Smarter Energy (600869) that Smarter Energy plans to raise funds around RMB 3.1 billion for Far First’s Annual 3G Wh High Energy Density Power and Energy-storage Lithium Battery R&D and Industrialization Project. Recently, Smarter Energy made the layout of ternary lithium battery business again through Far East First. Far East First plans to contribute RMB 300 million to invest the “Jiangsu Far East First New Energy Co., Ltd.” and has already gotten the business license. Smarter Energy believes that such measure will further promote the extension of Smarter Energy’s industrial chain and achieve the goal of the strategic layout of emerging industries by strengthening the layout of new energy industries in the Yangtze River Delta Economic Zone.