As a mage, I just want to pursue the truth

Chapter 144: Lithium battery field "lithography machine"

Global players in the lithium battery industry are basically concentrated in East Asia.

In 2020, LG, CATL and Panasonic together accounted for more than % of the total lithium battery production.

Although Panasonic and LG obtained battery samples from CStone Biotechnology through their own channels, CStone Biotechnology only sent samples to Chinese battery manufacturers, which in itself is a signal.

"From the samples obtained by Kechuang Biotechnology, they have achieved breakthroughs in positive electrode materials and separators. Whether the positive electrode material is lithium metal or a layer of graphene coating is added to the separator."

"The lithium metal cathode uses a honeycomb structured MIEC pipe to release the pressure of the metal lithium due to charging expansion, which is a solution that has been used before."

"Science Biotechnology's lithium metal cathode is a big step forward on this basis. Their microstructure is more complex, but it is indeed more effective."

"The unique graphene coating not only ensures good stability as a positive electrode, but also significantly improves the efficiency of battery charging and discharging."

"Moreover, the performance of the samples of Sinovation Biotech is not much different from what they claim, and even better. The energy density of 700kWh/kg is more than three times the energy density of common power batteries on the market."

"If the lithium battery cathode materials and graphene coatings of Sinovation Biotech can be mass-produced, our batteries will no longer have any advantages."

"At least our current 4680 batteries have no advantages over Kechuang Biotechnology's new cathode material."

The 4680 model battery is Panasonic Battery's current high-end model product, and was released by Tesla founder Musk himself at Tesla Battery Day in 2020.

The energy density of 4860 reaches 300kWh/kg, while Kechuang Bio's lithium battery directly doubles it by 100kWh/kg.

M. Takahashi is the general manager of research and development of Panasonic batteries. He continued: "China is a big country with vigorous development. I have been to China many times. China's battery industry has been developing rapidly."

"When I attended the 2016th South China Lithium Battery International High-level Forum in , the founder of CATL was still learning from us."

"As a result, in 2020, CATL's market share exceeded ours by 5%."

"Science Bio is even more daunting. Even the energy density of our new generation 4680 is still far inferior to that of Science Bio."

"Our hope is that the production cost of Kechuang Bio's cathode material is very high. Since it involves the design of lithium metal ion structure at the microscopic level, the cost is estimated to be not very low."

Panasonic's 4680 battery is coated with conductive material at one end of the "tab-free" electrode, allowing it to be directly connected to the shell or a specially designed cover, and the current is directly conducted between the electrode collector, cover and shell.

This design increases the area of ​​electrical conduction, shortens the distance of electrical conduction, and reduces its internal resistance by 5 times.

At the same time, due to the absence of the metal conductor, the cost of 4680 is reduced by 14%.

"If the cost of Kechuang Biotechnology's lithium battery technology is diluted to a level lower than ours per kWh/kg, then we will have to increase our R&D investment and obtain patent authorization from Kechuang Biotechnology."

“Science Biotechnology’s technology is at least three years ahead of ours.”

Panasonic started supplying batteries to Tesla a long time ago, and can be said to be one of Tesla's earliest core suppliers.

In the past, new energy vehicles used a whole battery or several large batteries combined. Until Tesla came into the market, it used 7104 Panasonic 18650 ternary lithium batteries in series to form the overall power system.

Only then did major new energy vehicle companies begin to use the method of connecting small batteries in series.

This is because the battery management system can improve the battery usage efficiency.

Even now, Tesla's battery management system still occupies a leading position among major new energy vehicle companies.

The cooperation between Panasonic Battery and Tesla is deeply tied together. As early as 2014, Panasonic and Tesla jointly invested 50 billion yuan to build a super battery factory in Nevada, which specializes in the production of cylindrical battery cells needed for Tesla cars.

After M. Takahashi finished speaking, Kazuo Tadanobu's eyes, which had been closed, suddenly opened: "Don't have any illusions. Kechuang Bio's cathode material must not be a laboratory product."

"If it is just a laboratory product, it is impossible to provide it directly to major manufacturers."

"Science Biotechnology is a formidable company. Whether it is endorphins or brain-computer connection, Science Biotechnology's technology has directly opened up a technological gap with other competitors."

"We must be prepared to face scientific and technological innovations head-on."

M.Takahashi nodded and said, "Hey!"

Kazuo Tadanobu should continue: "First, we need to find out the attitude of Kechuang Biotechnology."

"Since Kechuang Biotechnology is licensing its brain-machine connection technology and endorphin technology to other companies, it means they are willing to cooperate."

"Both Sony and Samsung have obtained patent licenses for brain-computer connection. Lithium battery technology should not be the only technology that is not licensed to foreign companies in China."

"I will send the president of Panasonic Greater China to inquire about the news, but you also need to be prepared that Sinovation Biotech is unwilling to license our technology."

"You just said that Sinovation Biotechnology's technology is three years ahead of ours. Does that mean that if we follow our own technology route, it will take us three years to reach Sinovation Biotechnology's current performance?"

M.Takahashi: “Yes, this is an estimate if everything goes well.”

“And even if our energy density reaches 700kWh/kg, our charging and discharging efficiency will hardly catch up with lithium batteries using Kechuang Biotechnology.”

Kazuo Tadanobu asked: "Can we bypass their technology patents?" M. Takahashi: "It's unrealistic. First of all, even if we design a similar metal structure based on the lithium metal structure of Sinovation Biotechnology, the energy density will be almost the same as Sinovation Biotechnology's lithium battery."

"But we don't know the industrial process, so laboratory methods alone are meaningless."

Kazuo Tadanobu: "What if we could obtain the industrial manufacturing method for Kechuang Bio's cathode materials?"

M. Takahashi: “I can’t guarantee that we can circumvent their patent barriers.”

"So far, no pharmaceutical company has bypassed the technical barriers of Kechuang Biotechnology's endorphin industrial production method."

"You should know that Kechuang Bio takes 30 percent of the global endorphin profits every year."

The patent licensing costs for endorphins are very high.

At present, the global analgesic market, endorphins have a market share of more than 1000%, with annual sales of about billion US dollars. Kechuang Bio's profit from this is more than billion US dollars.

The explosive growth of this revenue will mainly occur in 2022.

Kazuo Tadanobu: "Research and development and gathering information are carried out simultaneously."

"LG has been deeply involved in the Chinese market for many years and has always regarded China as the most important market for our future development."

"I hope to establish a deep cooperative relationship with Sinovation Biotech in the field of lithium batteries. Sinovation Biotech is a giant in China, and we can achieve perfect complementarity in resource integration."

After a few pleasantries, Gao Minghuan, president of LG Chem Greater China, got straight to the point.

Cheng Gang knew that he had no say in the matter. This was decided by Zheng Li, and only domestic Chinese companies were authorized.

But it was impossible to say it directly on the spot, so Cheng Gang said tactfully: "Science Biotechnology is still a rookie in the field of lithium batteries."

"LG is the leader in the global lithium battery industry. We have a lot to learn from LG Chem, whose technological strength is beyond doubt."

"Science Biotech's technology still has many immature aspects, and I hope to have the opportunity to cooperate with LG Chem in the future."

Gao Minghuan knew what the other party meant, and he asked: "Mr. Cheng, there is a saying in China: Speak frankly and honestly."

"I'm going to say something a bit blunt next, please forgive me."

"LG Chem has already cooperated with Cosmos Biotech on endorphins. LG Chem's endorphin production ranks second in Korea, second only to Samsung."

"After the partnership was reached, LG Chem had to pay hundreds of millions of dollars in patent licensing fees to Sinovation Biotech every year, and this fee has never been in arrears."

"We already have a history of cooperation, so why is Sinovation Biotech unwilling to cooperate with LG Chem this time?"

"Is it because we need to support our own industrial chain? But China's own lithium battery industry chain is not weak. It can even be said to be the best in the world. There is no need for support at all."

"Logically speaking, shouldn't your country's biopharmaceutical industry be supported even more?"

“I’m curious about your company’s strategic considerations?”

"As a global giant, why did it show a certain tendency to protect regional rights on this patent?"

Gao Minghuan’s question was very sharp, and Cheng Gang really wanted to ask back: What does it have to do with you?
Helplessly, he could only politely say: "This is due to certain considerations. We will consider opening up the technology to foreign companies in the future."

"It's just that due to production restrictions, it is not currently open to global battery manufacturers."

"Since you are so frank, I can reveal a few things."

"Since you came to talk about Kechuang Bio's lithium battery technology today, I guess your company has already obtained samples and conducted tests."

Gao Minghuan: “Yes.”

Cheng Gang continued: "You should know that our lithium battery cathode technology adds a unique graphene coating between the lithium metal cathode and the electrolyte."

"Unlike common graphene coatings, Kechuang Bio's graphene coating requires special equipment to print the metal lithium cathode material."

"Similar to lithography machines, the production of this equipment is limited and cannot meet the supply needs of all manufacturers."

What Cheng Gang said is true. Since it is a three-dimensional graphene structure, it is not like the current mainstream method of just coating a layer of graphene.

Specialized graphene coating equipment is required. The underlying logic of this technology is somewhat similar to that of a photolithography machine, which is to print fine patterns with graphene on lithium metal positive electrode materials.

It can be said to be a lithography machine in the field of lithium batteries.

To some extent, this is also a countermeasure. Kechuang Biotech deliberately split it up.

(End of this chapter)