Tech startup: I really do make mobile phones!

Chapter 198 International Unified Procurement Alliance
Orange Technology, Chen Mo's office.

Zhou Yumeng knocked lightly on the door and entered, placing two exquisitely crafted inspection appointment letters on Chen Mo's large desk.

Autumn sunlight streams through the large floor-to-ceiling windows, illuminating the distant mountain landscape within the fish tank, resembling the poetic scene of "a winding stone path leading up a cold mountain."

"Mr. Chen, two appointments!"

“One document was first sent by the Pingguo Flower Planting Branch to Manager Lin Junfeng, and then formally handed over on behalf of Mr. Cook, clearly expressing the desire to discuss the entry of gaseous lithium batteries into the ‘Apple Chain’.”

Zhou Yumeng spoke at a steady pace, pointing to the letter with its elegant handwriting and rigorous format.

"Another one."

She paused, then pointed to the letter next to her, which had a simpler, even somewhat casual design: "It's from Mr. Mashke of Tesla, sent directly in his personal capacity, hoping to bring his team to inspect Far Orange's honeycomb power battery!"

Chen Mo leaned back in his chair, his fingers tapping the table unconsciously, a playful smile playing on his lips.

These two are interesting.

A system that proceeds through official channels, step by step, emphasizing the rules and decorum of adapting to local customs.

The other maintains its own style, getting straight to the point with a clear goal, and carrying a bit of the recklessness of a tech geek.

This appointment letter reveals the difference in the two companies' future operating styles in China.

Chen Mo was quite curious about what conditions these two tech giants, who would become the future "Seven Sisters" of the US stock market, would offer for Yuancheng's gaseous lithium technology, and how much compromise they would be willing to make.
The gaseous lithium technology has been developing for almost a year, and Pingguo and Tesla are only now coming to our door. Chen Mo thinks they have a lot of perseverance.

What Chen Mo didn't know was that it was precisely because Tesla and Pingguo's A124 hydrogen-based gaseous lithium technology failed to commercialize that they had to choose the more mature Far Orange lithium polymer gaseous lithium technology.

"How's my schedule this week?" Chen Mo asked.

Zhou Yumeng skillfully opened the schedule she carried with her: "You have no plans for the morning three days from now. After 12 noon, you were originally scheduled to discuss the establishment of a centralized procurement company with Mr. Shen of Bubu Ointment!"

"Let's set it for three days from now in the morning!" Chen Mo decided. "Also, contact General Manager Shen of the Bubu Ointment company and postpone the meeting for the establishment of the Centralized Procurement Alliance by one day!"

"I think we could perhaps invite two new 'allies' to join us."

Perhaps it was because they remembered the "Domestic Unified Procurement Alliance" that had been launched with great fanfare but ultimately fizzled out.

Chen Mo specifically instructed Zhou Yumeng: "Try to keep a low profile this time and don't let the news leak out!" He already had a new plan in mind.

Since domestic manufacturers have different ideas and find it difficult to work together, why not broaden our horizons and create an "international centralized procurement alliance"?
Isn't Pingguo the country most fond of setting standards and playing supply chain control?

Alright, I'll put the standard solution on the table directly. We can also discuss shares. We'll use open cooperation to counter the closed "fruit supply chain" logic.

It depends on how you choose, Pingguo!

Zhou Yumeng confirmed, "Will you two be receiving guests together? As for the reception protocol, would it be acceptable to treat Mr. Cook as a VIP and Mr. Mashke as an important business guest?"

As if afraid that Chen Mo wouldn't know, she made a point of explaining.

"With the support of Wall Street, Mr. Cook officially took over as CEO of Apple in August of this year, leading this company with a market value of over 300 billion US dollars!"

Chen Mo naturally knew the reason why Zhou Yumeng made such an arrangement.

At this time, Tesla and SpecaX were still struggling and burning through cash. Masque's net worth was even less than that of professional manager Cook, let alone compared to himself, a rising star in the Chinese business world.

But Chen Mo was even more aware of the future potential of this "tech fanatic"—20 years from now, he and Amazon's bald-headed man would take turns being the world's richest man.

"Raise Masque's hospitality level to the same as Cook's, treat it as a VIP!" he ordered.

"Okay, Mr. Chen!"

Although Zhou Yumeng was somewhat surprised, she did not ask any further questions and accepted the order to leave.

The subsequent reception arrangements were quickly finalized.

The Pingguo team was very satisfied with the VIP treatment provided by Orange Technology, which met their expectations as an international giant.

The Tesla team, especially Maske himself, was somewhat surprised and delighted by the exceptionally high level of hospitality provided by Orange Technology.

This feeling of not being underestimated but rather highly valued made Masque feel a sense of goodwill towards Chen Mo, the gaseous lithium developer he had never met.

After comparing the parameters of Songxia 4680 battery and Yuancheng honeycomb battery, his mind began to lean towards the latter.

Zhou Yumeng arranged for both teams to stay at the same five-star hotel in Shenzhen, a special arrangement at Chen Mo's behest.

I'm not afraid of you joining forces, I'm afraid you won't talk!

During dinner, Cook and Masque unexpectedly meet at the hotel restaurant.

"Eron?" Cook greeted him with some surprise.

“Dim?” Masque recognized him as well.

After a brief exchange of pleasantries, the two prominent figures in the technology industry immediately realized that the other's purpose for the trip was likely the same as their own: Far East's gaseous lithium technology.

After A124's attempt to commercialize its hydrogen-based lithium battery failed, the two met again in Shenzhen, China, and naturally understood each other's plans.

As a shrewd businessman, Cook quickly put aside any potential misunderstandings and took the initiative to make the suggestion.

"Aero, it seems we share the same goal!"
Far Orange's technology is indeed unique, but the price is probably quite high.

Perhaps we can temporarily join forces and negotiate for more favorable terms?

Although Mashke is known for his bold and outspoken nature, he is by no means a mindless person. He will naturally not refuse anything that can save costs and reduce risks.

“Good idea, Tim! We can conduct joint investigations first and maintain consistency in the initial price negotiations.”

A temporary, tacit "alliance" was formed during this brief encounter.

Three days later, at the Yuancheng New Energy Industrial Base.

Chen Mo personally led the delegation, which included Yuancheng General Manager Xu Mingyuan, Technical Director Liu Mingzhen, Production Manager Liu Jiping and other senior executives. They warmly received the Pingguo delegation led by Cook and the Tesla delegation led by Ma Shike.

After a brief exchange of pleasantries, the delegation members received well-made, bilingual (Chinese and English) color product manuals and technical white papers.

Chen Mo personally accompanied Cook and Masque to begin their tour of the factory in an open-top sightseeing vehicle.

Sitting in the passenger seat, Xiao Zheng cautiously observed his surroundings.

Chen Mo, Cook, and Ma Shike sat with their backs to the front of the car, enjoying a wide view.

Chen Mo began with a macro-level introduction, waving his hand with great flair.

"The entire Far East New Energy Industrial Base, excluding the workers' living area, is planned to be built into the 'Far East Super Battery Factory' by 2013, covering an area of ​​150,000 square meters, providing nearly 10,000 jobs, and aiming to produce 10 million battery cells per day!"

Masque was taken aback when he heard this, as this plan bore a striking resemblance to the Nevada Gigafactory blueprint he had described in his PowerPoint presentation.

But because he was familiar with the construction plan for the super battery factory, he asked skeptically, "Mr. Chen, your plan is very ambitious! But can such a massive project be completed in three years?"

Chen Mo smiled confidently.

"Mr. Mashke may not be familiar with the 'speed of planting flowers'!"
The basic renovation and construction of our production area has been basically completed in the past three months.

The current capacity utilization rate has reached 35.7%, with a daily output of approximately 357 million battery cells.

We are even confident that we can fully achieve our established production capacity target of 10 million battery cells per day within two years.

The sightseeing bus drove past rows of standardized factory buildings that were already in operation and were busy and orderly, and there were no unfinished construction sites in sight.

Mashker looked at the neat and orderly factory buildings outside and couldn't help but marvel.

"This is incredible!"
In North America, it would take at least 3 to 5 years to complete such factory infrastructure, but you only took 3 months!

Moreover, with such rapid capacity expansion, I'm even finding it difficult to find enough qualified workers and engineers in North America to maintain a stable production line!

“This is an advantage of our education,” Chen Mo explained. “Inclusive education provides us with a large number of qualified industrial workers and basic engineers.”

"We do have a unique advantage in manufacturing."

“Mr. Masque, perhaps you could consider relocating some of Tesla’s production lines here; your business might see better development.”

These words made Masque's eyes flicker, and he fell into deep thought. Next, it was time to delve into the production line and showcase Far Orange's technological prowess.

The first area we visited was the battery cell production area.

For reasons of technical confidentiality, Chen Mo only arranged for everyone to observe from a distance through the observation glass window and did not go into the production line workshop.

Chen Mo personally explained to the two of them: "There are two methods of material injection. Solid injection is used in first and second generation battery processes!"

They then walked a little further, and Chen Mo pointed to the explosion-proof room and explained.

"There is an injection production line with an independent explosion-proof room over there. It is a vaporization injection process, which is specifically used for third-generation battery technology."

Maesker immediately seized on the key technical point: "Vaporization injection? Does that mean that the energy density of third-generation batteries can be further improved through compression vaporization?"

Chen Mo gave him an approving look.

"The CEO of Maersk really knows technology!"

“That’s right. We already have mature mass production solutions for third-generation two-stage and three-stage boosted batteries, with energy densities of 172Wh/kg and higher, respectively.”

"But currently, it is mainly limited by cost and market acceptance, and is still being kept as a technology reserve."

He deliberately revealed some information, but not all of it, mainly to whet people's appetites.

Cooke's keen business sense was immediately drawn to the "172Wh/kg" and "three-stage turbocharging" features, which were perfect gimmicks for creating a "tech flagship" image!

"Mr. Chen, what is the approximate cost of a two-stage turbocharger?"

Chen Mo smiled inwardly, knowing that the bait had been taken.

"The second-generation turbocharged engine has an energy density of 172Wh/kg and currently costs about 6880 yuan per kilogram, which is equivalent to 980 US dollars. If the R&D and mass production costs are taken into account, the overall selling price is expected to be around 1600 US dollars per kilogram."

Cook quickly calculated in his mind: 1 kilogram of material can make about 40 standard mobile phone batteries, which means that the cost of each battery will be as high as $40!

Currently, the battery cost of the Pingguo 4S is only around 40 yuan, but the cost has increased by nearly seven times!
Even with its brand premium, Pingguo cannot withstand such a drastic increase in BOM costs at this moment.

Under Chen Mo's expectant gaze, he slowly but firmly shook his head.

Chen Mo was not surprised and smoothly steered the conversation back to reality.

"Therefore, the high cost of third-generation batteries is mainly due to the complexity of the laser etching honeycomb structure process, and the yield rate of third-generation etching is even less than 30%!"

“We currently have three etching production lines, which correspond to the first-generation MOF structure, the second-generation MOF+single honeycomb structure, and the third-generation MOF-8 honeycomb structure with single-stage supercharging.”

"In the future, the entire industry chain needs to make progress in equipment and processes in order to effectively reduce costs!"

Both of them expressed their understanding.

The subsequent visit to the main gaseous lithium battery cell production line showcased a highly automated, segmented, and flexible production model, which drew frequent nods of approval from Cook, a master of supply chain management.

Chen Mo smiled and said, "We not only have a young R&D team, but also managers who are good at thinking and producers who are good at optimizing production lines!"

Cook politely replied, "This is inseparable from Mr. Chen's outstanding leadership!"

As for Mashke, emotional intelligence? It's completely irrelevant to a tech geek like him!
If one's technology is 90% superior to others, others will naturally have to give way to that technology!
Upon entering the module assembly area, the level of technical confidentiality was lowered, and Chen Mo led everyone on a close-up tour of the assembly production line.

The delegations from both companies also split up to exchange ideas with Far Orange's engineers.

陈默亲自将YC-1.0（860mAh）、YC-2.0（920mAh）、YC-3.1.1（2000mAh）三种规格的电池样品递给酷克。

他解释道：“橙子1和蓝厂V1使用YC-1.0，橙子2和小麦1使用YC-2.0，在市场化方面，都有不错的反馈！”

Cook picked up the clearly larger YC-3.1.1 battery and asked, "Mr. Chen! Is this the battery used in the gimbal of the Dajiang Qingling drone?"

“Yes!” Chen Mo nodded: “Currently, only high-value-added products like drones can reasonably afford the cost of third-generation first-stage supercharging technology!”

Cook looked at the battery thoughtfully and asked again.

"Are there any third-generation batteries that meet mobile phone standards?"

"Yes! YC-3.0, standard weight 25 grams, capacity 1380mAh, priced at about 126 yuan per piece!" Chen Mo gave the key data without hesitation.

Cook quickly calculated in his mind: this cost is about 3 times that of the Apple 4S battery, but it is still close to the upper limit of the Apple 5's battery budget, which is still under development.

If Apple phones adopt this battery, they will once again outpace their competitors in terms of battery life and "cutting-edge technology" image!

Once a little-known fact about the supply chain matures, the trend of people reaping the benefits is something that Apple started. In the early days of Apple phones, only the A-series chips were designed by Apple itself.

He held the YC-3.1.1 sample in his hand, lost in thought, clearly weighing the pros and cons, and how to persuade the ailing Laubus to directly purchase the finished product solution, instead of wasting time and money on secondary research and development using battery cells!

Next, Chen Mo led everyone on a tour of the Honeycomb Power Battery Assembly Line.

He looked at Mashke and explained the basic information about honeycomb batteries in detail.

"Basic Unit 1 is a hexagonal 'honeycomb' consisting of 666 gaseous lithium-ion battery cells and one Infineon power management chip, using the BTD reference BMS power management solution!"

"Currently, the standard battery design is a parallel configuration of 4 groups (2664 cells) or 6 groups (3996 cells)."

“以4组为例，支持4C超充，3分钟可充80%（对应续航约379公里），15分钟充满（对应续航约474公里）！”

"Extremely adaptable to extreme environments (-40℃~150℃), with a battery retention rate exceeding 80% even in extremely cold conditions!"

"The average daily loss due to static storage is only 0.1%!"

Even though he already knew the parameters of the honeycomb battery, Mashke still couldn't help but marvel at Chen Mo's explanation.

Charge to 80% in 3 minutes!

This is a revolutionary power battery for the new energy vehicle industry!

He has already begun to imagine what it would be like if Far Orange made a breakthrough in electrode materials in the future, supporting 8C or even higher charging rates.
Subsequently, Chen Mo led the team on a tour of the battery performance laboratory and safety verification center.

When passing through the highly automated logistics and warehousing area, the area guarded by armed guards and marked "warehouse" was deliberately bypassed, but everyone understood the unspoken message.

That's probably where the core secrets of Far Orange's gaseous lithium technology lie.

After the site visit, Zhou Yumeng arranged for a van to take the Pingguo and Tesla teams back to their hotel, giving them ample time to discuss their cooperation negotiation strategies for the next day.

Chen Mo then answered Shen Yiwei's call.

"Brother Wei! I'm letting you know in advance about the meeting of the centralized procurement alliance tomorrow. It might not just be our two companies; the teams from Pingguo and Tesla are also in Shenzhen. I plan to invite them to have a preliminary discussion about our 'centralized procurement alliance' concept!"

Shen Yiwei on the other end of the phone was visibly surprised, then laughed and said, "You're something else! You've even hooked up with Pingguo?"

"If you can really get Apple to endorse your gaseous lithium, which high-end flagship phone in China would dare not use Yuancheng's batteries in the future?"

Chen Mo joked, "Brother Wei, you could also take this opportunity to promote your Hi-Fi standard to Pingguo. It's all about how you do it!"

Shen Yiwei laughed and scolded, "Stop joking with me! But seriously, Xiao Chen, if you can really bring Pingguo into this alliance, even if it's just a preliminary intention, I'll be more confident in persuading my second senior brother (Cheng Yonghao)'s Green Factory to join!"

Chen Mo raised an eyebrow and couldn't help but sigh.

"It's true what they say: 'Flowers bloom inside the wall but their fragrance wafts outside, and foreign monks chant sutras better.' Sometimes, all our hard work in promoting technology is less effective than the halo of an international giant!"

Shen Yiwei comforted him, "Don't worry! Pingguo is a well-established brand in North America that has been famous for many years. It's no longer considered new. If the Central Procurement Alliance is to grow and expand in the future, it will still need your Orange brand to continue to provide cutting-edge technology to back it up!"

"Haha!" Chen Mo laughed heartily, "Brother Wei, I love hearing that! Then let's wait for good news tomorrow!"

After hanging up the phone, Chen Mo looked out the apartment window towards the north.

It seems that the Yuancheng New Energy Industrial Base is still bustling with activity as the lights come on at dusk.

A cooperative negotiation that could potentially reshape the global smartphone and new energy vehicle industry chain is about to unfold on this vibrant and promising land.

His idea of ​​an "international centralized procurement alliance" has also taken its first tentative step.

It's okay if passion and technology can't win over our own people; I can always change my approach and use technology and mutual benefits to unite outsiders!

With a different approach, Chen Mo suddenly felt that the path for the unified procurement alliance had broadened.

(End of this chapter)