Layout a new track in the battery industry chain

Layout a new track in the battery industry chain



Entering the production workshop of Shihe Technology, I saw a batch of retired power batteries being delivered here, and the staff were conducting in-depth tests on their performance. After testing, lithium batteries with satisfactory data were labeled with a cascade utilization label and sent to the warehouse for storage, waiting for reassembly.



Cascade utilization refers to the process of continuing to use a product that has already been used until it reaches its original design life, and then uses other methods to fully or partially restore its functionality. This belongs to the same level or downgraded application and is not for refurbishment use.



In recent years, the new energy vehicle market has been booming, and the installed capacity of power batteries has also increased. According to national regulations, if the capacity of power batteries decays to below 80% of their rated capacity, they must be forced to retire. Starting from 2021, the number of retired power batteries has significantly increased, and the cascade utilization of battery recycling has become a new business opportunity. It was in this year that Shihe Technology began to layout the industry.



Established in 2018, Shihe Technology is a high-tech enterprise specializing in the research and development, production, and sales of new energy power battery products. In December 2021, the company invested in the construction of a 30000 ton cascade utilization lithium-ion battery production line project in the Jiulongfeng Tourist Area of Huidong County, covering an area of 7200 square meters and a building area of 8700 square meters, with a total investment of 105 million yuan.



After the retired power batteries are recycled and disassembled, their modules are tested for data and performance, and batteries that meet the reuse conditions are reused for energy storage products. "Wang Min, General Manager of Shihe Technology, introduced that the project has a complete set of specialized machinery, tooling equipment, and battery testing system, which applies lithium battery management technology, standardized converter equipment, and monitoring management system to the production of energy storage equipment.



The project was completed and put into operation in June last year, and currently has 72 employees. The total output value since its operation is about 100 million yuan.



In Wang Min's view, recycling power batteries for energy storage products is a highly promising new track. The service life of new energy vehicle batteries is about 5 years, and after that, their performance will gradually decline, unable to meet electricity demand. In the coming years, a large number of batteries will be retired. "He said that while the new energy vehicle industry is taking off, the recycling and utilization of power batteries has become a path for the development of the new energy storage industry.



Tackle technical challenges and seize market opportunities



The core of cascade utilization is to conduct a series of testing and analysis on the original product, scientifically determine its lifecycle and reusability, and thus design a gradient level and application field that conforms to the product.



To this end, Shihe Technology has established a research and development center, focusing on technological research in battery recycling and utilization. It actively cooperates with leading new energy vehicle manufacturers such as BYD, empowers waste power batteries through its core technology, and "replaces them with new equipment" to re-enter the market.



At present, Shihe Technology is the only enterprise in Huidong County engaged in the recycling and cascade utilization of waste power batteries for new energy vehicles. Not long ago, the company applied for industry standard recognition for the comprehensive utilization of waste power batteries in new energy vehicles, and has passed the preliminary review of the Municipal Bureau of Industry and Information Technology.



In the company, a large "container battery" has attracted everyone's attention, filled with batteries of all sizes. These outdated power batteries have been re integrated and developed by Shihe Technology, transforming into a brand new large-scale energy storage system. Wang Min introduced that this is the representative lithium battery container energy storage system of Shihe Technology -1MWH container energy storage equipment. Last year, this product was exported to Europe, America and other places. It is loaded with high-performance lithium iron phosphate batteries and is based on a series of technology management systems from Shihe Technology to create safe, stable, and efficient electricity consumption solutions for users



Wang Min introduced that the container energy storage system has the advantages of low construction cost, short construction cycle, high modularity, easy transportation and installation, and can meet the needs of large-scale industrial parks, production plants and other application scenarios.



In addition, to meet the demand of the domestic market, the company has developed various small and medium-sized industrial and commercial energy storage devices that are becoming more mature. One energy storage cabinet device can store 200 kilowatt hours of electricity, with a wide range of application scenarios. "According to the needs of customer enterprises, these cabinets can be combined and supplied in large quantities to achieve peak electricity consumption and effectively reduce production costs for enterprises



When it comes to why he chose Huizhou in the first place, Wang Min gave his answer. There is a good upstream and downstream industry chain here, and most of the raw materials can be purchased locally, making it a fertile land for the development of new energy storage industries. The project has obvious advantages in transportation and other operating costs when settled in Huidong, and the local government is very supportive of us. "Wang Min said that in terms of the new energy battery industry, Huizhou is a gathering place with a complete industrial chain and complete categories in China. Now, it is vigorously developing the new energy storage industry, Relevant plans and supportive policies have been introduced, giving him confidence in the company's future development and hoping to progress together with Huizhou to embrace a new blue ocean of new energy storage industry.