The competition between BYD and CATL is escalating, and the head effect of the power battery industry is becoming increasingly obvious

On July 4, CATL announced the establishment of a joint venture battery company with Dongfeng Motor. On July 5, BYD signed a strategic cooperation agreement with Changan Automobile Co., Ltd.

BYD and CATL are both building their own “circles of friends”, and competition between the two sides is becoming increasingly fierce.

The power battery industry has entered the elimination stage. It has always been ranked third in the power battery industry, but this year it is in deep debt crisis. The industry reshuffle is accelerating.

In recent years, under the influence of policy support and other factors, new energy vehicles have developed rapidly, and the power battery market has also accelerated its layout. The rapid layout of the power battery market has led to overcapacity in the industry. In 2017, the capacity utilization rate of power battery companies was generally very low. Except for CATL, which was as high as 89.7%, only BYD and Farasis Energy were around 40%, and other companies were far below 40%.

The decline in subsidies and the increase in requirements have further worsened the survival conditions of small and medium-sized power battery companies. Market resources are gradually gathering towards advantageous companies, and the power battery industry is facing a "knockout competition."

Small and medium-sized enterprises are in a difficult situation, and competition among leading enterprises is becoming increasingly fierce. In addition to competing in production capacity and sales, BYD and CATL are seeking external assistance. The future of the power battery industry is still full of variables.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.