BYD’s energy storage business is under the battery business

Recently, the energy storage business originally belonging to the 14th working department of BYD was officially transferred to the second working department of BYD group, which is also known as the battery working department.

 

 

 

At the same time, the author found that on December 24-25, BYD successively invested in the establishment of three subsidiaries with a registered capital of 100 million yuan, respectively for Fudi mold, Fudi technology and Fudi power.

 

 

 

Among them, the legal representative of Freddy power is Luo Hongbin, who is now the general manager of the 14th working department, and the BYD Electric Power Research Institute under the 14th working department is the main body engaged in energy storage affairs of BYD. It is also understood that many personnel of the former BYD Electric Power Research Institute have signed in to the new company Freddy power.

 

 

 

As we all know, BYD has been engaged in energy storage business for a long time, and it is also one of the earliest domestic enterprises engaged in energy storage business. In 2008, BYD Electric Power Research Institute was formally established and began to lay out the energy storage field. By the end of 2018, BYD’s total global shipments of energy storage exceeded 600mwh.

 

 

 

Zhang Zifeng, marketing director of the 14th working department of BYD, once told the author that in addition to charging pile affairs, the primary work of BYD electric power academy is energy storage. There are more than 500 people in total, more than a third of the R & D personnel, and the energy storage battery accounts for about 3% of the battery of the whole company.

 

 

 

Although the energy storage business accounts for a relatively small proportion of the company’s overall production capacity and revenue, as a strategic business of BYD, BYD energy storage has more than ten years of development experience in system integration. Energy storage system products comprehensively cover the application scenarios of household, industry and commerce, sharing level, etc.

 

 

 

In fact, the transfer of this transaction is also related to BYD’s strategy of separating the power battery. In 2018, BYD began to start the separation of the power battery business, and plans to seek independent listing by the end of 2022.

 

 

 

However, since 2018, domestic power battery sales have been under pressure, and power battery layout and energy storage have become an important direction that lithium battery enterprises cannot avoid. Therefore, there is a reason to transfer the energy storage business to the power battery department. There is a stronger synergy between energy storage and power battery.

 

 

 

Before that, the delicate relationship between the battery work department and the energy storage department has emerged from some things. In August last year, BYD energy storage emphasized at the energy storage western forum that it would no longer participate in project bidding alone and focus on being a supplier of energy storage equipment. In the bidding for Pinggao group project at the end of last year, BYD Huizhou, a battery cluster supplier under the second working department, suddenly returned at a low price, which shocked the industry.

 

 

 

From January to November this year, the total installed capacity of BYD power battery and energy storage battery is about 11.66gwh, which is second only to Ningde’s in China. Up to now, the planned capacity of BYD’s power battery has reached 120gwh, and 40gwh has been put into operation. In order to further consolidate its position in the energy storage market, BYD announced a plan to increase its capacity by 10 times in December, and hopes to launch a dual battery energy storage system in 2020, which will satisfy all planned projects through two versions of other high-voltage energy storage systems.

 

 

 

BYD has benefited from the “internal straight supply form”, which gradually affects the operation efficiency of the arrangement and the reaction speed of the shopping mall as the competition becomes more fierce. Wang Chuanfu once said to the outside world that he would make serious adjustments to BYD’s arrangement structure and get through the boundaries between various industries and working departments. In the future, all departments will operate independently or even separate from the listing. Today, BYD is in an orderly layout.

 

 

 

According to the public information, at present, he long, vice president of BYD, is the CEO of the battery work group, the second working department of BYD. It is not known whether the adjusted energy storage affairs will be further adjusted in terms of the corresponding strategies of domestic and foreign shopping malls.