Research and analysis of Chinese lithium-ion battery manufacturers: Zhengli New Energy / Tafel New Energy

Market Position/Overview: Zhengli New Energy is an emerging battery manufacturer based in Jiangsu, China.
Founded in 2016, the company is relatively new but is growing rapidly in the automotive battery market.
Its product portfolio includes power batteries (for EVs and HEVs), energy storage batteries, and even some aircraft batteries.
By 2023, the company will rank around 10th in China in terms of installed power battery volume, with a market share of 1-2%.
In particular, the company has established its presence in the ternary battery sector, and according to some statistics, it will rank 7th-8th in terms of domestic ternary battery shipments in the first half of 2023, and 10th in terms of total shipments.
Main products and applications: Zhengli Xinniang produces both lithium ternary (NCM) batteries and lithium iron phosphate (LFP) batteries.

For passenger car EVs, we offer high-nickel NCM cells that help improve the range of high-performance EVs. On the other hand, we also offer low-cost LFP cells, creating a well-balanced product portfolio.
We are also working on unique products such as aircraft batteries, and are developing high-power batteries for small electric aircraft and drones.
In terms of applications, our main focus is on power batteries for passenger cars and commercial vehicles.
In particular, they are being used in mass-produced vehicles by emerging Chinese EV manufacturers.
We are also partially involved in energy storage applications, supplying batteries for small and medium energy storage systems.
Key customers and partners: Zhengli’s customers include emerging EV manufacturers and domestic Chinese vehicle manufacturers.
We supply batteries to emerging EV brands such as Leapmotor and Hozon for use in their mass-produced vehicles.

There are also examples of adoption in specific models of major manufacturers, such as FAW Hongqi’s EV and Guangqi Dengqi’s plug-in hybrid vehicles.
In this way, we have grown by expanding our sales channels to relatively new automakers, known as “new car makers.
In terms of partnerships, the company has announced a strategic cooperation with Tafel in 2023, and is cooperating with Tafel in technology and market (Tafel and Zhengli Xinniang are sometimes considered related companies in the industry).
Tafel is currently in the process of raising capital for an IPO, which is expected to lead to more business with major automakers.
Recent developments: Zhengli XinNeng is making its presence felt by launching new batteries and participating in technology events as we enter 2023.
In April 2023, the company announced a large cylindrical battery called “Qilong” (for ultra-long range packs of over 170 kWh), which combines energy density and safety, and demonstrated its high level of safety through the use of semi-solid electrolyte.
In terms of business performance, the company has been in the red since its inception (accumulated losses of over RMB2.7 billion in the past three years).
The company continues to invest aggressively in R&D and capital expenditures. The company is seeking to list on the Hong Kong market and plans to use the funds raised to expand its production capacity and improve its debt.
In the market, the company is attracting attention as a “newcomer in the battery industry” along with Sunwoda and REPT, and may become the eye of a typhoon in the battle for market share in the future.