On April 24, Horizon Robotics, a Chinese autonomous driving solution provider,  officially released six chips of Horizon Journey™ 6 series, supporting low, medium, and high-scale intelligent driving applications. Among them, the Journey 6E/M chips feature computing power of 80 TOPS and 128 TOPS respectively; while the Journey 6P chip is suitable for intelligent driving in all scenarios, with a computing power of up to 560 TOPS.

The first cooperative auto companies and brands for the Journey 6 series chips include SAIC Moto, Volkswagen Group, BYD, Li Auto, GAC Group, Deepal, BAIC Group, Chery Auto, EXEED, VOYAH, as well as multiple Tier1, software, and hardware partners. Horizon stated that the Journey 6 series will start delivery of the first mass-produced model within 2024 and is expected to achieve mass delivery of over 10 models by 2025.

BYD’s director Mr. Wang Chuanfu made a surprise presence at the product launch. Assuming the development of new energy industry is a game, Wang thought that the first half of this game focused on electrification, and the second half will be on intelligence. If the first half is about batteries, then the second half will be chips.

It is reported that as early as 2021, BYD and Horizon had established a strategic cooperation relationship, and millions of BYD vehicles have been equipped with Horizon’s Journey 2, 3, and 5 series chips in 2024. As BYD will continue to integrate Horizon Journey 6 chips into its automobiles, the two parties will promote the popularization of advanced intelligent driving by deepening collaboration.

Amid the development trend of electrification and intelligence in automotive industry, intelligent driving chips will embrace vast growth. As to manufacturers, representatives from abroad include Tesla, NVIDIA, Mobileye, Qualcomm, and AMD, while Chinese manufacturers include Horizon, Black Sesame, and others.

Meanwhile, the research and production of intelligent driving chips also face technological and performance challenges. Due to the characteristics of automotive chips, intelligent driving chips are required to meet high stability and long lifespan under extreme conditions.

In addition, with the continuous development of autonomous driving technology, the performance and computing power requirements for intelligent driving chips are also constantly increasing, which requires chip manufacturers to pursue further innovation and breakthroughs in the future.

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• [Insights] China’s Position in EV Battery Market to be Shaken as the Mass Production Race of All-Solid-State Battery Industry Speeds up?
• [News] China’s New Energy Vehicle Penetration Rate Exceeds 40%, Expected Optimistic Growth by 2024

(Photo credit: Pixabay)

• With the Ongoing Expansion of Global EV Battery Market, China’s Dominant Position Steadily Strengthens

In recent years, the rapid growth of EV and energy storage markets has driven robust demand for lithium-ion batteries (LiBs). Data shows that in 2023, the total shipment of LiBs exceeded 1 terawatt-hour (TWh) for the first time, with the market size growing more than tenfold compared to 2015, and EV battery shipment accounted for over 70% of the general battery shipment.

As the electric vehicle and energy storage markets continue to grow, the demand for LiBs will enjoy further expansion, with global LiBs shipment expected to outstrip 3,200 GWh by 2027.

Despite the fact that LiB was initially commercialized in Japan in the 1990s and long dominated by Japanese and South Korean manufacturers, over two decades later, China has leapfrogged the two nations. Currently, over 75% of the world’s LiBs are produced in China, marking China’s top position in manufacturing LiB.

Likewise, in the EV battery sector, which accounts for the largest demand in the LiB market, six out of the top ten manufacturers globally are headquartered in China, including CATL, BYD, CALB, Gotion High-Tech, EVE Energy, and Sunwoda, which are expected to hold increasingly higher market shares while the market shares of Japanese and South Korean companies is declining year by year.

For instance, Panasonic’s market share in the EV battery market has dropped to around 6%, and the combined market share of South Korean manufacturers to approximately 23%.

However, with the advancement and breakthroughs in next-generation automotive battery technology—all-solid-state battery (ASSB) technology—the position of traditional liquid-state battery is being challenged.

• Next-Generation Battery Technology Comes to the Fore

On January 3, 2024, PowerCo, a battery subsidiary of Volkswagen, announced that its partner, QuantumScape, had successfully passed its first endurance test on solid-state batteries, achieving over 1,000 charge-discharge cycles while maintaining a capacity of over 95%.

Additionally, in September 2023, another solid-state battery listed company based in the US, Solid Power, announced that its first batch of A-1 solid-state battery samples had been officially delivered to BMW for automotive verification testing. BMW aims to launch its first prototype vehicle based on Solid Power’s solid-state battery technology by 2025.

Last year, Toyota has repeatedly stated its intention to commercialize solid-state battery technology by 2027-2028.

• Does All-Solid-State Battery (ASSB) Technology Truly has the Potential to Overturn Liquid-State Battery Technology?

Traditional liquid-state LiB is primarily composed of cathode and anode electrodes, separator, and electrolyte. The cathode and anode electrode materials play the role of storing lithium, which affects the battery’s energy density, while the electrolyte mainly influences the motion rate of lithium ion during charging and discharging processes, typically using liquid (Organic solvents) as the electrolyte.

However, during the charge-discharge process of traditional liquid-state LiB, side reactions can easily occur on the electrode surface. For example, lithium dendrites formed on the surface of the anode electrode can easily penetrate the separator, causing a short circuit between the cathode and anode electrodes and leading to battery fires.

In addition, the liquid electrolyte is a flammable substance, making liquid-state batteries prone to ignition and explosion under high temperatures or when the battery experiences external impacts that result in a short circuit. Therefore, liquid-state battery faces significant challenges in terms of safety.

Compared to liquid-state LiB, the electrolyte in ASSB is solid, which is less volatile or prone to combustion. Meanwhile, solid-state electrolytes are temperature-stable and less prone to decomposition, rendering them highly safe.

Furthermore, solid-state electrolytes exhibit better stability and mechanical properties, providing superior suppression of lithium dendrites and thereby enhancing battery safety.

On the other hand, traditional liquid-state LiB is limited in their choice of materials due to their narrow electrochemical window and side reactions between the liquid electrolyte and the cathode and anode electrode materials. Solid-state electrolytes, however, offer a wider electrochemical window and fewer side reactions, allowing for a broader range of electrode materials to be used in solid-state battery.

This enables the use of higher energy density active materials. For instance, solid-state battery based on lithium metal anodes can achieve energy densities of over 500 Wh/kg, while liquid-state LiBs can hardly reach this level, with a theoretical energy density limit of 350 Wh/kg. Currently, traditional liquid-state LiBs have approached their theoretical energy density limit, and there’s little room for further improvement.

On top of that, ASSB also boasts better temperature adaptability (-30 to 100°C) and high power characteristic, which can help improve the operating temperature range and fast-charging performance of EV battery.

Meanwhile, as there is no need for liquid electrolytes and separators, the weight of ASSB cells can be reduced. Additionally, processes such as electrolyte filling, degassing, molding, and aging can be removed during the cell assembly process, simplifying the cell manufacturing process. As a whole, given its outstanding performance, ASSB indeed holds the potential to revolutionize liquid-state LiB.

Currently, ASSB, in face of a series of technical challenges, has not yet achieved large-scale production. These challenges include the batch preparation of electrolyte materials, interface stability/side effects between solid materials, as well as the breakthrough of technical hurdles in cell preparation processes, production equipment, and other aspects.

Still, with significant attention and investment from countries worldwide, including Japan, South Korea, Europe, and the US, ASSB has made important progresses and is expected to achieve mass production within 3-5 years.

• Will China be Overtaken in the Market Competition of All-Solid-State Battery?

Currently, ASSB has emerged as the high ground in the competition for next-generation battery technology. The development of ASSB has been listed as a national development strategy by major countries and regions such as Japan, South Korea, the US, and the European Union, and global enterprises are actively making inroads in this field.

Based on different solid electrolyte technical routes, ASSB can be divided into four types: polymer, oxide, halide, and sulfide solid-state batteries. Each of these technology routes has its own advantages and disadvantages. Currently, Japan and South Korea mainly select sulfide as the primary technical route.

In light of the development progress of ASSB in major regions globally, Japan is an early starter in R&D, which takes a lead in the application of patents, and accumulates the most solid-state battery patented technologies worldwide. Japanese companies like Toyota and Nissan have stated their intention to achieve mass production of ASSB around 2028.

In South Korea, major battery manufacturers like Samsung SDI, SK Innovation, and LG Energy Solutions continue to invest in R&D. Samsung SDI completed the construction of a pilot production line (S-line) for ASSBs in 2023 and plans to achieve mass production in 2027.

In the United States, solid-state battery development is primarily led by startups with high innovation potential. Companies like QuantumScape and Solid Power have solid-state battery products in the A-sample stage, while SES’ lithium-metal solid-state batteries have entered the B-sample stage. Other US companies such as Ampcera, Factorial Energy, 24M Technologies, and Ionic Materials have channeled more efforts in solid-state battery technical innovation.

Overall, the period around 2028 is expected to be tipping point for the mass production of ASSB.

Although China is currently the world’s largest manufacturer of LiB, there is still a significant gap between Chinese companies and international ones in terms of patent layout for ASSB.

Additionally, China’s solid-state battery technical routes are diverse, with a focus mainly on semi-solid/state-liquid hybrids, with semi-solid-state battery achieving small-scale production and adoption in vehicles, but investment in ASSB remains insufficient in China, and resources are dispersed. This has led to a significant difference compared to international forerunners.

Therefore, in the future competition for ASSB, companies from Japan, South Korea, Europe, and the US have the opportunity to surpass China and reshape the competitive landscape of future EV battery industry.

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• [News] The US Administration Rumored to Announce USD 7 Billion Grant for Samsung to Boost Chip Capacity
• [News] TSMC Receives USD 6.6 Billion for Chipmaking from the US Government, Commits to Constructing Third Fab

(Photo credit: Pixabay)

Japan and the EU are reportedly set to launch formal cooperation in the research and development of advanced materials, such as chips and electric vehicle batteries. According to a report from NIKKEI, this initiative aims to decrease their high reliance on suppliers from China. Iliana Ivanova, Commissioner for Innovation and Research at the EU, revealed that the two parties will establish a collaborative framework in April.

As per the same report, Commissioner Ivanova stated during an interview that both Japan and the EU remain globally leading in advanced materials innovation. In 2020, the EU’s investment in this industry totaled EUR 19.8 billion, while Japan’s amounted to EUR 14 billion.

Under the framework tentatively named “Dialogue on Advanced Materials,” Japan and the EU plan to hold regular meetings to discuss collaboration proposals. Institutions engaged in advanced materials research from both sides will also participate. Commissioner Ivanova highlighted that the areas of cooperation include renewable energy, transportation, construction, and electronic materials. She also expressed hope for Japan and the EU to jointly develop international standards for advanced materials.

The report highlights a specific area of focus: the development of sodium-ion batteries, which are seen as the most promising next-generation power source for electric vehicles.

In recent years, the rapid growth of the global electric vehicle and energy storage markets has driven robust demand for lithium-ion batteries. As per TrendForce’s data, with further expansion expected in these sectors, the demand for lithium batteries is projected to continue growing, surpassing 3200GWh in global shipments by 2027.

Currently, China dominates the global lithium battery supply chain system, including battery metal refining, battery material processing, and battery manufacturing. Per TrendForce, more than 75% of lithium batteries worldwide are currently produced in China, making it the global leader in lithium battery manufacturing capacity.

In regard to China’s competitive advantage in the LiBs field today, it’s difficult for Japanese and South Korean companies to surpass. And it’s even more challenging for the US and Europe to catch up with China, due to the weak foundation of LiB industry locally. However, the emergence of inexhaustible and inexpensive sodium batteries may have offered a solution for the world to reduce its reliance on China.

Sodium-ion batteries do not require the use of rare metals controlled by China and have lower production costs compared to traditional batteries. The EU hopes to make progress in this area to meet the increasing demand brought about by the transition to electric vehicles.

Additionally, the EU aims to leverage Japan’s leading knowledge in metal nanoparticle technology, which can enhance solar energy conversion efficiency. Nanoparticle materials can also help smartphones save energy. In the future, the EU plans to allocate significant funding to advanced materials research, fully supporting related research and large-scale production.

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• [News] Japanese Semiconductor Equipment Sales Smashed the JPY 300 Billion Threshold in February
• [Insights] EV Development Faces New Challenges, Porsche CFO Suggests Delay in European Ban on New Fuel Cars

On March 28th, Xiaomi officially launched the electric vehicle Xiaomi SU7, featuring three configurations: the standard version priced at CNY 215,900, the Pro version at CNY 245,900, and the Max version at CNY 299,900.

According to Xiaomi Automotive’s Weibo account, within less than 30 minutes of the launch, the SU7 secured 50,000 orders.

In March 2021, Xiaomi founder Lei Jun officially announced Xiaomi’s venture into the automotive industry. Nearly three years later, with the release of the Xiaomi SU7, its associated suppliers have emerged. These include global giants like Qualcomm, NVIDIA, and Bosch, alongside Chinese suppliers such as BYD, CATL, Yangjie Electronic Technology, TCL, and BOE.

Regarding chip supply, NVIDIA provides autonomous driving chips for Xiaomi cars. The Xiaomi SU7 is equipped with two NVIDIA DRIVE Orin chips, delivering a combined computing power of 508 TOPS.

In the smart cockpit, the SU7 utilizes Qualcomm’s Snapdragon 8295 chip, built on 5nm technology. Compared to the Snapdragon 8155, the Snapdragon 8295 offers double the GPU performance and triple the 3D rendering capability. It supports integrated features like electronic side mirrors, surround-view cameras, and passenger monitoring.

Additionally, powered by the Pangolin OS smart car system, SU7 features a central control eco-screen, a flip-up instrument screen, HUD, and two rear-seat expansion screens.

The Xiaomi SU7 features a front central eco-screen measuring 16.1 inches, reportedly a Mini LED display supplied solely by TCL CSOT, as per Cailianpress. In the driver’s position, the SU7 is equipped with a 7.1-inch flip-up LCD instrument panel supplied by BOE, showcasing essential driving information. The 56-inch HUD head-up display is provided by New Vision Automotive Electronics.

Moreover, the SU7 features Xiaomi’s self-developed Super 800V Silicon Carbide high-voltage platform, with a peak voltage of up to 871V. Notably, besides the SU7, several models like the Zeekr 007, AITO M9, NIO, and Xiaopeng X9 also incorporate 800V Silicon Carbide.

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• [News] Xiaomi’s Internal Discussions Reportedly Revealed – Potential Goals for the Automotive Division to Rival Porsche and Tesla
• [News] Lei Jun States Xiaomi’s First Car Involves 3,400 Engineers with R&D Investment Exceeding RMB 10 Billion

(Photo credit: Xiaomi)

Porsche’s Chief Financial Officer Lutz Meschke has stated in a media interview following the conclusion of the Macan EV unveiling on January 25, 2024, that Europe’s initial plan to ban the sale of new fuel cars by 2035 may be postponed, as reported by Bloomberg.

TrendForce’s Insights:

• Prolonging the Battle and Gradually Narrowing the Gap with Chinese Automakers through Trade Barriers

In March 2023, the European Union passed a ban on the sale of new petrol and diesel cars starting from 2035.

Due to opposition from Germany and Italy, after coordination, the European Union agreed not to ban models using synthetic fuels. Range anxiety of electric vehicles continue to affect the willingness of end consumers to purchase cars, becoming the biggest obstacle to the growth of electric vehicle sales.

Coupled with China’s electric vehicle market, which accounts for over 50% of global BEV sales, nurturing Chinese automakers led by BYD, who continuously lead in the technical level of the the battery system, the electric drive system, and the electronic control system compared to Europe, America, and Japan.

Not long ago, Tesla CEO Elon Musk stated that without trade barriers, Chinese automakers would destroy the vast majority of their competitors. Whether this statement is exaggerated or not, trade barriers currently serve as the most effective means for Europe and the United States to prevent the continued growth and expansion of Chinese automakers, as exemplified by the United States’ IRA legislation and the European Union’s anti-subsidy investigations.

Delaying the implementation of the ban on the sale of new fuel cars can synergize with trade barriers, allowing consumers to maintain distance from Chinese-made electric vehicles. This approach provides breathing space for European automakers and US and Japanese automakers in the fuel car market.

With the Dual Strategy of Western and Japanese Automakers, Taiwanese Manufacturers Need Greater Flexibility in Planning

Assuming the postponement of the ban on the sale of new fuel cars, automakers in Europe, the United States, and Japan may simultaneously pursue synthetic fuel technology based on traditional fuel car frameworks while continuing to develop electric vehicle technology.

However, this dual approach, which does not favor one technology over the other, is likely to affect the allocation of resources for electric vehicles. During the era of internal combustion engine vehicles, dominated by Western, Japanese automakers, and Tier 1 suppliers due to various constraints such as patents and technological barriers, it has been challenging for Taiwan to access system-level supply opportunities.

In the era of electric vehicles, Fukuta Elec & Mach Co.’s all-in-one electric drive and control system has entered Mazda’s range-extended electric vehicle supply chain, while Foxconn has launched an electric vehicle manufacturing platform to vie for opportunities in complete vehicle manufacturing from carmakers. Consequently, Taiwan is gradually moving from Tier 3 and Tier 2 to Tier 1.

If automakers in Europe, the United States, and Japan adopt a dual strategy, Taiwanese manufacturers’ opportunities in the electric vehicle field may face reduction or fiercer competition.

Apart from continuously strengthening relevant technologies in the electric vehicle domain, Taiwanese manufacturers also need to enhance the commonality and modularity of their product lines to adapt to the ever-changing industrial regulations under geopolitical shifts.

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• [News] Six Companies, Including BYD and CATL, are Included in the U.S. Procurement Ban List
• [News] China’s New Energy Vehicle Penetration Rate Exceeds 40%, Expected Optimistic Growth by 2024

(Photo credit: Pixabay)