"There is only one way: increase Tesla's market share and expand its profitability."
Musk looked at Xia Yu when he said this.
"The completion of Tesla's Shanghai factory will not only increase production capacity but also further open up the Chinese market. The upstream supply chain will also be further localized, and we will seek excellent suppliers locally. For batteries, we have signed a short-term supply contract with LG Chem, but I am more optimistic about the battery cells launched by Jierui Power."
After going around in circles for so long, Musk finally got to the point. He planned to cooperate with Xia Yu.
Tesla's self-developed battery project has been ongoing in order to avoid being strangled by others in terms of batteries. Unfortunately, the project has been progressing slowly, the accumulation of self-developed battery technology is weak, the performance is relatively weak, and the cost is relatively high, which is not as good as directly purchasing finished products to produce battery packs.
Japan's Panasonic has always been Tesla's largest partner, but after more than ten years of close cooperation, there is now a trend of gradual estrangement. LG Chem has taken advantage of this opportunity, but it is better for models in the Chinese market to use Chinese batteries.
After careful consideration, Musk chose JERI Power, an emerging company in the power battery industry. It is not large in scale but has advanced technology and has even received an order from Daimler-Benz.
If you have to choose, choose the best. CATL, another Chinese battery company that cannot be avoided, has also received orders from BMW, but the advantages of their ternary lithium batteries have not yet been demonstrated. They have only defeated lithium iron phosphate batteries in terms of energy density.
Compared with Jierui Power, CATL wins in terms of size and early development, but the newcomer still has an advantage in technology, and it is technology that Musk values.
As Panasonic gradually falls behind in technology, Tesla will look for new partners and kick them out after the contract is completed. Similarly, as long as Jierui Power is surpassed by others tomorrow, Xia Yu will only be Musk's friend in life, and no longer a business partner.
Of course, they haven't started collaborating yet!
"Oh, that's what Daimler's new president, Ola Källenius, said. He even invited me to build a factory in China. I said I'd have to think about it."
Xia Yu's words immediately caught the attention of the two people, because Tesla also has plans to build a factory in the United States.
Tesla's Shanghai factory supplies not only the Chinese market, but the entire Asian market. Its overseas branch factory in China serves the entire Europe.
It is easier to build a factory locally than to manufacture the car in the United States and then export it, and the cost can be further reduced. However, as the birthplace of fuel vehicles, Europe does not have any competitive power battery companies.
If JETRO Power builds a factory in the same country, Tesla will no longer have to worry about the most important link in its European supply chain.
Musk was thinking a lot, and it seemed that he had to modify his original plan. Originally, he only planned to cooperate with JETRO Power in Asia, but now it is not impossible to expand to the entire Eurasian continent.
That would be great. Jierui Power will defeat Panasonic and become Tesla's largest partner in power batteries. After expanding its scale, it is not impossible for it to challenge CATL's position as the big brother in China.
"Daimler has made a wise decision. The future belongs to electric vehicles. We must accelerate the development of sustainable energy. Sherlock, you have a heavy responsibility!"
Musk brought the topic back to Xia Yu.
"Yes, it won't be long before Jierui Power's production capacity reaches its limit. I'm expanding the factory and increasing production scale. We're also selecting sites for domestic branches. We're also stepping up research and development on the next-generation 2.0 battery cells. Solid-state lithium batteries are the future."
Xia Yu's words shocked the two again. This amount of information was a bit too much. Your new technology was just released not long ago, and now you have another breakthrough?
Musk feels like he wants to bang his head against the wall. He just acquired Maxwell in February this year for $218 million at a 55% premium. Maxwell is a magnesium company that focuses on the research and development and production of supercapacitors and dry battery electrodes. Later, he acquired Hibar, a battery manufacturing equipment company in the Maple Leaf Country, to increase his battery self-research capabilities. Now others are starting to impact solid-state lithium batteries, but he hasn't even developed a product of the same level yet!
There is no future in self-research. The right choice is to follow Xia Yu and buy batteries, otherwise all the investment will be wasted.
"Although it's a bit presumptuous, I still want to ask about the research progress."
Musk and Larry Sr. looked at each other, and finally it was Larry Sr., Tesla's independent director, who spoke up.
"The progress is encouraging. The technology will be mature and ready for factory production by 2020 at the latest."
Xia Yu estimated in his mind and said that the 2.0 battery cell mainly involves upgrading the electrolyte. He has already come up with several relatively economical plans. Once the detailed specifications and production process are finalized, it can be officially put into production.
The laboratory conditions at the Hive Base are undoubtedly advanced, especially in the research of new materials. Without this support, Xia Yu might not be able to achieve such good results even if he invested hundreds of millions of dollars. It would be better for him to make money by lending money and cutting leeks.
He doesn't want to be such an unambitious rich man. High-tech industry is the stage for him to display his talents (cheats), break through foreign technological blockades, and sell products to every corner of the world.
Power batteries are just the first step, and this first step alone can make him worth hundreds of billions and lay the foundation for a trillion-dollar fortune in the future.
At that time, he was not only the richest man in China, but also could break into the top ten internationally. It seemed that he was willing to be lazy and bring Bezos down.
The richest person in the world should be the owner of a technology company, not the owner of an Internet supermarket. At least that's what Xia Yu thinks and does.
My dear, there is more to this chapter. Please click on the next page to continue reading. It will be even more exciting later!
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