On April the 15th, Aucksun announced a strategic cooperation agreement between its subsidiary company, Tenpower and Super Soco. Super Soco is part of Xiaomi’s ecosystem company, according to market consensus, Super Soco has ordered four hundred thousand units of e-bike and e-scooter battery pack from Tenpower through 2019 to 2021, tallying up to 800 million RMB.
The adaption of NCA batteries in the power tool market is growing steadily, increasing from 0.95GWh in 2016 to 171GWh in 2018. Taking into account that the power tool market consists entirely of cylindrical li-ion batteries, which is a perfect match for NCA chemistry system. We estimate that by 2020, the NCA production capacity will reach 2.44GWh, occupying more than 40% of market share. Currently the main suppliers of NCA battery manufacturer are Samsung SDI, LG Chem, Panasonic and Jiangsu Tenpower.
Tenpower is the first company in China to achieve mass production of cylindrical NCA battery cell. Since 2017, Tenpower’s products has already seen wide application in industries including micro-mobility, power tools, gardening tools etc. Tenpower has secured a high-quality stable supply of NCA materials through strategic partnership with the same suppliers as Samsung SDI, Sony etc.
On April 3rd, Tenpower and Dayi M&E Tools signed a strategic procurement cooperation agreement, which states that Dayi will procure 150 million units of NCA cylindrical battery from Tenpower through 2019 to 2021. By the end of 2019, Tenpower will have established 4 high speed 18650 production line, according to people familiar with the matter. Furthermore, Tenpower will have two fully operational high speed 21700 production line by the end of 2020.