The development of new energy vehicles is a crucial national strategy and a key driver for supply-side reforms. As the industry grows, policies have increasingly focused on supporting and advancing smart manufacturing in power battery production. While market speculation may fluctuate, the fundamental nature of the battery industry remains rooted in manufacturing. Ultimately, battery quality still depends on technological innovation, advanced production processes, and high-level manufacturing capabilities.
Recently, Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology, outlined key initiatives at the 2017 Annual Conference of the China Automotive Power Battery Industry Innovation Alliance. Several critical tasks were highlighted, including enhancing automation and intelligence in production to address safety concerns, accelerating the development of power battery equipment, and promoting large-scale intelligent manufacturing technologies. Additionally, efforts are being made to foster collaboration across the entire industry chain by building public service platforms that support joint innovation. Recycling and resource reuse are also being considered through product design, manufacturing processes, and equipment improvements.
It's clear that the Ministry places great emphasis on smart battery manufacturing. Elevating production standards has become a key focus for further industry growth. In the future, smart manufacturing will be a vital direction for battery companies aiming to stay competitive.
Smart manufacturing represents the integration of traditional manufacturing with digital, artificial intelligence, and next-generation information technologies. It aims to optimize the entire product lifecycle by enabling real-time data perception, decision-making, execution control, and deep learning. The goal is to reduce costs, shorten production times, improve product quality, and promote environmental sustainability.
Since 2012, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Finance have launched special projects to advance smart manufacturing equipment. The Ministry also issued detailed guidelines for the acceptance of integrated application and standardization of intelligent manufacturing. This has led to rapid development in China, with hundreds of digital production lines, workshops, and factories now under construction or already operational.
One example of this transformation is BYD’s battery factory, which showcases an impressive level of automation. As of March 2017, its production capacity reached 16GWh, with an additional 10GWh plant in Qinghai, expecting a total capacity of 26GWh by 2018. Behind this scale is the strong support from smart manufacturing systems.
Cost reduction is essential for improving market competitiveness, and large-scale, intelligent manufacturing is the way forward. Shen Ye, Senior Director of BYD Battery, emphasized that automated equipment, process inspection systems, and manufacturing execution systems must work together as an integrated system.
Another remarkable case is Wattmar’s battery automation PACK shop, known as the Wattmar Wisdom Factory. Every step of the production line—from gear assembly, welding, coating, clamping, to testing—has been fully automated. The workshop features high levels of automation, information integration, and intelligence, forming a comprehensive system that combines data, information, and services.
For traditional battery companies, transitioning to smart manufacturing is not just a choice—it's a necessity. Haisida, established in 1992, has continuously upgraded its manufacturing systems over 25 years. By improving equipment accuracy and automation, the company introduced South Korean production lines, achieving full automation and significantly shortening product development cycles. It also enhanced digitalization, leading to better efficiency and quality.
Similarly, Yilv Lithium, a veteran in the industry, has undergone a dramatic transformation. Starting with semi-automated operations due to financial constraints, it gradually moved toward full automation and eventually reached Industry 4.0. In 2016, it launched a fully automated lithium-ion battery production line, increasing per capita output tenfold. Its performance in 2017 reflected this transformation, with significant revenue growth driven by improved battery capacity and smart manufacturing.
Intelligent manufacturing is shaping the future of battery production. It enables companies to enhance quality, capture market share, and stay ahead of the competition. Younger companies, less constrained by outdated infrastructure, can more easily adopt smart technologies. Meanwhile, older firms face challenges in adapting due to legacy systems, capital limitations, and outdated management practices.
Companies like Yilv Lithium, Haisida, BYD, and Wattmar represent the broader trend of smart manufacturing in China. As the industry evolves, the gap between those who embrace smart technologies and those who don’t will only grow wider. With the ongoing shift, more battery manufacturers are either proactively or passively joining the smart manufacturing wave, ensuring long-term competitiveness in a rapidly changing market.
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