The development of new energy vehicles has become a key national strategy, driving supply-side reforms and reshaping the automotive industry. As part of this transformation, policies have increasingly focused on supporting and advancing smart manufacturing in power battery production. While market speculation and investment hype may fluctuate, the fundamental nature of the battery industry remains rooted in manufacturing. Ultimately, battery quality will continue to rely on 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 for the future development of power batteries at the 2017 Annual Conference of the China Automotive Power Battery Industry Innovation Alliance. These initiatives emphasize several critical areas:
First, improving production automation and intelligence to enhance safety standards. Second, accelerating the development of power battery equipment and large-scale intelligent manufacturing technologies to better support the growth of new energy vehicles. Third, fostering collaborative innovation across the entire industry chain by building public service platforms that promote shared research and development. Lastly, addressing recycling and reuse by integrating sustainable design, efficient manufacturing processes, and advanced equipment.
It is clear that the Ministry of Industry and Information Technology places significant emphasis on smart battery manufacturing. Enhancing production levels has become a crucial breakthrough for the industry’s continued growth. Looking ahead, smart manufacturing will remain a central focus for battery companies seeking to stay competitive.
Intelligent manufacturing represents the integration of traditional manufacturing with digital technology, artificial intelligence, and modern information systems. It aims to optimize the entire product lifecycle through functions such as data perception, decision-making, execution control, and deep learning. The goal is to reduce costs, shorten production cycles, 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 smart manufacturing equipment projects. The Ministry also introduced the "Detailed Rules for the Acceptance of Integrated Application and Standardization of Intelligent Manufacturing and New Models (Interim)." This has led to rapid growth in smart manufacturing across China, with hundreds of digital production lines, workshops, and factories now under construction or operational. Leading battery manufacturers are actively embracing this transformation.
One example is BYD, which has made significant strides in smart battery manufacturing. During a visit to their factory, I was impressed by the high level of automation and efficiency. As of March 2017, BYD had a production capacity of 16 GWh, with a 10 GWh plant in Qinghai already completed. By 2018, the company aimed to reach 26 GWh, driven largely by its smart manufacturing capabilities.
Cost reduction is essential for maintaining competitiveness in the battery industry. Large-scale and intelligent manufacturing are the future directions for production, offering effective ways to cut costs and improve quality. Shen Ye, Senior Director of BYD Battery, emphasized that automated equipment, process inspection systems, and manufacturing execution systems must be integrated into a cohesive system to achieve these goals.
Another notable example is Wattmar's automated battery assembly plant, known as the Wattmar Wisdom Factory. Every stage of the production line—from gear assembly to welding, coating, clamping, and testing—has been fully automated. The facility is characterized by high levels of automation, information integration, and intelligent systems, forming a comprehensive network of data, information, and services.
For established battery companies like Haisida, transitioning to smart manufacturing has been a strategic necessity. Since its founding in 1992, Haisida has continuously upgraded its operations, adapting to industry challenges. To address issues like poor consistency and low efficiency, the company invested in South Korean production equipment, achieving full automation and intelligence. This not only shortened the product development cycle but also improved digitalization in material handling and equipment management.
Similarly, Yilv Lithium has undergone a dramatic transformation. Starting with semi-automated production due to financial constraints, the company gradually evolved into an Industry 4.0-ready factory. In 2016, it launched a fully automated lithium-ion battery production line, significantly boosting per capita output. By 2017, the company reported a 63.65% increase in operating income, with lithium battery revenue rising by 155.63%. This success was largely attributed to its smart manufacturing upgrades.
Smart manufacturing is no longer just an option—it is the future of battery production. It enables companies to improve quality, reduce costs, and gain a competitive edge. Younger battery firms, unburdened by outdated infrastructure, have a natural advantage in adopting smart technologies. Meanwhile, older companies face challenges related to capital, management, and technology, making the transition more complex.
Companies like Yilv Lithium, Haisida, BYD, and Wattmar represent the broader trend of smart manufacturing in China’s battery sector. As the industry continues to evolve, the pace of equipment upgrades is accelerating. More companies are either proactively or passively joining the smart manufacturing wave, and the gap between those who embrace it and those who don’t is likely to widen further.
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