Xinneng An, a company with the utmost respect for battery safety, once resolutely abandoned a project worth over a hundred million yuan after identifying potential safety risks. Despite many communications with the client, both parties could not reach a consensus due to differences in philosophy and background. Choosing to give up such a sizable profit was undoubtedly a difficult decision. However, after careful consideration, Xinneng An firmly believed that this decision was correct and necessary.
Yu Qingfeng, Chief Technical Officer of Xinneng An, confidently stated that with the natural selection of the market, safer and more reliable products will ultimately prevail. Products that withstand the test of time will win consumer favor, and people are willing to pay for them. Dr. Yuan values long-term development and makes strategic decisions based on the principle that product safety must be given absolute priority.
To achieve the ultimate in safety, Xinneng An has set its own quality standards much higher than industry ones and independently carries out six major test scenarios, demonstrating over 200 testing capabilities. These include high-temperature testing, thermal runaway tests for single cells, foreign object puncture of cells, battery collision and compression, drop-impact, and battery water spray tests to comprehensively and strictly monitor the safety performance of every battery.
Behind this spirit of pursuing utmost safety lies Xinneng An’s silent persistence and massive investment. The philosophy of safety first requires the company to invest more time and money into research and development and to use materials and processes that are costlier. Despite this, Xinneng An remains committed to technological innovation, guarding the absolute safety of products while striving to maintain cost balance. This is their strong competitive advantage and is the foundation for the company’s ability to offer customers a 20-year quality guarantee commitment.
“Long-termism, in my understanding, means building a company that can withstand the test of a century,” said Feng Zhu, Vice President of Test Verification and Safety Reliability at Xinneng An, expressing this in conversation with 36Kr along with Dr. Yu Qingfeng. The following is excerpted from their conversation.
Technology is Xinneng An’s core competitive strength
36Kr: In the recently launched Jumbo-Power series of new products by Xinneng An, one highlight is that the product can continuously discharge at a high power of up to 40A for up to 6 minutes, greatly enhancing the user experience. Faced with such a technical challenge, what difficulties does Xinneng An need to overcome?
Yu Qingfeng: Batteries used during discharge need to release energy, which can cause temperatures to rise and risk triggering a temperature protection mechanism. Xinneng An products have a smaller temperature rise at the same current status, thus avoiding triggering the protection mechanism. Therefore, using our products, you won’t encounter issues with unstable current output. The reason why the Jumbo-Power series can achieve a discharge endurance higher than the industry average is precisely due to our efforts in material selection, structural design, and system optimization at every level, striving to reduce battery impedance and ensuring efficient energy output to support the use of high currents. This is the technical advantage that shines in every detail of Xinneng An’s products.
36Kr: In addition to improving battery performance, the general public is equally concerned about the battery’s cycle life. Technologically, how does Xinneng An maximize the extension of battery service life? Are there any technological breakthroughs?
Yuan Qingfeng: The main reasons for the degradation of battery cycle life usually include the loss of active lithium sources, such as the loss of active lithium released from the cathode; on the other hand, it might be the overall deactivation of the active material, even if lithium is still present, but the material can’t intercalate lithium ions, which shortens its lifespan. Facing these challenges, the Xinneng An technical team has greatly extended the cycle life of batteries through continuous optimization of materials, structures, and system designs.
Understanding the factors that accelerate the loss of active lithium is crucial, and temperature is one of the key factors. In product design, we are committed to maintaining low temperature rise to extend battery life. Moreover, this is also a systemic project, involving a good match between the cathode and the electrolyte. We have adopted new functional additives to stabilize the protective film on the material’s surface, further enhancing the battery’s reliability.
Regarding safety issues caused by over-discharge, such as the risk of flammability and explosiveness, through internal experiments, we found that battery over-discharge may produce reductive gases like hydrogen and carbon monoxide, and possibly oxidizing gases such as carbon dioxide, and even alkanes like methane or ethane. By deeply understanding the reasons behind these phenomena, we identified three possible sources for the production of oxidizing gases: decomposition of the electrolyte at high voltages, redox reactions between the electrolyte and battery materials, and the decomposition of materials themselves. Solutions to these issues include limiting excessive voltages, increasing material structural stability, and optimizing electrolyte formulations.
In the pursuit of the ultimate safety of our products, we must invest heavily in extensive testing, involving considerable costs. Some technologies are actually transferable between different business segments. For example, some customers require batteries or cells to undergo abuse tests, such as nail penetration tests. Such tests require cells to not catch fire or explode when pierced. We developed a technology called “STS” that has been successfully applied to different product lines, ensuring product performance and achieving cost reduction. Through cooperation with upstream suppliers, continuous technological progress not only improves product competitiveness but also achieves cost reduction and efficiency enhancement.
Reducing costs is a systematic project that touches on many fields. For example, reducing the cost of raw materials, that is, reducing BOM costs; at the same time, reducing manufacturing costs is also an important aspect. Designing products for easy maintenance and service, thereby extending product life, is also an effective way to reduce costs. In this process, technological innovation plays a key role and often brings significant cost reduction effects.
The reason why Jumbo-Power series products can achieve very high safety standards is that they have undergone various extreme tests during development. To ensure the safe operation of batteries, Xinneng An has conducted tests in six major scenarios, including intense fire, single-cell thermal runaway, foreign object penetration, battery collisions and extrusions, drop and impact, and battery water immersion. To maintain safety in these tests, the batteries need to meet specific requirements. Xinneng An has implemented internal testing standards that are above the usual, and these tests need to be completed individually, as well as in combination to verify.
To ensure product safety and reliability throughout its entire lifecycle, Neng’an sets testing standards that are stricter than national safety standards. Before leaving the factory, a product has to pass at least 10 extreme tests. Such underlying logic and design philosophy ensure that it meets the usage requirements of top customers, pursues higher product quality and safety, and reflects Neng’an’s firm stance on product value. When setting testing standards, Neng’an mainly refers to the high standards of the automotive industry and makes necessary adjustments.
We deeply regret the recent frequent incidents of electric two-wheelers catching fire. According to analysis, such accidents are usually caused by the uncontrolled release of energy within the battery, leading to safety incidents. The root cause is internal short-circuiting, which is usually not caused by external factors. Accidents originating from product design flaws or quality control issues may lead to short circuits after a period of usage. Therefore, we should hold a reverent attitude towards battery safety, manage energy well, to prevent tragedy from happening.
In the relentless pursuit of product quality and safety, Neng’an adheres to the corporate spirit of exceeding traditional industry standards and bravely bearing social responsibilities. The company is not content with meeting industry benchmarks, but has established more stringent company standards to ensure that products remain safe and reliable throughout their entire life cycle, under all working conditions. This practice reflects the great concern for the safety of consumers’ lives and property and is also an active response to social responsibility.
Neng’an’s decision-makers always talk about “ultimate safety” and the concept of “full lifecycle,” which is precisely the philosophy of long-termism deeply ingrained in the company. Long-termism, in Neng’an’s understanding, is about building a century-old enterprise that can withstand the test of time. In practice, a typical example is Neng’an’s provision of over 20 years of warranty for most products, which conveys its strong confidence in product quality. The core competitive advantage of the enterprise lies in adhering to the principle of safety and reliability, which is a long-term strategy for enterprises in the energy sector.
To illustrate the company’s long-term consideration and sense of responsibility, here’s a small example: Faced with a cooperation project valued at tens of millions or even hundreds of millions, the company decided to give it up after in-depth evaluation because the risks involved did not meet the safety standards. Neng’an’s choice was not based on the inability to undertake the project but was a decision made by placing safety first after comprehensive assessment. In this way, the company has avoided potential risks for consumers and demonstrated its responsibility for its products and consumers.
Achieving safe operation of products throughout their entire lifecycle is undoubtedly a daunting task, especially with Neng’an proposing a 20-year product warranty. The confidence stems from the company’s years of technical accumulation and pragmatic corporate attitude. With rich experience and practice, Neng’an can be more confident when making commitments to customers. They insist that they will not sacrifice product safety for the sake of rapidly occupying the market.
Neng’an carries products full of energy, which may pose risks if not managed properly. The company considers technological innovation as part of its cost-reduction strategy, achieving systemic innovation in design, business models, structural innovation, and collaboration with upstream and downstream partners to enhance market competitiveness.
Looking back at the initial starting point of Xinneng An, its establishment was based on the foresight of two founding companies regarding the future development of small-power low-speed mobility, the medium and small-sized energy storage market, as well as the high-power product domain. These three niche markets have demonstrated new development trends and potential. For instance, the wired-to-wireless transition in the electric tool industry is widely recognized by the market, which has also driven progress in other related fields within the industry, ensuring that Xinneng An’s initial market predictions remain unaltered and robust.
Mobile energy storage is becoming a brand new development direction in the field of energy, with its value being widely recognized. As the domestic automobile market gradually transitions from fuel vehicles to new energy vehicles, the market share of new energy vehicles has broken through 50%, a change that is bound to have a profound impact on the electricity grid. With the aid of frequency modulation technology, the interconnectedness of the energy storage system with the electricity grid is ensured, promoting the growth of a trillion-scale market. Looking at niche sectors, such as small power and low-speed mobility have become basic needs, while small and medium-sized energy storage businesses closely follow the trend of green energy, which is an important path to sustainable development. The rapid development of these fields is just beginning, and their future potential is boundless.
The competition in the battery market is undoubtedly fierce, so companies need to find partners whose values align with theirs. There are various customer needs in the market; some customers highly value cost, while others prioritize safety and quality. For companies, it is especially crucial to choose the right strategy and build a unique value. It will take time for the industry to develop a healthy ecosystem, but we firmly believe that the ultimate market dominance will rest in the hands of a few strong leading companies, whose market share will continue to concentrate, helping consumers better identify quality brands and cost-effective choices. The distribution of market share varies according to different business lines. For Xinneng An, its goal is to become a leader or a unique enterprise in the industry.
When it comes to technological differentiation, customer choice is the best proof. The choices of many top customers have already shown the differentiated competitiveness provided by Xinneng An. We welcome the addition of new competitors to the market. Full market competition can promote industry progress, encourage Xinneng An to continue innovating, and bring higher quality products and better experiences to customers and the market.
Looking ahead, the business divisions of Xinneng An may usher in a series of technological innovations. For the two-wheeled electric vehicle sector, sodium batteries may become a new trend in the industry, potentially leading to major changes in the market for power batteries for electric two-wheelers. New technologies, from materials to processes, including sodium batteries, should be given great attention. The acceptance level of end-consumers in the market, as well as the widespread application of a technology, is a simple and effective standard to determine its maturity.
For Xinneng An, we have also invested a lot of effort in the development of sodium battery products and will continue to pay close attention and enter the market at an appropriate time. Of course, when sodium battery products truly mature depends on external factors such as the supply chain. If the supply chain does not keep up, it will lead to high costs and difficulty in popularization in the market.
36Kr: In the field of high-power batteries, which dimensions can be continuously broken through? In the short term, what areas might have already encountered a ceiling or, in other words, a bottleneck?
Yuan Qingfeng: Since the launch of the new Jumbo-Power40 series, it has caused a huge response in the industry. Many customers have taken the initiative to communicate with us, including exploring the direction of future new product development, and we have also received a lot of new demands that have indicated the direction of development for New Energy.
