Tech Giants: Starting from Bankrupt Companies

228: Chapter 228 The ”Frenzy of Buying” in the Cooperation ZoneThe press conference had just ended when the business cooperation zone was packed to the point of being impassable.

Security guards pulled up three cordon lines, but they still couldn’t hold back the crowd.

Today, the cooperation zone was divided into four areas:

Area A: Battery Procurement Negotiations

Area B: Electric Drive System Procurement

Area C: Technology Licensing Negotiations

Area D: Strategic Partnership Signing

Area A was the first to be packed to capacity.

The three giants of the new domestic forces rushed straight to the front.

Nio’s Li Bin: ”CEO Gu! We want to lock in 100,000 sets of semi-solid-state batteries! We’ll prepay 30%! No, 50%!”

Xpeng’s He Xiaopeng: ”We’ll purchase the entire electric drive system series! You set the price!”

Li Auto’s Li Xiang: ”We are launching pure electric models next year and need the full three-electric system solution! We can sign a five-year exclusivity deal!”

The traditional giants were not to be outdone.

The BMW procurement director squeezed in: ”We are willing to swap capacity from our European factories to build a joint-venture battery plant! We provide the land and capital, you provide the technology! Building a factory in Germany allows for tax-free status within the European Union, and we can also apply for Germany’s new energy subsidies.”

The Mercedes-Benz representative said: ”Can you license the 800V platform technology? We can open up our fuel vehicle patent pool in exchange! We can jointly build a car factory and establish a joint-venture brand. Xinghuo provides the three-electric system and intelligent driving system, while we provide vehicle design and production. The new cars will definitely sell well in the European Union.”

The international giants were even more direct.

The Tesla representative found Gu Yanting: ”Musk invites you to visit our Texas factory to discuss deep cooperation. We can share our supercharging network. Regarding the three-electric system and intelligent driving system, we want to purchase your semi-solid-state batteries and electric motor drive systems.”

The Toyota representative bowed: ”We are willing to trade hydrogen fuel technology for semi-solid-state battery licensing. Toyota has a complete hydrogen energy patent pool. We can also open up Toyota’s fuel vehicle patent pool and global channels to help Xinghuo open up the global automotive market.”

Gu Yanting was surrounded, and his assistants were desperately trying to maintain order.

”Everyone, please line up! Please register! We will negotiate in order!”

But no one listened.

This was a life-or-death moment—if they didn’t get the Xinghuo batteries, they might be eliminated from the market next year.

In Area B, the battery giants were gathered together, and the atmosphere was oppressive.

CATL’s Zeng Yuqun, 56, the big brother of the Chinese battery industry, was currently like a student waiting for judgment.

He finally found an opportunity to meet with Gu Yanting privately.

In the temporary meeting room, there were only the two of them.

”CEO Gu, congratulations.” Zeng Yuqun smiled bitterly, ”Your technology... is shocking.”

”CEO Zeng, you are too kind,” Gu Yanting responded politely.

”I won’t beat around the bush,” Zeng Yuqun said directly. ”CATL has three production lines that can immediately switch to producing Xinghuo batteries. We will be responsible for production, and you will be responsible for technology and quality control. The OEM fees... are negotiable.”

Gu Yanting was silent.

Zeng Yuqun continued: ”I know you want to do it yourself. But the Chinese battery industry cannot have Xinghuo as the only dominant player. If all production capacity is concentrated in your hands, and if... I mean if, something goes wrong, the entire industry will be paralyzed.”

He said sincerely, ”Let us be your ’backup.’ You eat the meat, we drink the soup. Let’s make the cake bigger together to counter the Japanese and Korean enterprises.”

Gu Yanting looked at him; there was helplessness in the eyes of this senior, but also a sense of responsibility.

”CEO Zeng,” Gu Yanting said slowly, ”Xinghuo can license the technology, but there are a few conditions.”

”Please go ahead.”

”First, the authorized factories must adopt Xinghuo’s production standards and quality management systems, and we will station engineers there. Second, the products must bear the ’Xinghuo Technology Licensed’ label. Third, prices must be executed according to our guide price; there can be no price wars.”

”Agreed,” Zeng Yuqun nodded. ”What else?”

”Fourth, CATL must open up part of its supply chain to us, especially lithium mining resources.”

Zeng Yuqun hesitated for a moment: ”Okay. But we need to sign a long-term agreement.”

”Good.” Gu Yanting reached out his hand, ”Happy to cooperate.”

The two hands clasped together.

A battery alliance for a new era was born.

Outside the door, representatives from Panasonic and LG were still waiting anxiously.

They knew that Chinese enterprises had started to band together, and there wasn’t much time left for foreign enterprises.

At 1:00 PM, the Area C technology licensing negotiations began.

Gu Yanting announced the licensing model:

Grade A Licensing (Most Core): Semi-solid-state battery technology

Licensing fee: 10 billion rmb + 10% sales commission

Quota: Limited to three companies

Includes: Complete technology licensing, engineer training, and production equipment solutions

Grade B Licensing: Divine Travel 3rd generation ternary lithium battery technology

Licensing fee: 5 billion + 5% sales commission

Quota: Five companies

Grade C Licensing: Lithium iron phosphate / Sodium-ion battery technology

Licensing fee: 2 billion + 2% sales commission

Quota: Unlimited, but qualifications must be vetted

All licensing periods are only 3 years; after 3 years, the contract must be renewed.

Electric drive system: Only selling products, not licensing technology

Even at such astronomical prices, more than thirty companies signed up.

”10 billion licensing fee...” Volkswagen Group CEO Diess frowned, ”This is equivalent to our annual R&D budget.”

But his assistant reminded him: ”BOSS, if we don’t buy it, our electric vehicles might not sell next year. If Tesla gets the license, they will lead in every aspect.”

Diess gritted his teeth: ”Buy it! But we want the exclusive license for Europe.”

”Xinghuo says no, at most they will give priority for the European region.”

”Then take the priority!”

The first to sign was BMW.

Zipse signed in person, with a licensing fee of 12 billion, securing the Grade A license for semi-solid-state batteries, including priority for the European region.

During the signing, a reporter asked: ”Mr. Zipse, is the 12 billion licensing fee worth it?”

Zipse replied: ”Without Xinghuo batteries, BMW’s electric vehicle strategy might be delayed by five years. In five years, the market would be carved up by Tesla and Chinese enterprises. Buying five years of time for 12 billion is worth it.”

This sentence became the headline the next day.

At 2:00 PM, the preliminary statistics were released.

The CFO reported to Gu Yanting with shaking hands:

”Battery procurement intent amount: 250 billion rmb deposit, approximately 300GWh, capable of meeting the needs of 5 million electric vehicles. The remaining balance is 250 billion, to be settled after order delivery is completed.”

”Electric drive system orders: 3 million sets of electric drive motor systems, with an average price of 40,000 per set, totaling 150 billion.”

”Technology licensing prepayments: 43 billion has been received. The remaining balance is 43 billion.”

”Total: 736 billion.”

Gu Yanting took a deep breath.

In one day, 736 billion in intended orders.

This is not counting the subsequent licensing sales commissions.

”Notify all production lines; production capacity planning will be increased by 300%. The factories will start a new round of recruitment and operate on three shifts. Three new production bases must complete final equipment installation within 2 months, and mass production must start on July 1st so that our annual capacity can reach 500GWh,” he said. ”In addition, start the construction of a new battery factory. The location... will be in Huizhou, adjacent to the Daya Bay chip base.”

”But the funds...”

”Use the technology licensing prepayments,” Gu Yanting said. ”40 billion is enough to build another 2 world-class battery factories, increasing annual capacity by another 200GWh.”

Currently, Spark Power has 5 world-class battery factories, each with an annual capacity of 100GWh—2 in Guancheng and 3 in Huizhou nearing completion. If 2 more are built, by 2019, Spark Power’s annual battery capacity will reach 700GWh, which can meet the needs of 12 million new energy vehicles.

He walked to the window, watching the still-crowded people in the cooperation zone.

Those automotive tycoons, battery giants, and government representatives were still waiting in line.

They held checks in their hands, their eyes filled with longing.

Gu Yanting remembered what Su Chen said to him two years ago when he first joined Xinghuo:

”Engineer Gu, our goal is not to be the best battery company in China, but to be the promoter of the world energy revolution. We want electric vehicles to completely replace fuel vehicles and bring clean energy into every household.”

At that time, he thought it was a dream.

Today, the dream is becoming reality.

His phone rang; it was Su Chen.

”Engineer Gu, thank you for your hard work.”

”CEO Su, have you seen the data?”

”I have. 736 billion, an astronomical figure, also proves our success.” Su Chen paused, ”But I want to remind you: the real war has just begun. America, Europe, Japan, and South Korea will not sit idly by and watch us monopolize. Next, there will be sanctions, suppression, and conspiracies.”

”Then we...”

”Accelerate,” Su Chen said. ”Accelerate factory construction, accelerate mass production, accelerate technology iteration. Before they react, make it a done deal. When half of the world’s electric vehicles are using Xinghuo batteries, the sanctions will lose their meaning.”

”Understood.”

”Also,” Su Chen said at the end, ”The shooting test was spectacular. But next time... stay safe.”

Gu Yanting smiled: ”Don’t worry, I’ve tested it a hundred times.”

Hanging up the phone, he looked out the window.

As the sun set, the sky over Shenzhen was dyed gold. Unknowingly, it was already 5:00 PM. The business talks had lasted for exactly 4 hours. Professional teams would follow up on the specific details, and they would be working overtime tonight to organize the specific cooperation content.