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EVE Formally Invests in Cylindrical Battery Project in Hungary and Acquires Land for New Project in Malaysia

published: 2023-06-13 9:30

Chinese suppliers for Li-ion batteries are actively internationalize their operations and form strategic partnerships with foreign companies involved in the upstream and downstream sections of the industry chain. On June 8, EVE announced two new developments in its ongoing overseas expansion.

First, the board of EVE issued a notice approving a proposal on building a plant in Hungary for manufacturing cylindrical batteries used in electric passenger vehicles. EVE Power Hungary Kft., a wholly-owned subsidiary, will invest no more than RMB 9.97 billion in setting up the plant. The EVE Power Hungary will be spending its own capital as well as raise the money from other sources for funding this project. Located in Debrecen, the plant would provide a large amount of new production capacity for a new-type of large-sized cylindrical Li-ion battery cells.

EVE said the plant in Debrecen will contribute to its overseas expansion and internationalization of its business operations. Furthermore, the plant will help the company to scale up and optimize production so that it can capture more orders from clients working in the fast-growing field of NEVs. All in all, this investment will enhance the company’s position in the market for NEV power batteries.

Placing a plant in Hungary will allow EVE to promptly respond to the demand from the local vehicle manufacturing plants. Besides this, the plant will radiate EVE’s influence across the whole Europe, providing opportunities for EVE to secure contracts from the major vehicle manufacturers based in the region.

Regarding the other development, EVE also disclosed that progress has been made in setting up a battery production plant in Malaysia. A sub-subsidiary EVE Energy Malaysia Sdn. Bhd. has signed a land purchase agreement with Pemaju Kelang Lama Sdn. Bhd. and its holding subsidiary G&C Utama Sdn. Bhd. In October 2022, the board of EVE approved a proposal on investing in a project for manufacturing cylindrical batteries in Malaysia. To implement this project, EVE would spend its own capital and self-raised funds totaling no more than US$422.3 million (around RMB 3 billion).

EVE said the project in Malaysia leverages the company’s own technological advantages and the country’s advantages in resources, thereby significantly scaling up the production of cylindrical batteries. Moreover, the project will meet the demand from manufacturers for electric scooters and power tools within Malaysia and other parts of the Southeast Asia. Hence, EVE will be able to further reinforce its strong position in the fields of batteries used in electric light vehicles and power tools.

EVE is one of the few battery suppliers that possesses core technologies for both batteries used in consumer electronics and batteries used in NEVs. Furthermore, it is the first Chinese battery supplier that has developed offerings related to 46-series cylindrical batteries and other large-sized ternary batteries. In China, EVE now plans to add new production capacity in Jingmen (Hubei Province), Chengdu (Sichuan Province), and Shenyang (Liaoning Province). Additionally, it has secured confirmation from tier-1 carmakers for the adoption of its batteries. These carmakers include Dayun Automobile and BMW.

Regarding financial performance, EVE’s revenue for 1Q23 came to RMB 11.186 billion, up 66.11% YoY. The company maintains an optimal balance among its three main businesses: consumer batteries, NEV batteries, and energy storage batteries. At the same time, it continues to capture market share and improve its position within the industry in order to drive rapid revenue growth.

This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.

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