On June 26, EVE released a report that addresses inquiries from RMS Global about Huizhou EVE’s application for listing on the second-board market and issuance of convertible corporate bonds to non-specific investors. This report provided a detailed explanation and justification on how EVE will spend the CNY 7 billion that it intends to raise. Specifically, the CNY 7 billion will be used to develop two manufacturing projects. The first project is set to have a production capacity of 23GWh per year for cylindrical LFP batteries deployed in NEVs and energy storage systems. The second project is set to have a production capacity of 21GWh for large-size cylindrical batteries deployed in electric passenger vehicles.
The 23GWh LFP battery project will mainly meet the demand from market segments including electric passenger vehicles and residential energy storage systems. As of now, EVE has secured an indicative demand totaling around 88GWh for cylindrical LFP batteries from its customers over the next five years. This amount is enough to consume EVE’s current production capacity for this kind of product.
The 21GWh large-size cylindrical battery project will mainly meet the demand from electric passenger vehicles. As of now, EVE has secured an indicative demand totaling around 392GWh for series-46 cylindrical NEV power batteries from its customers over the next years. This amount, too, is enough to consume EVE’s current production capacity for this kind of product.
EVE’s report also provided a general plan on how the company will release the production capacity of the two aforementioned projects and other projects that are being developed. This June, EVE announced, in succession, that it has formed important supply partnerships with two international clients. First, EVE’s subsidiary Hubei EVE signed a procurement agreement with Powin on June 14. Under this agreement, EVE will produce and deliver 10GWh of prismatic LFP batteries to Powin, which has been a leading US provider of battery-based integrated energy storage solutions. The total capacity of energy storage systems that Powin is installing or has installed worldwide now comes to more than 6,000MWh. The company is also planning to install another 11,000MWh in the future. GCL SI, CATL, and REPT are some of Powin’s business partners at this moment.
Then, on June 15, EVE notified that it signed a master purchase agreement with American Battery Solutions (ABS). Under this agreement, EVE will produce and deliver 13.389GWh of prismatic LFP batteries to ABS, which has been a US provider of batteries for electric vehicles and energy storage systems deployed in commercial and industrial settings.
Regarding capacity expansions, EVE released a notice on the acquisition of land for a cylindrical battery project in Malaysia on June 8. Regarding the cost of the project, the cost of land has not exceeded CNY 254 million, and the cost of the entire project comes to USD 422.3 million. The announcement on June 8 was a formal confirmation on the development of the project in Malaysia.
Regarding the development of another battery project in Hungary, EVE disclosed on May 9 that its wholly-owned subsidiary EVE Power Hungary had inked the land purchase agreement. This project is located in an industrial park within the northwestern part of the Hungarian city Debrecen. EVE said it will be manufacturing the cylindrical batteries for BMW’s electric vehicles. The total investment in the project is estimated to reach EUR 10 billion.
In China, EVE has established R&D centers in Huizhou (Guangdong Province), Jingmen (Hubei Province), and Shanghai (Jiangsu Province). Furthermore, the company manufacturing bases in the following Chinese cities: Huizhou, Jingmen, Ningbo (Zhejiang Province), Qidong (Jiangsu Province), Yancheng (Jiangsu Province), Chengdu (Sichuan Province), Jianyang (Sichuan Province), Yuxi (Yunnan Province), Qujing (Yunnan Province), and Shenyang (Liaoning Province). Outside China, EVE are setting up 12 manufacturing bases in countries including Hungary and Malaysia. All in all, EVE has plans for 54 factories that together entail an investment of more than CNY 70 million and have a production capacity of more than 400GWh per year.
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.