Tsingshan Holdings Group has announced via its official WeChat account that its subsidiary REPT BATTERO Energy (REPT) has built up 32.6GWh per year of production capacity for batteries. REPT is currently adding new production capacity at home and abroad. The company is simultaneously setting up the following manufacturing projects in China: Phase 3 of Wenzhou Base, Foshan Base, Jiashan Base, Liuzhou Base, and Hainan Base. As for overseas manufacturing projects, the company plans to build bases in Indonesia and Europe in the future. The goal is to attain a total of 150GWh per year for battery production capacity based a “zero-carbon” process by 2025. The exact details on the development of a battery manufacturing process that is, on the whole, free of carbon emissions have yet to be fully disclosed.
REPT was established in 2017 and is one of Tsingshan’s subsidiaries that are involved in the field of new energy technologies. REPT specializes in the development, production, and sales of Li-ion batteries that are used in electric cars and energy storage systems. As for Tsingshan, it is one of the world’s major producer of nickel and stainless steel. It also grabbed the media’s attention recently for its unsuccessful attempt to short the nickel market.
REPT’s offerings for automotive power batteries include LFP and ternary products. The company has developed automotive power batteries for a wide range of vehicle types, including passenger vehicles, commercial vehicles, and vehicles that serve other specific functions. Besides having a diverse product portfolio, the company’s client base comprises both established car manufacturers and startups that focus on electric cars.
On June 21 this year, REPT commences construction on a new manufacturing base in Hainan. The base will be built over two phases, with each adding a production capacity of 15GWh per year for batteries used in electric cars and energy storage systems. This latest manufacturing project is scheduled for completion in 2024. With a total production capacity of 30GWh per year, the base will be the largest Li-ion battery production site in the region.
Turning to energy storage batteries, REPT has developed products suitable for residential, commercial, and industrial buildings. REPT’s clients that procure energy storage batteries are mainly system integrators, energy storage equipment providers, inverter manufacturers, and EPC firms.
One of REPT’s distinct competitive advantages is its parent company’s resources that include raw materials. With the support from Tsingshan, REPT has pursued vertical integration. Currently, REPT has established a foothold in the key sections of the Li-ion battery industry chain, such as cathode materials, anode materials, separator films, and electrolytes.
On December 14 this year, REPT formally filed an application to be listed on the main board of the Hong Kong Stock Exchange. Its sponsors include Morgan Stanley Bank Asia and CLSA.
According to its own prospectus, REPT’s revenue figures for the first half-year periods of 2019, 2020, 2021, and 2022 were RMB 233 million, RMB 907 million, RMB 2.109 billion, and RMB 4.017 billion respectively. Its losses for the same periods were RMB 112 million, RMB 53.279 million, RMB 804 million, and RMB 705 million respectively. Together, the total loss came to RMB 1.675 billion.
Regarding the distribution of revenue by product category, automotive power batteries accounted for 35.5% (RMB 82.716 million) for the first half of 2019, 74.2% (RMB 673 million) for the first half of 2020, 46.5% (RMB 982 million) for the first half of 2021, and 41.4% (RMB 1.663 billion) for the first half of 2022. Energy storage batteries accounted for 59.4% (RMB 139 million) for the first half of 2019, 20.1% (RMB 182 million) for the first half of 2020, 40.7% (RMB 859 million) for the first half of 2021, and 46.8% (RMB 1.881 billion) for the first half of 2022.
Regarding the upcoming IPO at the Hong Kong Stock Exchange, REPT intends to use the proceeds mainly to fund its manufacturing projects, especially the bases located in Wenzhou, Liuzhou, and Jiashan. Besides adding new production capacity, REPT will also use a portion of the capital raised from the IPO to support the development of advanced technologies related to Li-ion battery design, battery materials, and manufacturing processes. This will ensure that REPT is leading in the battery industry with respect to technologies. Lastly, some of the proceeds will be used to supplement working capital, pay off bank loans, and fund typical operational expenses.
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.