Major Chinese battery supplier EVE announced on January 31 that its subsidiary EVE Power and the administrative committee of Jingmen Hi-Tech Industrial Park signed an agreement for setting up new battery production lines. Under the agreement, EVE will invest around RMB 10.8 billion to set up 60GWh per year of production capacity for Li-ion batteries and other supporting facilities. Of the RMB 10.8 billion, fix assets will account for around RBM 8 billion. JIngmen is a city in China’s Hubei Province.
EVE stated that the new production lines in Jingmen will manufacture Li-ion batteries used in electric vehicles and energy storage systems. The area of the production site is planned to span around 1,000 mu. Located in the Jingmen Hi-Tech Industrial Park, four roads border around the planned site: Transportation Road to the east, Mingli Road to the south, Jianqiu Road to the west, Longwang Road to the north.
EVE also said that this investment project will synergize both parties’ resources and competitive advantages so as to significantly expand the local production capacity for EV power batteries. At the same time, EVE will be able to further optimize its business operations so as to provide its clients with more products and solutions. By continuously improving its overall competitiveness, EVE will not only grow its presence in the market for Li-ion EV power batteries but also exert a greater influence over the wider industry for new energy solutions.
Since 2022, EVE has been rapidly building up its production capacity. In March 2022, the company revealed that it will be investing in two battery production lines and supporting facilities in the Jingmen Hi-Tech Industrial Park. One line will have a production capacity of 20GWh per year for prismatic LFP battery cells, and the other line will have a production capacity of 48GWh per year for batteries purposed for electric mobility and energy storage. The investment in the fixed assets of the two lines and supporting facilities is estimated to reach around RMB 12.6 billion. Hence, the agreement that was signed this January 31 represents a further expansion in EVE’s operation in Jingmen.
Also, in April 2022, EVE announced that it will be investing RMB 20 billion to set up a battery production base Chengdu, the capital of China’s Sichuan Province. Located in the city’s Longquanyi District, the base will have a production capacity of 50GWh per year for Li-ion batteries equipped in electric vehicles and energy storage systems. Then, in May and June of the same year, EVE successively announced that it will be landing a battery manufacturing projects in the Yuxi Hi-Tech Industrial Development Zone and another one in the Qujing Economic Development Area. Each of these two projects will entail an investment of around RMB 3 billion and have a production capacity of 10GWh per year.
Later, in September 2022, EVE revealed that it had inked an investment agreement with the government of Shenyang and the administrative committee of the Shenyang Economic and Technological Development Zone. Under the agreement, EVE will invest RMB 10 billion to set up 40GWh per year of production capacity for EV power batteries. Shenyang is the capital of China’s Liaoning Province.
Moving to 2023, EVE has not slowed down the pace of its capacity expansion. On January 18 this year, the company released a plan to build a manufacturing base in Jianyang, a county-level city under the administration of Chengdu. With a planned production capacity of 20GWh per year, the base will manufacture batteries for electric vehicles and energy storage systems. The investment agreement had been signed by the company and the government of Jianyang by the time of the announcement. The total investment in this project is estimated around RMB 10 billion, and EVE has set up a wholly-owned subsidiary to build and operate the base.
Also, on the same day, EVE notified that it signed a revised investment agreement with the government of Qujing and the administration committee of the Qujing Economic Development Area. Specifically, a project involving 23GWh per year of production capacity for cylindrical LFP battery cells has been adjusted. Its investment is now estimated around RMB 5.5 billion, of which fixed assets will account for around RMB 4.5 billion
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.