A total investment of 10 billion yuan AVIC lithium battery 'new power lithium-ion battery production line project' settled in Xiamen

With a total investment of 10 billion yuan to build a 20GWh power lithium-ion battery project, AVIC Lithium Battery has taken a big step forward on the road to reshape change. On June 30th, AVIC Lithium Battery signed the 'Investment Cooperation Agreement' with Xiamen Torch High-tech Zone Management Committee and Jinyuan Group, marking the official settlement of AVIC Lithium’s “New Power Lithium-ion Battery Production Line Project” in Xiamen Torch High-tech Zone. The investment is 10 billion yuan. According to the agreement, the total land area of u200bu200bthe project is 850 mu, which will be implemented in two phases. The first phase (A6 project) is scheduled to start in the third quarter of 2019 and put into production in the fourth quarter of 2020, and then the second phase of the project will be started. After the overall project reaches production capacity, it can form an annual output of 20GWh power lithium-ion battery production capacity. According to the announcement of the shareholders of AVIC Lithium Battery *ST Integration, the Management Committee of Xiamen Torch High-tech Zone and Jinyuan Group intend to increase capital in AVIC Lithium Battery step by step, with the capital increase not exceeding 3.5 billion yuan. The specific capital increase period and capital increase price shall be finalized by all parties. The official capital increase agreement shall prevail. AVIC Lithium Battery stated that the signing of the new Xiamen project is an important part of AVIC Lithium’s successful implementation of its strategic plan and smooth promotion of its production layout. In the future, AVIC's planned annual output of lithium battery will exceed 100GWh, and its output scale will be among the top in the industry. It is foreseeable that efficient production layout, comprehensive strategic reshaping and accelerated restructuring at the capital level are adding strength and confidence to AVIC Lithium for the next stage of fierce market competition. Various signs of the 'acceleration' of change indicate that 2019 has become the starting year for AVIC lithium battery to comprehensively deepen reforms and achieve rapid development, and key capabilities such as technology, output, and capital have gradually reached the lead. Looking back on 2018, under the leadership of the new management with the new head Liu Jingyu as the core, AVIC Lithium Battery reshapes the cultural system, fully implements the culture and talent strategy, product and technology leadership strategy, and quality strategy, and rapidly promotes strategic transformation and market transformation , Product transformation, customer transformation. In 2019, the 'acceleration' of AVIC's lithium battery reform is still on the rise. At the market level, AVIC Lithium continues to focus on the three major markets of power lithium-ion batteries, energy storage and military, and timely deploys upstream and downstream industries to continuously increase its market share in the new energy industry. At the product level, based on the platform model requirements of the OEM, the company continuously adjusts and upgrades in five aspects: energy density, lifespan, safety, power, and cost. From product development, supply chain, process control, customer service, etc., the entire process is systematically improved and upgraded, and clear requirements and detailed goals are put forward for different links. At the customer level, focus on serving target customers, cut redundant product lines, and have a deep understanding of target customers. Form strategic partnerships with customers who are most in line with the actual situation and with the highest willingness to improve efficiency and reduce costs as much as possible, so as to truly meet the market and meet the customers. The actual effect of the transformation will gradually appear in 2019. Data from the Advanced Industry Research Institute (GGII) shows that from January to May 2019, AVIC's ranking of lithium-ion battery installed capacity has jumped to sixth place. Supporting customers include Changan Automobile and Beiqi Foton. , Yutong Bus, Dongfeng Motor, Jiangxi Dacheng, Ruiqi Automobile and Jiangling Motors. Gaogong Lithium has learned that AVIC Lithium is currently entering the technology development stage with domestic and foreign automakers such as FAW, SAIC, Great Wall, Volkswagen, and Daimler. It is worth noting that Liu Jingyu stated at the April Global Partner Conference that strategic adjustments have put AVIC lithium batteries into the fast lane of rapid development, and production demand has begun to 'vertical volume.' High-end production 'preparation' The new power lithium-ion battery project planned in Xiamen this time is an important part of AVIC Lithium’s strategic plan and smoothly promoting the production layout. It is also a 'grain and ammunition for AVIC Lithium to prepare for the next stage of competition for power lithium-ion batteries.' '. The driving factors behind AVIC Lithium’s accelerated expansion of power lithium-ion battery production include both the production guarantee consideration of the rise in demand for power lithium-ion batteries after the launch of the next electric vehicle market, as well as the optimization and optimization of power lithium-ion battery technology. The consideration of the new generation battery technology reserve. Liu Jingyu said at the scene that the power lithium-ion battery industry is a national strategic emerging industry with huge market potential. AVIC Lithium Battery is confident in the development of the project in Xiamen and will strive to push the project into operation as soon as possible. It is understood that the new power lithium-ion battery production line project of AVIC Lithium Power Xiamen will build a highly intelligent, green and environmentally-friendly advanced battery and power system industrial base in accordance with international first-class and domestic leading standards. 'AVIC Lithium Battery will further increase Ru0026D investment, continue to carefully build products, and strive to make the company a sustainable global battery manufacturer.' Liu Jingyu emphasized. At present, AVIC Lithium Battery has two industrial bases in Changzhou and Luoyang, with an output of 11GWh. At the same time, it has a professional Ru0026D institution-AVIC Lithium Battery Technology Research Institute, dedicated to the development and application of key technologies and advanced materials for power lithium-ion batteries. The global influential lithium-ion battery technology innovation platform. Gaogong Lithium understands that based on the overall transformation of strategy, market, products and customers, AVIC Lithium has comprehensively sorted out and adjusted its production line planning and manufacturing capabilities to make comprehensive and adequate preparations for the next market and customer needs. GGII analysis pointed out that if power lithium-ion battery companies want to dominate the new energy vehicle market, they must have a comprehensive proactive advantage in terms of output guarantee, cost control, next-generation technology reserves and industrialization.