BYD invests another tens of billions to build power lithium batteries!

On May 29th, news from the WeChat public account 'Changchun Zhengshier' under the Changchun Daily News revealed that 'BYD battery projects with an investment of nearly 10 billion yuan will soon be located on both sides of the river.' The news comes from 'Changchun International Automobile' The groundbreaking ceremony of the first phase of the comprehensive treatment project of the Chengxinkai River Basin. At the same time, Changchun political affairs announced the Audi FAW New Energy Project with an investment of 30 billion yuan, the Hongqi Silk Road sports car project with an investment of 10 billion yuan, and the Jiuda Hongqi Academy project with an investment of 8.9 billion yuan. Lithium Grid noted that as early as January 12, 2021, the 'Notice on Road Motor Vehicle Manufacturing Companies and Products' (batch 340) announced by the Ministry of Industry and Information Technology showed that the Hongqi brand new B-class pure electric car 'E-QM5' model, It is equipped with BYD blade batteries. Now, BYD’s battery project is co-located in the same area with Hongqi Silk Road sports car project and Audi FAW’s new energy project, or due to the consideration of “nearly supporting facilities”. In addition, the current lithium-ion battery manufacturing, from a geographical point of view, is mostly concentrated in South China and East China. In North China, especially the three eastern provinces, there are not many power lithium battery production bases. BYD's heavy investment in the Xinkai River Basin may be of strategic significance. BYD's battery layout is one of the first companies to enter the battery industry, and BYD has a relatively complete layout in terms of battery production bases. At present, BYD has 8 production bases in Shenzhen Baolong, Shenzhen Kengzi, Xi'an Hi-tech, Qinghai Xining, Guizhou Guiyang, Chongqing Bishan, Changsha Ningxiang, and Anhui Bengbu. BYD has also established a joint venture with Changan Automobile to produce 10GWh, with a total planned output of 175GWh. In addition, media reports from March 17 said that BYD's Fordy Battery announced an internal recruitment information. Recruitment information shows that the preparation office (European group) for the new plant of Fordi Battery is preparing to build the first overseas battery plant, which is mainly responsible for the production, packaging, storage and transportation of lithium-ion power lithium batteries; recruitment positions include senior project manager, director Process engineer, senior quality engineer, senior equipment engineer, etc., work in Shenzhen/Europe. This shows that BYD is currently preparing to build its first overseas battery factory and its battery business has expanded overseas (Europe). BYD’s market position is relatively stable, and BYD’s power lithium battery ranks No. 2 and No. 4 in the world. In a short period of time, the number one in China will be the Ningde era. After all, the Ningde era has captured about 50% of the domestic market share. Variables may occur in the international market, just as LG Chem can surpass Panasonic, BYD is fully equipped to compete. First of all, BYD's installed capacity is rapidly increasing. The latest data shows that the cumulative installed capacity of BYD's new energy vehicle power lithium batteries and energy storage batteries from January to April 2021 is about 7.428GWh. By comparison, BYD's full year of 2020, the data is 12.598GWh. In other words, in only 4 months, BYD's installed capacity has reached 59% of last year's. Secondly, BYD batteries are accelerating external supply. On April 7th, at BYD’s press conference, BYD Chairman and President Wang Chuanfu revealed that its power lithium batteries for the Hongqi brand have been shipped. Except for the red flag, the other words are replaced by the word 'Secret'. The market has speculated that Ford or BYD's 'No. 1 customer'Almost every car brand you can think of is negotiating cooperation with Verdi Battery.' This sentence has appeared many times on different occasions, and it is not groundless. Netpass Verdi Battery has also won the designation of vehicles from Volkswagen, PSA, Daimler, Dongfeng Honda, Changan Automobile, BAIC Kunbao and other auto companies. In conclusion, BYD batteries are accelerating external supply and are also preparing to go on the market. As always, BYD is very low-key. If it were not for the information disclosed by 'Changchun Political AffairsIn addition, BYD may have more big moves yet to surface!