Ningde Times invested 29 billion yuan to build power battery projects in three places

On the evening of February 2, Ningde Times announced that the company had invested 29 billion yuan to invest and build power battery projects in Zhaoqing, Guangdong, Yibin, Sichuan, and Ningde, Fujian. At the end of 2020, CATL has announced that it will invest 39 billion yuan to invest in the construction of lithium battery production projects or expand production capacity in Fuding, Fujian, Yibin, Sichuan, and Liyang, Jiangsu. Ningde Times announced that it plans to invest in the construction of a power and energy storage battery production base in Zhaoqing City, Guangdong Province, with a total investment of no more than 12 billion yuan; in the Lingang Economic and Technological Development Zone of Yibin City, Sichuan Province, Ningde Times announced that it plans to invest in the construction of power batteries in the Lingang Economic and Technological Development Zone of Yibin City, Sichuan Province The fifth and sixth phases of the Yibin manufacturing base project, with a total investment of no more than 12 billion yuan; the holding subsidiary, Times FAW Power Battery Co., Ltd., intends to invest in the construction of the expansion project of Times FAW power battery production line in Xiapu County, Ningde City, Fujian Province, with a total investment of not more than 50%. 100 million yuan. According to the official website of CATL, the company has five major production bases, namely, Fujian Ningde, Qinghai Xining, Jiangsu Liyang, Sichuan Yibin, and Erfurt, Germany. After the implementation of the latest investment and construction plan, CATL's production base will be added to Zhaoqing, Guangdong. From the perspective of investment area, CATL is increasing its investment in Sichuan. In addition to the two recent investments in Sichuan, as early as the end of 2019, the power battery project of Sichuan Times New Energy Technology Co., Ltd., a wholly-owned subsidiary of CATL, officially started construction in Yibin City, with a total investment of 10 billion yuan. In the opinion of an industry insider, CATL is planning to gradually build a complete power battery and upstream and downstream core industrial chain in the western region. Ningde Times stated that Sichuan is an important base for the western automobile industry, with a broad consumer market, a solid industrial foundation and strong technological innovation capabilities in the automotive field. The company's investment and expansion this time is in line with the company's strategic development plan, and will further improve the company's production capacity layout, meet the company's future business development and market expansion needs, and is of great significance to promote the company's long-term stable development. Companies in the new energy automobile industry chain have successively followed the Ningde era. As the first brother of the power battery, their large-scale investment has the role of a vane, and other companies in the new energy automobile industry chain have successively increased their investment. BYD announced on the evening of February 2 that the company intends to increase the capital of its wholly-owned subsidiary BYD Auto Industry Co., Ltd. by US$850 million or its equivalent in RMB, and increase the capital of its holding subsidiary BYD Auto Co., Ltd. by 3 billion yuan. The wholly-owned subsidiary Shenzhen BYD Supply Chain Management Co., Ltd. increased its capital by 3 billion yuan, and the increased capital will be fully included in the registered capital of the subsidiary. BYD stated that the company’s increase in capital for the above-mentioned subsidiaries is based on the company’s normal production and operation needs, which is conducive to the better development of the subsidiary’s business, further enhancement of its product research and development capabilities and operational capabilities, and is conducive to improving the company’s core competitiveness. The company's long-term planning and development strategy. Recently, Leading Intelligence, Nebulas, Han's Laser and other companies have successively announced that they have obtained large orders from Ningde Times or its subsidiaries. On the evening of December 31, 2020, Putailai announced that it plans to invest 500 million yuan to establish Sichuan Zichen, which will mainly produce anode materials; in November 2020, Putailai announced that it will invest 520 million yuan to establish a diaphragm/coating related subsidiary. Sichuan Zhuoqin, Sichuan Jidun. In the near future, Shanghai Enjie, a holding subsidiary of Enjie, plans to invest 5.8 billion yuan to build 16 lithium-ion battery microporous membrane production lines and 39 coating lines in Chongqing. In December 2020, Changying Precision announced that it plans to invest 2 billion yuan to build three automated production line projects for power battery structural parts, one of which is located in Yibin, Sichuan. It can be seen that power battery companies are starting a new round of capacity expansion to prepare for the TWh era. Ningde Times Chairman Zeng Yuqun recently stated that in the next five years, the lithium industry market will usher in a blowout period and quickly enter the TWh (terawatt hour, 1 terawatt hour equals 1 billion kilowatt-hours of electricity) era. High-efficiency, high-quality delivery is an important core competitiveness. According to industry insiders, in the context of the promotion of policies in many countries and the gradual increase in market acceptance of new energy vehicles, both supply and demand factors have jointly promoted this round of electrification. In China, at the beginning of 2020, the market expects the sales of new energy vehicles to be around 1 million, but the actual sales volume for the whole year is 1.367 million, which is expected to further increase to 1.8 million in 2021.