China-based lithium-ion (Li-ion) battery cell and module maker Sunwoda Electronic will have its subsidiary Sunwoda Electric Vehicle Battery set up a factory of Li-ion battery cells, modules, and packs for use in electric vehicles (EVs) in central China on a joint-venture basis with China-based automaker Dongfeng Motor and its affiliate Dongfeng Hongtai Holding, according to industry sources.
Sunwoda Electric Vehicle, Dongfeng Motor, and Dongfeng Hingtai will together invest CNY 12.0 billion (US$1.68 billion) for 51%, 35%, and 14% stakes respectively for the factory, the sources said. With an initial investment of CNY 8.0 billion in the first phase, an annual production capacity of 20GWh of Li-ion battery cells will be set up at the factory, with battery cells to be packaged into battery modules and then EV-use battery packs, the sources noted. An annual production capacity of 10GWh will be set up at the factory in the second phase with a subsequent investment of CNY 4.0 billion, the sources indicated.
Sunwoda 2021 set up a joint venture factory of car-use pouch batteries in northern China with China-based Geely Automobile.
Sunwoda has extended the production of Li-ion battery cells, which are originally used in consumer electronics, to the use of EVs, the sources said. By 2021, Sunwoda has set up additional factories in central, northern, southern, and western China in a bid to expand its annual production capacity for EV-use Li-ion battery cells to a target of over 200GWh, the sources noted.
In order to raise funds for the expansion, Sunwoda plans to spin off its EV-use Li-ion battery business unit for listing. The business unit had attracted a cumulative strategic investment of about CNY 2.0 billion from China-based EV vendors such as NIO and XPeng Motors and China-based automakers including GAC Group and Dongfeng as of February 2022 and is expected to be listed the earliest in 2023.
Sunwoda shipped 4.04GWh of EV-use battery packs to Dongfeng, Geely, GAC, Dogfeng Liuzhou Motor, SAIC Motor, SAIC Maxus Automotive and SAIC-GM-Wuling Automobile in January-August 2022, ranking fifth among China-based EV-use battery makers.
Since main China-based EV vendors and automakers are increasingly unsatisfied with simple battery supply relations, they have sought strategic cooperation with battery makers, and consequently, joint-venture investment to set up battery factories has become a trend, the sources analyzed.
SAIC, Dongfeng, China FAW Group, Changan Automobile, BAIC Group, and GAC, the six largest China-based automakers, have cooperated with Contemporary Amperex Technology (CATL), the largest China-based battery maker, to set up joint-venture battery factories or made stake investment in CATL, the sources said. Besides, China-based electric bus maker Yutong and National Electric Vehicle Sweden, a Sweden-based EV maker acquired by China-based Evergrande New Vehicle Group, have been in strategic cooperation with CATL, the sources noted.
In addition, other China-based battery makers have been in cooperation with automakers. BYD has set up a joint venture battery factory in northeastern China with China FAW and signed for strategic cooperation with Changan Automobile. Envision AESC and Japan-based Nissan Motor will jointly invest US$1.8 billion to set up a battery factory in Japan and another in the UK. Gotion High-Tech and Beijing New Energy Vehicle and Anhui Jianghuai Automobile are in strategic cooperation, while Camel Group and Tangjun Ouling Automobile Manufacturing, OptimumMano Energy and Zhongtung Bus, Chunlan New Energy and FAW Bus and Coach, wholly owned subsidiary of China FAW, are in collaboration.
Li-ion battery packs installed in chassis of EVs
Photo: Digitimes file
