(Yicai Global) Nov. 8 -- China's auto parts industry giant Wanxiang Group will proceed with the development of two plants for the production of lithium batteries and electric vehicles with a combined investment of CNY71.3 billion (USD10.2 billion).
Wanxiang has completed environmental impact assessments for the CNY68.6 billion battery factory and CNY2.7 billion new energy vehicle plants, both located in its home city of Hangzhou in eastern Zhejiang province, it said in a statement.
Covering an area of 403 acres, the battery facility includes a research and development and international innovation center, a pilot production base and new energy materials laboratory cluster, as well as an international talent service center, logistics center and 17 standardized battery production plants. Upon completion, it will produce 80 gigawatt-hours-worth of lithium batteries per year.
The group is expected to invest CNY200 billion (USD28.6 billion) in total to complete the construction of the 8.4 square-kilometer Wanxiang Innovation Energy Fusion City in Hangzhou over the next five to seven years, according to an announcement released at the second Global Blockchain Summit earlier this year. The firm aims to build an intelligent ecological city that can accommodate 90,000 people, with the aim of becoming an international, high-tech clean energy company.
Earlier reports show the group started construction of the Fushion City project as early as 2015. The company also aims to develop blockchain-related application scenarios such as a distributed energy source system, shared economy registration tools and vehicle ID equipment at the site.
Founded by Ru Guanqiu in 1969 as a small-scale repair plant for tractors, the company has grown at an average annual rate of 25.9 percent to become a modern multinational enterprise with more than CNY100 billion in revenues and CNY10 billion in profits.
Editor: William Clegg