Chinese Carmakers BYD, FAW Break Ground on USD2.1 Billion EV Battery Plant
Dou Shicong
DATE:  Feb 28 2022
/ SOURCE:  Yicai
Chinese Carmakers BYD, FAW Break Ground on USD2.1 Billion EV Battery Plant Chinese Carmakers BYD, FAW Break Ground on USD2.1 Billion EV Battery Plant

(Yicai Global) Feb. 28 -- Construction of a power battery plant in which automakers BYD and FAW Group have jointly invested CNY13.5 billion (USD2.1 billion) has begun in the capital city of China’s northeastern Jilin province.

The pair held a groundbreaking ceremony in Changchun, where FAW is headquartered, on Feb. 26, Xinhua News Agency reported the same day.

The new factory will cover an area of 800,000 square meters and have a production capacity of 45 gigawatt-hours. Once completed, it will supply batteries to 1 million electric vehicles a year and have an annual output value in excess of CNY20 billion (USD3.2 billion).

The factory will be run by FAW Fudi New Energy Technology, a joint venture set up on Jan. 15 with registered capital of CNY1 billion (USD158.4 million), in which BYD holds 51 percent and FAW the remainder.

Shenzhen-based BYD will strengthen its partnership with FAW to build the production base and boost the local auto industry chain, said Chairman and Chief Executive Wang Chuanfu.

The installed capacity of BYD, a leading maker of new energy vehicles and power batteries, reached 25 GWh last year, ranking second among Chinese companies, according to data from the China Association of Automobile Manufacturers. Contemporary Amperex Technology topped the list with 80.5 GWh.

FAW is China’s second-largest carmaker by sales. It sold 3.5 million vehicles last year, second only to Shanghai-based SAIC Group, which sold 5.5 million units.

FAW has been shifting toward the NEV market in recent years. Its luxury car brand Hongqi has launched various models, including the Hongqi E-QM5, which uses BYD’s battery. Its JV NEV plant with Germany’s Audi began construction work in Changchun on Feb. 18 and is expected to start operations in 2024.

Editor: Futura Costaglione

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Keywords:   FAW Group,BYD,EV Battery