EVE focuses on expansion of cylindrical battery production

1. EVE invests in two projects
2. Layout of EVE to cylindrical battery
3. Upstream and downstream investment of cylindrical batteries

We all know that there are three kinds of battery, including cylindrical battery, prismatic battery and pouch battery. Recently, EVE will use all the raised funds to invest in “passenger vehicle lithium-ion power battery project”, “HBF16GWh passenger vehicle lithium-ion power battery project” and supplement working capital, which are EVE’s main business.

1. EVE invests in two projects

Among them, the “passenger vehicle lithium-ion power battery project” has a total investment of 4.375 billion RMB. After the project is put into production, it will form an annual production capacity of 20GWh of large cylindrical 46 series power storage lithium-ion batteries. The “HBF16GWh Project” aims to build an automated production line for square lithium iron phosphate batteries in Hubei, China. After the project is put into production, it will form an annual production capacity of about 16GWh of square lithium iron phosphate batteries.

EVE also stated that the 46 series of large cylindrical batteries produced in this “passenger vehicle lithium-ion power battery project” is a further expansion and extension of the original 18 series and 21 series of cylindrical batteries. And there are some portable power station for other manufacturers. At present, only a few companies in the world have the 46 series of large cylindrical battery industrialization capability. It is expected that after the completion of this investment project, the scale of EVE’s power storage lithium-ion battery products will be further expanded.

2. Layout of EVE to cylindrical battery

According to the data, in the first half of the year, the installed capacity of power batteries for EVE was 2.45GWh, with a market share of 2.22%. China ranked eighth, with a rapid upward trend.

In terms of customers, in addition to the stable supply of EVE power batteries to Hyundai and Xiaopeng, the company also entered the supply chain of Bosch Automobile and Chengdu Dayun this year. While the market share is rising and orders from high-quality customers are increasing, EVE is actively expanding the production capacity of high-quality batteries to meet the diversified needs of customers.

In 2022, its production capacity layout will accelerate significantly. According to statistics, from January to June, EVE has successively launched power and energy storage battery projects in Jingmen, Hungary, Chengdu and other places, with a total production capacity of about 138GWh and a planned investment of over 38.6 billion RMB.

Based on this calculation, the 27GWh ternary soft package production capacity and the original production capacity of the joint venture with SKI, the total production capacity of EVE power energy storage batteries has exceeded 200GWh. Moreover, the 46 series cylindrical battery has become an important strategic direction of EVE. In terms of technology development, production capacity deployment and customer development, it has been at the forefront of leading battery companies.

In March of this year, EVE stated that cylindrical batteries and laminated iron-lithium batteries will be its key product directions for layout and development in the field of power batteries. In terms of technical layout, the company is one of the first manufacturers in China to master the technology of ternary cylindrical battery, and has realized the technology including high specific energy material system technology, all-pole lug connection technology, large cylindrical platform process technology, and thermal spread safety control technology.

A number of breakthroughs in research and development of new technologies have completed the layout of the core intellectual property rights of cylindrical batteries in terms of batteries and systems.Through core technologies such as highly integrated lightweight technology, high-standard reliability verification, and all-weather thermal management, EVE has created a highly competitive battery system.

In terms of market development, EVE said that cylindrical battery products cover the requirements of the automotive market such as BEV and PHEV, and have been recognized by first-class car companies in China and abroad. With the rapid release of subsequent production capacity, cylindrical batteries will be sold in the mid-to-high-end passenger car market, and cylindrical batteries are expected to become the second growth curve of the EVE market, helping the production of its installed capacity.

3. Upstream and downstream investment of cylindrical batteries

According to the data, the average spot price of battery-grade lithium carbonate in the first half of 2022 is 453,000 RMB/ton, a year-on-year increase of 454%. The high price of lithium carbonate has made the lithium salt sector the focus of attention of major battery factories. At present, a number of power batteries, including CATL, BYD, CALB, EVE, Gotion Hi-Tech, Farasis, and SVOLT, have accelerated the construction of upstream layouts in order to ensure the release of production capacity, maintain stable material supply and reduce costs.

EVE once stated that the company has invested more than 10 billion RMB in the supply chain, and has deployed on the material side through strategic shareholding, joint venture construction, and acquisitions. At present, the company’s investment in the upstream of new energy lithium batteries covers more than a dozen companies, most of which are cooperation in projects such as lithium mines and lithium salts.

EVE established a joint venture company, Jinhai Lithium Industry, and established lithium salt joint ventures with SVOLT, Chuanneng, Zijin, and Ruifu, and made extensive arrangements for lithium resources upstream of the industrial chain. And it is one of top 10 high nickel production manufacturers in China. At the same time, the company continued to promote in-depth strategic cooperation with upstream companies, and actively locked positive electrodes through the establishment of joint ventures with upstream companies including Dynanonic, BTR, Huayou Cobalt, Semcorp, Zhongke Electric, Capchem, etc. Materials, anode materials, separators, electrolytes and other major lithium battery raw materials will be supplied in the future.

In addition, like other head battery factories, EVE has gradually improved its integrated layout. In addition to upstream material companies, the company is also actively expanding the boundaries of the downstream application market. At present, EVE has invested and cooperated with EVE Tedian, Alpha ESS, Guangzhou Development and Linyang EVE in the downstream, and carried out business cooperation in the fields of charging pile and energy storage market.

Among them, in the deployment of the energy storage market, EVE has strategically taken the lead. In terms of communication energy storage, the company has carried out business cooperation with telecommunications operators such as China Mobile and China Tower, and leading enterprises in communication facilities; it has become the designated supplier of grid-side supporting services such as Powin Energy, Henan Power Grid, and Jiangsu Power Grid, and provides energy storage at home. The industrial and commercial energy storage field has accumulated a number of Chinese and world-renowned brand customers.

With the transmission of cost pressure, the release of production capacity, and the increase in the proportion of lithium carbonate self-supply, the performance of EVE power batteries is expected to usher in a new turning point.