EV battery maker SVOLT Energy Technology announced on July 30 that it had obtained Round B financing worth 10.28 billion yuan ($1.5 billion), led by BOCGI, Country Garden Venture Capital, SCGC, CCB Investment, IDG, SANY and Xiaomi Group.
Wang Zhikun, Executive Vice President of SVOLT, said, “before this round of financing, the last round before IPO, our company was valued at 26 billion yuan.”
The fresh funds will be mainly used for R&D of new technology, new factory construction and supply chain layout. It is estimated that the company’s production capacity will exceed 200Gwh in 2025.
Yang Hongxin, chairman and president of SVOLT, revealed that the company will promote the groundwork for listing as scheduled and strive to land in the capital market as soon as possible.
SVOLT originated as a spin-off from Great Wall Motors’ R&D department in 2018. According to domestic market research and data firm Tianyancha, after the completion of three rounds of financing starting in April of last year, Great Wall Motor’s share in SVOLT dropped from 64.8% to 46%. SVOLT plans to increase its EV battery capacity from 12 GWh to 70 GWh next year.
Last year, the firm announced it would invest 15.6 billion yuan to build a battery plant in Saarland, Germany before 2023, with a capacity of about 20 GWh. Yang Hongxin said, “we are looking for more suitable sites and plan to build one or two large battery production bases in the second half of this year.”
SVOLT announced in July that it received an order worth 16 billion yuan from Stellantis Group, SVOLT’s first customer from overseas markets. At the same time, it plans to reduce the proportion of battery orders from Great Wall Motor to less than 50% next year, a 20% drop.