Pylontech Proposes Nearly $750M in Private Placement to Expand Production
Pylontech, an energy storage battery systems provider based in China, released a proposal of private placement on Thursday evening, raising no more than 5 billion yuan ($748.08 million). The funds are intended to be used for the company’s 10GWh lithium-ion battery R&D and manufacturing base project, a headquarters and industrialization base project, and to supplement working capital.
The company’s 10GWh lithium-ion battery R&D and manufacturing base project is planned to be built in two phases, with a 5GWh battery cell and system assembly production line and related supporting facilities in each phase. The first phase of the project is planned to start construction in December 2022, and completed and put into operation in February 2024. The second phase of the project is planned to start construction in February 2024, and completed and put into operation in April 2025.
In addition to expanding the production capacity of soft pack batteries, Pylontech will focus on building a production line for large-capacity square aluminum shell battery cells.
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The large-capacity square aluminum shell battery cells are developed for the application and development of electric energy storage systems, used for power generation, transmission and power distribution. They are based on the rapid grouping structure design and development of energy storage system battery clusters (cell to rack), simplifying the assembly process of energy storage system products to a certain extent and improving the space utilization and grouping efficiency of products in the height, depth and length. The storage energy of a single product is higher than 6 MWh.
At present, the firm has a battery cell and battery system production base in Yangzhou, a city in China’s eastern Jiangsu province. The company has also built battery system production bases in Kunshan, another city in Jiangsu province, and Huangshi, a city in Hubei province. This fundraising project will be settled in Hefei, the capital of Anhui province, thus establishing an integrated production base for 10GWh battery cells and systems.
According to the company’s annual report, by the end of 2021, Pylontech has achieved an annual output of 3GWh battery cell capacity and 3.5 GWh system capacity. This also means that if the fundraising project can be smoothly promoted, the company’s production capacity is expected to expand exponentially.