Sunwoda EVB and Partners to Invest $1.71B in Joint Battery Project

The electric vehicle battery subsidiary of Shenzhen-based Sunwoda will jointly invest about 12 billion yuan ($1.71 billion) alongside three other parties to build a 30GWh battery production base, according to an announcement on September 15.

The partners of Sunwoda EVB in this endeavor include the Yichang Government, Dongfeng Motor Corporation and Dongfeng Hongtai Holdings. Dongfeng Motor is a major automobile enterprise directly managed by the Chinese central government, headquartered in Wuhan, Hubei Province. Its business covers commercial vehicles, passenger cars, new energy vehicles, key automobile assemblies and parts, and more. Dongfeng Hongtai Holdings is the business unit of Dongfeng Motor, responsible for core auto parts and low-carbon services.

The new project is mainly targeted at the R&D, design, production and sales of battery cells, modules, packs and systems. It is to be implemented in two phases, with an investment of about 8 billion yuan in the first phase and about 4 billion yuan in the second phase.

Sunwoda EVB, which was established in 2014, has a complete set of solutions, mainly for electric vehicle batteries and energy storage batteries.

According to Sunwoda’s report, with the growth of new energy vehicle market demand, the company’s power battery shipments totaled 3.95 GWh in the first half of 2022, achieving revenue of 4.2 billion yuan, up 631.92% year-on-year. According to the latest data from the China Automotive Battery Innovation Alliance, Sunwoda’s battery loading capacity from January to August reached 4.04 GWh, ranking fifth in China.

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On August 25, Sunwoda disclosed a convertible bond loan and related party transactions of its subsidiary, Sunwoda EVB. Meituan appeared on the list of investors. In August, Sunwoda EVB also completed round-A financing, and with the above-mentioned convertible bond loans from investors, the accumulated amount of this round of financing was about 8 billion yuan. The firm’s post-investment valuation was about 30 billion yuan.