Battery manufacturer Sunwoda announced on Tuesday that it plans to sign a project investment agreement with the Lanxi Municipal People’s Government of Zhejiang Province in eastern China. The main products of this project are high-performance cylindrical lithium-ion batteries. The undertaking involves a total planned investment of 2.3 billion yuan ($344.08 million) to build a facility with an annual output of 310 million high-performance cylindrical lithium-ion batteries.
According to the announcement, the engineering work of the project will start in August 2022, and it will be put into use in December 2023.
Sunwoda said that the project is intended to open up new business content and product market application fields, which is conducive to accelerating the company’s layout in the lithium battery industry. The capital for this transaction is sourced from the company’s self-raised funds, which will not adversely affect the normal operation of the company.
Sunwoda has been making constant efforts in the field of lithium batteries recently. In March, Sunwoda Electric Vehicle Battery Co., Ltd. (Sunwoda EVB), a subsidiary of Sunwoda, signed a project investment agreement with the Shifang Municipal Government. The total investment of the project is planned to be 8 billion yuan, used to build a production base for 20GWh power battery and energy storage batteries. Sunwoda EVB also plans to invest in the construction of a 30GWh power battery project within the jurisdiction of the Zhuhai Municipal Government, with a planned total investment of about 12 billion yuan.
The above investments correspond to the company’s strategic planning. Sunwoda’s 2021 annual report shows that in order to cope with the company’s continuous expansion in the future and the implementation of industrial chain strategic integration, the company has formed eight production bases in Shenzhen, Jiangsu and Zhejiang, and it will build two new bases in Guangdong and Sichuan in the future.
The company’s power battery revenue reached 2.933 billion yuan in 2021, an increase of 584.67% year-on-year. In addition to Nissan-Renault-Mitsubishi and other international customers, the company has cooperated with most domestic customers with HEV demand, and will reportedly start bulk delivery sometime this year.