BYD builds 12GWh battery project to sell to external parties

On June 8, BYD issued an announcement regarding "adjustments and changes to the use of part of the funds raised from the company's non-public offering of shares and the verification opinion on the addition of new implementing entities". The announcement mentioned: Based on the actual situation of the investment projects of the raised funds and the company's development needs and other factors, the total amount of raised funds used in the original investment project "Iron Power Lithium-ion Battery Expansion Project" is planned to be adjusted from RMB 6 billion to RMB 5 billion; in addition, the company plans to change the raised funds of RMB 1 billion from this project to be used for investment and construction of the "annual production of 12 gigawatt hours (GWh) power lithium battery construction project" in Qinghai.

BYD said that under the premise of meeting the company's internal needs, the products of Qinghai's "12GWh power lithium battery construction project" will be sold in the domestic and international markets. The company will use the group's strong domestic and international marketing network to develop and sell products, and have close and targeted contact and publicity with potential customers.

It is reported that the Qinghai battery project is expected to use RMB 1 billion of raised funds, and the remaining part will be solved by the implementing entity through self-raised funds. The project covers a total area of ​​1.028 million square meters, with a construction period of 24 months, and is located in Nanchuan Industrial Park, Xining Economic and Technological Development Zone.

Obviously, BYD's investment in the "12 GWh power lithium battery construction project" is backed by policy trends: the "Energy-saving and New Energy Vehicle Industry Development Plan (2012-2020)" issued by the State Council mentioned that by 2020, the number of new energy vehicles in my country is expected to reach 5 million. At the same time, it is expected that by 2025, the total demand for power batteries will reach an annual output value of 100 billion yuan, and the economic impact may reach 1 trillion yuan. As early as 2014, the "Qinghai Province 100 billion yuan lithium battery industry development plan" also clearly proposed that a 100 billion yuan lithium battery industry base with a certain influence in the country will be built in Qinghai, and a lithium industry base development roadmap such as "salt lake lithium carbonate-positive electrode material-negative electrode material-electrolyte, diaphragm-energy storage and power battery-electric vehicle, etc." was proposed.

In fact, the rise of the "dark horse" CATL is constantly challenging BYD's position as the "domestic power battery overlord". Public data shows that from 2017 to the first quarter of 2018, CATL's market share has always surpassed BYD. In April 2018, BYD ranked first with an installed capacity of 1.34GWh, and its monthly installed capacity exceeded CATL again after a year. Therefore, for BYD, "planning to sell products in the domestic and international markets on the premise of meeting the company's internal needs" will be a great boost to its installed capacity.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.