Set up factories overseas/open sales/IPO! BYD's battery business "emerging march"
BYD released the blade battery in March 2020. Even if there is the impact of the new crown epidemic in 2020, it will not affect the rapid development of BYD's battery business.
In 2021, BYD's battery business will develop faster!
Overseas factory construction is already in progress
BYD has always kept a low profile, and the same is true for its overseas plant construction. However, from the actions shown by BYD, we can see that their overseas factory construction is in progress.
According to media reports on March 17, BYD's Fordy Battery released an internal recruitment information. Recruitment information shows that the preparation office (European group) of Fordy Battery’s new factory is preparing to build the first overseas battery factory, which is mainly responsible for the production, packaging, storage and transportation of lithium-ion power batteries; recruitment positions include senior project manager, director of craftsmanship Engineers, senior quality engineers, senior equipment engineers, etc., working in Shenzhen/Europe.
This shows that Fordi Battery is currently preparing to build the first overseas battery factory, and its battery business has expanded overseas (Europe).
In response to this situation, Li Yunfei, general manager of BYD's brand and public relations division, said that this is to provide supporting facilities for foreign automobile customers and to prepare for the further expansion of BYD's overseas business.
In fact, BYD’s overseas construction of battery factories may be more convenient and faster than other battery companies. Because BYD Auto currently has branches in Europe, Hungary, France, the United Kingdom, the Netherlands and other places, it will be easier to build a power battery base now.
More open sales
BYD’s external battery supply is already in progress. At the BYD blade battery press conference last year, BYD Vice President He Long said: “Almost all car brands you can think of are discussing cooperation solutions based on ‘blade battery’ technology with us.”
In June 2020, according to overseas media reports, Ford may reach an agreement with BYD and become the first joint venture manufacturer to reach a battery supply agreement with BYD. BYD will provide Ford with electric vehicle components including batteries and power management equipment.
On September 2, 2020, the "Customer No. 1" of Fudi Battery visited the production processes of Fudi's blade battery, and discussed the planning blueprint of Chongqing Fudi battery, the principle of acupuncture experiment of the blade battery, and the technical characteristics of the Pack workshop and assembly section. Wait for an in-depth understanding. It is reported that the "Customer No. 1" who visited Fordy Battery may be a high-level person from Mercedes-Benz or Daimler, the parent company of Mercedes-Benz.
The "Announcement of Road Motor Vehicle Manufacturers and Products" (batch #340) issued by the Ministry of Industry and Information Technology on January 12, 2021 shows that the Hongqi brand new B-class pure electric car "E-QM5" model is equipped with blade batteries.
On February 2, according to the media quoted people familiar with the matter, the BYD blade battery has been designated by Hyundai Motor Group and a Hyundai project team has been established. It is expected to start supplying overseas next year. BYD’s response to the incident was: “It is not convenient for us to disclose customer information. We do not rule out the possibility of future cooperation with Hyundai.”
More than that, it is understood that BYD has cooperated with Changan Automobile to establish a power battery company; it has cooperated with Toyota to provide power batteries; Audi, Porsche and other car companies have also thrown olive branches to BYD batteries; recently there are rumors that Xiaomi’s Lei Jun also once Seek Wang Chuanfu for cooperation!
Fordy Battery is about to IPO
On March 13, 2020, BYD officially announced the establishment of five Fudi-based companies including Fudi Battery Co., Ltd. This move is intended to operate the new energy sector independently to better adapt to market demand and expand overseas markets.
Public information shows that Ford Battery Co., Ltd. was formerly BYD Lithium Battery Co., Ltd. It was established in 1998 and the registration was completed on May 5, 2009. The company has 100% independent research and development, design, and production capabilities in the battery field, and it also has two wholly-owned subsidiaries. One of them, Chongqing Fudi Battery Co., Ltd., developed the BYD blade battery.
BYD's battery business is in a stage of rapid development. SNE Research, a South Korean market research organization, pointed out that BYD batteries will usher in explosive growth in 2021, soaring to the fourth place in the world, with a market share from 2.8% to 7%, and a significant increase in power generation from 401.8% to 180. Million degrees.
According to BYD’s official information, BYD’s battery business is expected to be split and listed in 2022. In an interview with the media, Li Yunfei also said that it is not ruled out that Fudi's battery business will be listed separately to promote business expansion.
The expansion of Verdi Battery is also preparing for the listing. Regarding the Chongqing base, on December 17, 2020, Qin Wenmin, the head of the People's Government of Bishan District, Chongqing City, introduced, “Currently, the Bishan power battery production base has reached a production capacity of 20GWh, and a 15GWh production line will be added soon. Expand the production capacity of the'blade battery' to 35GWh!"
The Ningxiang power battery production base has also held its first production line commissioning ceremony on October 15, 2020. It is understood that this is a blade battery production line. The design capacity of the Ningxiang base is 25GWh.
As for the battery production base in Guiyang, it is reported that blade batteries will be put into production soon. The design capacity of the Guiyang base is 10GWh.
The Hefei base is newly built. It is understood that the total investment of the power battery production base project is 6 billion yuan to build a new energy power battery strategic base with an annual output of 20GWh.
The project is implemented in two phases. The first and second phases of the project have invested 3 billion yuan respectively, and the planned production capacity of each phase is 10GWh. The batteries produced in this project are blade batteries.
So far, the blade battery has been put into production and the planned production capacity has reached 80GWh in total!
In terms of corporate governance structure, on December 11, 2020, Ford Industrial was established. Fudi Industrial has a registered capital of 500 million yuan, and the legal representative is Helong. The business scope of Fudi Industrial includes import and export of goods, technology import and export, sales of new energy vehicle electrical accessories, sales of intelligent power transmission and distribution and control equipment, software development, and artificial intelligence application software development.
On January 4, Chongqing Fudi Battery Research Institute was registered and established with a registered capital of 100 million yuan. The legal representative is He Long. The business scope includes battery manufacturing and sales, electronic special materials research and development, sales and manufacturing, graphite and carbon Product manufacturing, auto parts and accessories manufacturing, new energy vehicle electrical accessories sales, software development, etc.
The market believes that behind the continuous growth of the "Fudi Series" is the separation and listing of BYD's battery business getting closer and closer!
Write at the end
BYD, which started with batteries, has been the global leader in rechargeable battery manufacturers for many years, and its shipments of nickel-cadmium batteries and mobile phone lithium batteries once ranked first in the world.
However, in the domestic lithium-power battery corporate market, although BYD’s battery business predates the Ningde era, its closed system has allowed the latter to quickly occupy the market. Among them, the shipment of lithium power batteries was surpassed by the Ningde era in 2017.
BYD has thus changed its strategy. Its overseas plant construction, external battery supply, and upcoming IPO mean that BYD will start to compete directly with CATL, LG New Energy, Panasonic, etc.!