Yiwei Lithium Energy plans to raise an additional 9 billion yuan for passenger car lithium-ion power battery projects, etc.

On the evening of June 7, Yiwei Lithium Energy announced that it plans to issue A shares to specific objects and raise 9 billion yuan to invest in the "passenger vehicle lithium-ion power battery project", "HBF16GWh passenger vehicle lithium-ion power “Battery projects” and replenish working capital to easeproduction capacitypressure, meet more urgent customer delivery needs, and further consolidate market leadership.

Image source: Yiwei Lithium Energy

Among them, the passenger car lithium-ion power battery project plans to build an automatic production line of 46 series of power storage lithium-ion batteries in Jingmen City, Hubei Province. After the project is put into production, it will form an annual production capacity of 20GWh of 46 series of power storage lithium-ion batteries.The project is implemented by Yiwei Power, a subsidiary of Yiwei Lithium Energy, with a total investment of 4.375 billion yuan and a construction period of 3 years.

The HBF16GWh passenger car lithium-ion power battery project plans to build an automated production line for square lithium iron phosphate batteries in Jingmen City. After the project is put into production, it will form an annual production capacity of 16GWh square lithium iron phosphate batteries.The project is also implemented by Yiwei Power, with a total investment of 4.127 billion yuan.

At present, driven by both policy-driven and end-market demand growth, the globalnew energy vehicleindustry is booming, which has greatly driven the growth of the power battery market.Previously, Liang Rui, vice president of Sunwoda, predicted that by 2025, the global demand for power batteries is expected to reach 1268.4GWh, officially entering the "TWh" era, and it will exceed 3TWh in 2030.Among them, in the Chinese market alone, the demand for power batteries in 2025 will reach 568.7GWh.

Coupled with the vigorous development of the energy storage market, multiple drivers will drive the rapid growth of the power storage lithium-ion battery industry in terms of total volume, creating huge development opportunities for industry participants.Yiwei Lithium Energy's power storage lithium-ion battery capacity construction project was formally proposed based on this background, aiming to better meet the market and customer demand for high-end power storage lithium-ion batteries, while further consolidating market position.

Image source: Yiwei Lithium Energy

Whether it is in terms of power battery installed capacity or market influence, Yiwei Lithium Energy is currently at the forefront of the industry.According to previous statistics from South Korean market research agency SNE Research, from January to March 2022, the global installed capacity of power batteries was 95.1GWh, a year-on-year increase of 93.3%.Among them, the installed capacity of Yiwei Lithium Energy from January to March reached 1.1GWh, a year-on-year increase of 132.4%, ranking among the top 10 global power battery suppliers.

In the domestic market, according to the statistics of China Power Battery Industry Innovation Alliance, the installed capacity of Yiwei Lithium Power Battery in 2021 will be 2.92GWh, with a market share of 1.9%, ranking eighth in China; in the first quarter of this year, Yiwei Lithium Energy The installed capacity of power batteries is 1.09GWh, with a market share of 2.13%, ranking seventh.

The sharp increase in installed capacity has driven the rapid growth of Yiwei Lithium's overall revenue scale and profit.It is understood that from 2019 to 2021, the operating income of Yiwei Lithium Energy increased from 6.412 billion yuan to 16.90 billion yuan, and the net profit attributable to the parent increased from 1.522 billion yuan to 2.906 billion yuan, of which power battery is the fastest growing business of Yiwei Lithium Energy. An important engine, the important strategic significance of expanding production can be imagined.

Image source: Yiwei Lithium Energy

In fact, since last year, Yiwei Lithium's production expansion plan has shifted from focusing on power batteries to a dual-thread development model of power and energy storage.According to incomplete statistics, as of this fundraising project, the total planned power battery capacity of Yiwei Lithium Energy has exceeded 200GWh, including the Jingmen Power Storage Battery Industrial Park with an annual output of 152.61GWh announced in November last year in Jingmen, Hubei. The projects include the construction of a passenger vehicle lithium-ion power battery project and xHEV battery system project in Huizhou, Guangdong, and the construction of a power storage battery production base with an annual output of 50GWh and a Chengdu Research Institute in Chengdu, Sichuan.At present, Yiwei Lithium Energy is still accelerating production capacity construction.

In addition to this fundraising project, Yiwei Lithium Energy also announced that it plans to invest in the construction of an "annual output 10GWh power storage battery project" with the Qujing Municipal People's Government and the Qujing Economic and Technological Development Zone Management Committee in the area of ​​the Qujing Economic and Technological Development Zone Management Committee. "Related matters signed the "Annual Output 10GWh Power Storage Battery Project Investment Agreement".The total investment of this project is about 3 billion yuan, and the investment in fixed assets is about 2.3 billion yuan.

In addition, Yiwei Lithium Energy also plans to set up an energy storage headquarters and an energy storage technology research institute in the East Lake High-tech Zone, and signed a cooperation agreement with the management committee of Wuhan East Lake New Technology Development Zone in conjunction with its subsidiary Yiwei Energy Storage.The total investment of the project is about 3 billion yuan. It is planned to be located in the Optoelectronics Park. The construction content includes office, testing workshop, and supporting facilities.

Among them, the energy storage headquarters is responsible for the overall management of Yiwei lithium energy storage business, and has jurisdiction over various regional business companies. As the main body of the national energy storage business revenue settlement, it holds and manages relevant intellectual property rights.The Energy Storage Technology Research Institute plans to carry out the research and development of the core technology of lithium-ion batteries and the small-scale manufacturing of energy storage equipment, and establish a ternary prismatic battery research institute, a lithium iron phosphate battery research institute, a fuel cell research institute, and a power system design institute.