Topang Co., Ltd.: planned 5 billion Lithium Battery to expand production and win the bid again Lithium Iron Phosphate Battery for Communication backup

On the evening of December 8th, Topang (002139) announced that in order to expand the scale of lithium battery production, Shenzhen Tuobang Lithium Battery Co., Ltd. (hereinafter referred to as "Topang Lithium Power"), a wholly owned subsidiary of the company, signed an "Investment Agreement" and a "Supplementary Agreement" with effective conditions with the Management Committee of Nantong Economic and technological Development Zone (hereinafter referred to as "Nantong Economic and technological Development Zone Management Committee"). The company plans to set up a new company in Nantong to invest in the construction of lithium battery projects with its own funds or self-raised funds, and to purchase the original Hanhua new energy plant that has completed infrastructure construction, which will be used to build square aluminum shell cells, soft package cells, large cylindrical cells and battery PACK production lines.

According to the agreement, the total investment of Tuobang Lithium Battery Project is 5 billion yuan, and the total design capacity is 6G who battery pack 4GWh. The project will be implemented in three phases, with a total investment of 1.6 billion yuan in the first phase to produce 2GWh cells and 1GWh battery packs; a total investment of 1.7 billion yuan in the second phase, adding 2GWh cells and 1.5GWh battery packs; and a total investment of 1.7 billion yuan in the third phase, followed by new 2GWh cells and 1.5GWh battery packs. The first phase was put into production in two stages, the first stage was put into production of 1.3GWhH, with a total investment of 750 million yuan, including equipment investment of 280 million yuan, and in the second stage, the battery pack 1GWh of 0.7GWhBZ was added.

Tuobang shares said that this foreign investment is the company's strategic layout and business development needs to meet the rapid growth of the company's energy storage business and light power business. By purchasing the existing plant of Hanhua New Energy, the company can quickly build a production line, improve the capacity of lithium battery, and seize the development opportunity of large-scale application of lithium battery.

At present, under the background of dual-carbon goal, the development of new energy vehicles and energy storage is hot, driving the increasing demand for lithium batteries. Guoxin Securities Research News predicts that the global demand for lithium batteries is expected to reach 1187GWh in 2025. The global demand for power batteries is expected to increase from 146GWh in 2020 to 933GWH in 2025; global consumer battery demand will reach 152GWH in 2025; and energy storage battery demand is expected to reach 102GWh.

Battery Network noted that Tuobang shares entered the lithium battery market in 2008, first aimed at the bus and bus passenger car market, and then strategically transformed to the light power direction to make solutions. Now, the company's lithium business is diversified and basically forms the development direction of "energy storage + small power". At the same time, the considerable increase in lithium battery market demand is also helping the company to move forward vigorously in this field.

On the same day of the release of the lithium battery project, Topang also announced that the company recently received a "bid winning notice" issued by the bidding agency of China Iron Tower Co., Ltd. (referred to as "China Iron Tower"). It is determined that the company is the winning bidder of the "China Iron Tower Co., Ltd. 2021 centralized bidding Project for Lithium Iron Phosphate Battery products for Power Reserve". The winning bid amount is about 241 million RMB (excluding tax).

It is worth noting that on July 28, Tuobang shares also received a "bid winning notice" issued by China Mobile's bidding agency. it is determined that the company is the winning bidder of "China Mobile's centralized procurement project of lithium iron phosphate battery products for communications from 2021 to 2022". The winning bid amount is about 175 million yuan.

Tuobang said that winning another bid for the communications backup project will optimize the supply chain of the company's lithium battery business, further consolidate the company's dominant position in the field of communication power backup, and improve the market visibility of the lithium battery business. With the large-scale and centralized construction of 5G infrastructure, the demand for electric energy storage for communications will continue, and the company will continue to expand the business of power storage for communications, seize the opportunity for the rapid development of the energy storage market, and dig deep into the energy storage market in specific areas.

On November 17, Topband shares said on the investor interactive platform that the company had full orders in the fourth quarter, and that some of its products had gradually begun to conduct price transmission downstream. The company has high capacity utilization of lithium battery, and through the acquisition of Ninghui lithium power and fund-raising layout of Huizhou Phase II plant to expand production. The company has full orders in the fields of portable energy storage, household energy storage, electricity reserve, power exchange and so on.