Target 100GWh Guoxuan Hi-Tech plans to expand production capacity in 2025

SMM: a few days ago, Huang Zhangxi, vice president of Hefei Guoxuan Hi-Tech Power Energy Co., Ltd. said publicly that the company plans to increase its production capacity to 28GWhh in 2020, 80GWhh in 2023 and 100GWh in 2025. At present, Guoxuan Hi-Tech has eight major production bases in Hefei, Lujiang, Jingkai, Qingdao, Tangshan, Nanjing, Nantong and Liuzhou; abroad, the company is considering building plants in Germany, the United States, India and other countries to optimize the global production capacity layout.

After Volkswagen Group took a stake in Volkswagen Group and became a major shareholder of Guoxuan Hi-Tech, the future between the two has been deeply bound together. Volkswagen Group requires its suppliers to achieve the two major goals of "responsible procurement" and "low carbon". In the area of battery supply, Volkswagen Group requires its suppliers to achieve 100% use of renewable energy. According to Huang Zhangxi, Guoxuan Hi-Tech is currently working with Volkswagen Group to analyze energy consumption data and discuss the feasibility of various carbon reduction measures.

Prior to this, Guoxuan Hi-Tech issued a forecast of its results for the third quarter of 2020, which showed that during the reporting period, the company's net profit was expected to be 7000-90 million yuan, down 84.44% and 87.9% compared with the same period last year. Among them, the net profit for the third quarter is expected to be 3386.24-53.8624 million yuan, down 76.25% 85.07% from the same period last year. Looking to the future, the company's goal is to achieve the energy density targets of lithium iron phosphate battery 260Wh/kg and ternary battery 350Wh/kg by 2022, and to achieve annual revenue of more than 40 billion yuan by 2023.

Editor's comments:

In the first three quarters of 2020, the installed capacity of power batteries of Guoxuan Hi-Tech ranked fifth in China. At present, several major customers of Guoxuan Hi-Tech are SAIC GM Wuling, Chery Automobile, BAIC Group, Jianghuai Automobile and Changan Automobile. But looking to the future, the company's biggest reliance on "please climb another tall building" is Volkswagen Group. Previously, the latter has publicly said that the demand for new power batteries in China will reach 100 GWH in 2025, which is quite in line with Guoxuan Tech's capacity expansion plan. I wonder if with the market appeal of Volkswagen Group, can Guoxuan Tech become the champion of domestic power battery suppliers?