Yi Wei Li can reach a 1.23 billion yuan loan agreement with SKI Blue Dragon Energy

SMM News: in order to meet the needs of the operation and development of Huizhou Yiwei Energy Collection Co., Ltd., Huizhou Yiwei Lithium Energy Co., Ltd., Yiwei Energy Project signed a "cash loan contract" with Blue Dragon Energy Co.,Limited. The plan applies to BDE for loans up to a maximum of RMB 1.23 billion yuan (or equivalent foreign currency).

Blue dragon energy co., Ltd.

Blue Dragon Energy Co.,Limited (Blue Dragon Energy) is a subsidiary of SKInnovation in China in 2018 and became more famous in the same year, mainly because SKInnovation hopes to find new business opportunities in its battery business in China through the establishment of subsidiaries. For the Chinese market, SKInnovation's board of directors also decided to invest 86.4 billion won in Dragon Energy.

SKInnovation has set up a new company dedicated to finding a breakthrough in its struggling battery business for electric vehicles in China. BESK, run by SKInnovation, is a joint venture with China's BAIC. But Basque has been closed for a long time because of subsidy discrimination. In addition, SKInnovation has encountered difficulties in building an electric vehicle battery factory in China.

"the purpose of the new investment has not yet been determined, but the purpose is to identify and develop various business opportunities in the Chinese battery market, including financial investment," said an official at SKInnovation. SKInnovation promoted the establishment of the new company to diversify its battery business in China.

Founded in 1962, SK Innovation is the first refining company in South Korea, operating in a variety of areas, including exploration and production (E / P), batteries, information and electronic materials. SKI lithium electricity division has been concerned about the Chinese market for a long time, as early as 2013, with BAIC Group and Beijing Electronics holding Co., Ltd., established Beijing Electronic Control Aiskai Technology Co., Ltd., mainly produces the core of pure electric vehicles-power battery, with a total investment of 1 billion yuan, is the first Sino-foreign joint venture battery enterprise in China at that time. With the release of the new policy, the company failed to enter the list of Chinese battery companies, it was difficult to compete with its peers without government subsidies, and the management was forbidden to stop plans to build power battery plants in China, and the project came to a standstill until it was shortlisted for the "White list of Automobile Power Battery and hydrogen fuel Cell Industries (first batch)" released in May 2018. At the end of 2018, SKI announced the resumption of a joint venture battery plant with BAIC Group and Beijing Electronics holding Co., Ltd., in Changzhou, Jiangsu Province. Basic situation of lithium energy in 100 million latitude

The company currently has a total of 9Gwh production capacity, including square lithium iron 2.5GWh, cylindrical ternary 3.5Gwh, square ternary 1.5GWh, soft package ternary 1.5GWh. The company has an existing production capacity of 1.5 GW in the field of ternary soft package, which is expected to expand to 3G Wh by the end of the year. At the same time, the company has invested 3 billion yuan to build the annual production capacity of 5.8GWh ternary soft package battery, and is expected to put into production in the second half of 2020. The company has obtained Daimler, Hyundai Kia passenger car orders, the future development prospects are good. In the field of non-vehicle market, in 2018, the company made a strategic transformation, the three-element cylindrical production line from the vehicle market to the non-vehicle market, applied to electric tools, garden tools, electric bicycles and other markets. The company has passed the certification of TTI, the world's largest manufacturer of power tools, and supplies it in batches. In addition, the company also through the acquisition of Jinneng Company to expand production capacity and optimize customer structure. In the company's existing production line, Huizhou cylindrical production line is in a full production state, Jingmen cylindrical production line has also formed a shipment. With TTI, Mavericks, Glibo and other major customers to maintain a good relationship of cooperation, orders have been fully guaranteed.

SMM believes that this will have a positive effect on the new development of the 100 million weft lithium energy soft package production line. In July 2018, the company signed a similar cash loan contract with BDE to apply for loans up to a maximum of 500m yuan. The company pledged a 60 per cent stake in the company and appointed South Korean executives to a team of soft-package battery experts. The total amount of the two loans can reach up to 1.73 billion yuan, SKI's confidence in the power battery business, the importance of the Chinese market, can be seen.