Funeng Technology has received 26.65 million funds to support the development of low-cost fast-charging battery technology for electric vehicles.

On May 6th, the official WeChat of Funeng Technology (688567) announced that the Advanced Battery Alliance ("USABC") announced that it would award a $4.1 million (about 26.65 million yuan) technology development contract to Funeng Technology for the low-cost fast-charging (Low-Cost,Fast-Charge,) battery technology project of electric vehicles ("LC/FC" for short). The goal of the project is to develop LC/FC lithium-ion battery technology through the development of advanced positive and negative materials, electrolyte formulations and battery optimization design.

It is reported that USABC is a subsidiary of the American Automotive Research Council (USCAR) and a partner of Fiat Chrysler, Ford and General Motors. Supported by a cooperation agreement with the U.S. Department of Energy ((DOE)), USABC's mission is to develop advanced electrochemical technologies to support the wide commercialization of new energy vehicle applications.

According to official data, Funeng Technology was founded in Ganzhou, Jiangxi Province in 2009 and listed in Science and Technology Innovation Board in 2020. It is a leading soft package lithium power company in the world, ranking first in domestic share, second only to LG Chemistry and AESC in international scope. In 2020, the production capacity of Funeng Technology to complete equipment installation has reached 21GWh.At present, the global production capacity is still further expanding.

Since its establishment, Funeng Technology has attached great importance to the research and development of core technologies. According to the company's 2020 annual report, the company invested 372 million yuan in research and development last year, an increase of 37.31 percent over the same period last year, and accounted for 33.21 percent of operating income, up from 12.99 percent in 2019. In 2020, the two core technologies of "high specific capacity cathode material technology" and "power lithium ion battery separator and its preparation technology" have been combined with the company's lithium ion power battery products to enter the trial production stage.

As of December 2020, Funeng Technology has 104 domestic patents and 16 overseas patents, and a total of 92 domestic and foreign patents are being applied for. The products developed by the company in the key research and development direction of high energy density, long life, high rate and fast charging capacity, high safety performance and so on, have successfully entered the industrialization stage. In terms of technology reserve, the company has carried out extensive research and experiments in new cathode materials, new anode materials, high-performance cell chemical system, low-cost medium-performance cell chemical system, new size and new structure cell, next-generation power battery group technology, thermal runaway protection technology, active safety battery control system and other technical fields, and made a series of technical progress. Provide strong technical support for the company's next generation of product development.

Battery network noted that Funeng Technology has now realized the industrialization of 285Wh/Kg soft package lithium-ion power battery. After the opening on April 1, Funeng Technology announced the progress of the research and development of the new technology, and the company's research and development team has developed and verified the next generation of electric vehicle batteries with an energy density of 330Wh/kg; the technology can still provide 90% capacity at minus 20 °C and can be used worldwide.

The continuous breakthroughs in R & D technology have also brought continuous vitality to the development of enterprises. On January 18, the official website of Funeng Technology announced that a few days ago, Funeng Technology and brilliance Xinri New Energy vehicle Co., Ltd. signed a strategic cooperation agreement, the two sides will complement each other, common development, continue to maintain a leading position in the industry, and achieve strategic win-win.

On January 28 this year, Shenzhen Anyan Investment Partnership, which accounts for 19.1% of Funeng Technology's second largest shareholder, changed its industry and commerce, introducing a new shareholder, Chongqing Jianghehui Enterprise Management Co., Ltd. (13.33%). The legal representative of the latter is Xu Zhihao, who is the head of Geely Technology Group. Chongqing Jianghe Huihui is a wholly owned subsidiary of Geely Maijie Investment Co., Ltd. Geely Maijie is 100% controlled by Geely Technology Group. As a result, Geely Technology Group has indirectly acquired a stake in Funeng Technology.

On the evening of April 12, Funeng Technology announced that recently, the company has received a fixed-point notice of the GAC-Mitsubishi LE project that Funeng Technology will develop and supply power batteries for GAC-Mitsubishi LE models with a supply cycle of five years. According to the demand plan, Funeng Technology will be in mass production and supply by the end of this year. The fixed point of the model marks the entry of Funeng Technology into the Japanese supply chain, which is conducive to the layout and sustainable development of Funeng Technology business.

Northeast Securities analysis said that when Funeng Technology is accumulating abruptly, it will continue to maintain deterministic high growth, excellent layout of domestic customers, Mercedes-Benz and other large overseas orders are just around the corner. Considering the acceleration of the company's expansion and the high amortization expenses, the company's net profit from 2021 to 2022 is expected to be-2.6 / 450 million yuan respectively.