Heavy! Ningde Times and Tesla extend the Power Battery supply Agreement to 2025

On the evening of June 28th, Ningde Times (300750) issued an announcement. In February last year, the company and Tesla,Inc. And Tesla (Shanghai) Co., Ltd. (hereinafter collectively referred to as "Tesla") signed "Production Pricing Agreement (China)", the company plans to supply Tesla with lithium-ion power battery products from July 2020 to June 2022. On the 25th of this month, in order to further extend and deepen the friendly and cooperative relations between the two sides, on the basis of the above agreement, the company signed "Production Pricing Agreement" with Tesla. According to the agreement, the company will supply Tesla with lithium-ion power battery products from January 2022 to December 2025.

The announcement shows that within the time limit stipulated in the agreement, Tesla will purchase lithium-ion power batteries from Ningde Times, and the specific purchase situation of Tesla will be determined by order, and the final sales amount must be based on the actual settlement of the purchase order issued by Tesla.

The signing of the agreement indicates Tesla's further recognition of the product quality and production capacity of power batteries in Ningde era, which will help to strengthen the long-term and stable cooperative relationship between Ningde era and Tesla.

Battery Network noted that on June 2, Ningde Times and Great Wall Motor formally signed a 10-year long-term strategic cooperation framework agreement. According to the agreement, Ningde Times and Great Wall Automobile will make use of their own advantages and, based on deep cooperation, enhance the level of linkage between supply and demand, create an efficient cooperative competitive advantage, and promote the scientific and technological progress of new energy vehicles. to help achieve the goal of "carbon peak" and "carbon neutralization".

In addition, recently, Ningde era has also interacted frequently with Volkswagen, Daimler, Aichi and other auto companies.

In order to meet the supply demand, in recent years, Ningde era continues to increase investment and expand production capacity.

Guoxin Securities Research report shows that from 2018 to 2020, the announced production capacity of Ningde Times is 27.72, respectively, with an annualized compound growth rate of 57.9% in the past three years. In order to further meet the terminal demand brought by the global electrification wave, the company has accelerated production expansion. After announcing the 39 billion production plan in December 2020, the 29 billion production expansion plan was announced again. If calculated according to the investment cost of 300 million yuan / Gwh, the two expansion corresponds to the new production capacity of 227Gwh. At present, Ningde has planned eight major self-built production bases, including Ningde Zhangwan District (Dongqiao / Hudong / Huxi), Cheliwan, Fuding, Liyang Base, Sichuan Yibin and Qinghai Base, Thuringen, Guangdong, superimposed with SAIC, Guangzhou Automobile, Geely, FAW, Dongfeng production capacity layout, according to the announced capacity expansion forecast, 2021pm 2022pm 2023 production capacity is 163253Gwhr, The planned production capacity is about more than 600Gwh (sole proprietorship / joint venture 480/140Gwh), and the capacity investment will peak in the next few years.

It is worth noting that Battery Network learned from the 2021 tracking rating report on the public issuance of corporate bonds in the Ningde era that the company has a large investment in projects under construction, which has brought greater pressure on capital expenditure; the power lithium battery industry has the characteristics of rapid expansion of the overall production capacity, obvious policy guidance for the electric vehicle market, and rapid technological innovation, and the company's digestibility in the construction capacity remains to be seen. The project under construction of the company is mainly used to expand production capacity. by the end of 2020, the company plans to invest 49.223 billion yuan in major projects under construction, with an investment scale of 34.468 billion yuan, and the company has a large scale of follow-up capital expenditure.

On the same day, Ningde Times also announced that in order to cooperate with the company to further improve the layout of the new energy industry, on June 25, Ningde Times jointly signed the "Shandong Green Development Equity Investment Fund Partnership (Limited Partnership) Partnership Agreement" with China Capital Operation Co., Ltd., Qingdao Green Development Fund Management Co., Ltd., and other partners. As one of the limited partners, the company participates in investing in "Shandong Green Development Equity Investment Fund Partnership (Limited Partnership)" (hereinafter referred to as "Fund"). The fund will focus on investing in energy conservation and emission reduction, environmental protection and governance, clean energy, circular economy, green manufacturing and other new energy fields.

According to the announcement, the total capital contribution subscribed by the fund is 1.4574 billion yuan, and the company subscribes to 100 million yuan as a limited partner. After the completion of this investment, the company holds 6.86% of the subscription proportion of the fund.