Jiaxing, Zhuhai Guanyu re-Luozi, plans to invest no more than 4 billion yuan to build an annual 10GWh lithium battery project.

On the evening of November 18th, Zhuhai Guanyu (688772) announced that Zhejiang Guanyu, a wholly owned subsidiary of the company, plans to build a new lithium-ion power battery project in Baibu Economic Development Zone, Haiyan County, Jiaxing City, Zhejiang Province, with an annual output of 10GWh lithium-ion power battery, with a total investment of no more than 4 billion yuan, of which fixed asset investment is about 3.5 billion yuan.

It is reported that Zhejiang Guanyu signed the Project Investment Agreement with the people's Government of Haiyan County and the Management Committee of Zhejiang Baibu Economic Development Zone on the same day. The construction period of the project is expected to be 36 months (2022-2025), finally based on the actual construction situation.

Zhuhai Guanyu said that this investment meets the needs of the company's development strategy, helps to expand the scale of the company's power battery business, enhances the company's influence and comprehensive competitiveness in the new energy industry, and has a positive impact on the company's future development. This investment is expected to start construction in 2022, which has no significant impact on the company's financial position this year.

Battery Network noted that Zhuhai Guanyu was established in 2007, headquartered in Zhuhai, has two major production bases in Zhuhai and Chongqing, and set up factories in India. Last month, Zhuhai Guanyu successfully landed on Kechuangban of Shanghai Communications Co., Ltd. This time IPO raised about 2.247 billion yuan, which will be used for Zhuhai polymer lithium battery production base construction project, Chongqing lithium battery cell packaging production line project, R & D center upgrading project and supplementary liquidity project.

As the leader of consumer lithium power, Zhuhai Guanyu power business currently has a small production capacity and is still at a loss stage. The company's power business losses in 2019 and 2020 are 885000 yuan and 126 million yuan respectively. For this reason, Zhuhai Guanyu urgently needs to expand the production capacity of power batteries.

The good news is that Zhuhai Guanyu is actively exploring incremental markets such as power, successfully entering SAIC's supply chain at the beginning of this month.

Zhuhai Guanyu announced on November 4 that Zhuhai Guanyu Power Battery, a wholly owned subsidiary of Zhuhai Guanyu Power Battery, recently received a "fixed-point notice" from SAIC. SAIC chose Guanyu Power Battery as its designated supplier to develop and supply 12V lithium batteries for its Zhiji LS7 model. Guanyu Power Battery will be mass produced and supplied in 2022.

Oriental Fortune Securities analysis said that Zhuhai Guanyu's current power lithium battery products are mainly car start and stop systems and motorcycle batteries, the early supply of Haojue, Cummins, China Motor and other motorcycle and commercial vehicle enterprises. Zhiji Automobile is a brand jointly founded by SAIC, Alibaba and Zhangjiang Hi-Tech. LS7 is its first high-end pure electric SUV, standard Model Y and BMW X3. This fixed point once again proves the company's deep internal skills in the technology and products in the field of lithium electricity as a consumer lithium electricity leader. at the same time, it also marks the company's entry into SAIC's supply chain system, laying a solid foundation for the continuous expansion of customer resources in the future.

According to the Zhuhai Guanyu plan, under the trend of expanding the application field of lithium-ion battery and increasing demand, the company will persist in developing its existing main business, gain a foothold in the field of consumer battery, maintain the leading position of notebook battery in the industry, and further increase the market share of mobile phone battery, while expanding its business in other application areas, such as drone battery, smart wearable battery, etc.

In the power battery market, Zhuhai Guanyu will gradually expand the range of power lithium-ion battery products, gradually extending from the current business of automobile start-stop battery and electric motorcycle battery to pure electric vehicle battery and energy storage battery, enhance the market competitiveness of power lithium-ion battery, and strive to step onto a new level within five years.