Zhuhai Guanyuzi Co., Ltd. plans to invest 4 billion yuan in lithium-ion battery project and plan to put into production in 2025.

On March 1st, Zhuhai Guanyu announced that Zhejiang Guanyu, a wholly-owned subsidiary of the company, plans to invest in the construction of a new high-performance lithium-ion battery project by setting up a project company in Chongqing Wansheng Economic and technological Development Zone in accordance with the law. The total investment of the project is expected to be 4 billion yuan, which is scheduled to be completed and put into production in 2025.

Zhuhai Guanyu Zi Co., Ltd. plans to build a new lithium-ion battery project; screenshot of Zhuhai Guanyu announcement

Data show that Zhuhai Guanyu is a lithium-ion battery supplier, the main products are polymerized soft-package lithium-ion batteries. According to the downstream application field, it can be divided into consumer lithium-ion battery and power lithium-ion battery, its consumer lithium-ion battery products include battery and PACK, application field, including notebook computer, tablet computer, smart phone, smart wearable device, consumer UAV, etc.; power lithium-ion battery products including battery, module and PACK, are mainly used in automobile start-stop system and electric motorcycle.

It should be pointed out that compared with consumer lithium-ion battery plate, power lithium-ion battery plate accounts for a small proportion of Zhuhai Guanyu's total revenue. Official data show that from 2018 to 2020, the sales revenue of Zhuhai Guanyu Power Lithium Ion batteries was 9.88 million yuan, 7.65 million yuan and 11.06 million yuan respectively, accounting for 0.22%, 0.15% and 0.16% of the main business income in the current period, respectively.

However, in view of the rapid rise of the new energy vehicle market and the sharp rise in demand for power batteries, Zhuhai Guanyu has been increasing investment in lithium-ion power batteries in the past two years in an attempt to expand market share.

It is reported that in October last year, Zhuhai Guanyu landing science and technology board, IPO raised 3.249 billion yuan, of which 400 million yuan was used for R & D center upgrading projects, aimed at strengthening research and development efforts in the areas of automobile start-stop system, PHEV power battery and BEV power battery.

In November of the same year, Zhuhai Guanyu announced that its wholly-owned subsidiary Zhejiang Guanyu plans to build an annual 10GWh lithium-ion power battery project in Jiaxing, Zhejiang Province, with a total investment of 4 billion yuan, which is expected to be completed in 2025.

It is worth noting that also in November, Guanyu Power Battery, a wholly owned subsidiary of Zhuhai Guanyu, received a fixed-point notice from SAIC and became a designated supplier to Shanghai Automobile Group to develop and supply 12V lithium batteries for Zhiji LS7 models.

Zhiji LS7 is Zhiji's new pure electric SUV, which is scheduled to be put into mass production this year. According to SAIC's demand plan, Guanyu power battery will also be mass produced and supplied this year, and the specific product supply time, price and supply will be subject to the signed supply agreement and sales order.

It is also understood that in addition to SAIC, Zhuhai Guanyu Power Lithium Ion Battery products have also entered the supply chain system of Haojue, Cummins, Zhonghua Automobile and other manufacturers.