Yiwei Lithium can be a joint venture with German Nano to focus on the production of low-cost and high-quality lithium iron phosphate.

On the evening of March 23rd, Yiwei LiNeng (300014) announced that the company will set up a joint venture with German Nano (300769) in the form of joint investment. The registered capital of the joint venture is proposed to be 100 million yuan, of which the company subscribes 40 million yuan and holds 40% equity. German Nano subscribed 60 million yuan and held 60% equity.

According to the announcement, the joint venture will focus on the production of low-cost and high-quality lithium iron phosphate and give priority to supply to Yiwei Lithium Energy and its subsidiaries. The total investment of the joint venture project is 2 billion yuan and the annual production capacity is 100000 tons.

It is reported that the company's previous iron-lithium customers are mainly domestic commercial vehicle customers and communications energy storage, the iron-lithium production capacity will be 4GWH in 2020, the new 6GWh capacity is expected to be completed in the fourth quarter of this year, and the long-term production capacity is planned to be 20GWh.

In recent years, with the gradual decline of subsidies for new energy vehicles, battery safety has been paid more and more attention and technology breakthroughs have been made, and the application proportion of lithium iron phosphate in passenger cars has increased rapidly. in particular, the car companies represented by Tesla, Weilai, Xiaopeng and BYD are supporting in the middle and high-end models, and the market capacity of lithium iron phosphate passenger cars continues to break through.

It is precisely aiming at this market that in 2021, Yiwei LiNeng announced that it would invest no more than 4.9 billion yuan to build a square lithium iron phosphate battery production base for passenger cars in Tonghu Ecological Intelligence District of Huizhou on February 18 and March 9, respectively, and its production capacity is expected to reach 16GWh.

In addition, in the announcement in February this year, Yiwei LiNeng also disclosed that the company plans to invest 2.6 billion yuan in the construction of the "xHEV Battery system Project (Phase I)", including 12V and 48V battery systems. After winning a 48V order from BMW Group in October 2020, Yiwei LiNeng was again designated by Jaguar Land Rover's "20Ah MHEV Battery" project in February this year, fully proving its strength in the field of automotive low-voltage batteries.

In terms of three-yuan soft package, Yiwei Lithium currently has 10GWh production capacity, which is mainly for mainstream car companies such as Daimler, Xiaopeng and Hyundai Kia, and maintains a high level of capacity utilization throughout the year. If the customer development is stable, it is expected to further expand production.