Get an advance payment of about 1.05 billion from Mercedes-Benz. 2025 Funeng Technology Power Battery capacity may exceed 120GWh.

SMM survey: what kind of metal do you like most in 2022?

Under the wave of electrification, the products of Chinese high-quality power battery enterprises have been competed by the global mainstream car companies. A few years ago, Funeng signed a 10-year order agreement with Daimler that will accumulate more than 170GWh, making the "soft bag battery unicorn" known for its technical strength famous as the star power battery company in the world.

In April this year, the mass production ceremony of Mercedes-Benz EVA battery was held at the Zhenjiang factory, marking the mass production of the first positive development of Mercedes-Benz battery project on a global pure electric platform supported by Funeng Technology. Funeng Technology said in its 2021 semi-annual report that the Daimler project began to supply and achieve sales revenue, bringing an increase to the company's performance. Now, the cooperation between the two sides has taken a step forward.

Mercedes-Benz paid more than 1 billion yuan for Funeng Technology in advance.

A few days ago, Funeng Technology announced that the company and its wholly-owned subsidiary Funeng Technology (Zhenjiang) Co., Ltd. (hereinafter referred to as "Funeng Zhenjiang") intend to sign a "Supplementary Agreement for Multi-year supply Agreement" (hereinafter referred to as "Supplementary Agreement") with Mercedes-Benz AG (Mercedes-Benz), which stipulates that Mercedes-Benz AG will pay Funeng Zhenjiang an advance payment of about RMB 1.05 billion.

At the same time, in order to ensure the smooth implementation of the Supplementary Agreement, Funeng Zhenjiang plans to sign a "floating charge Agreement" with Mercedes-BenzAG to mortgage the agreed assets to Mercedes-BenzAG. The mortgage assets agreed in the floating charge Agreement include raw materials, semi-finished products and finished goods purchased by Funeng Zhenjiang using the advance payment on or after the signing of the floating charge Agreement to meet Daimler's production and delivery requirements.

Funeng Technology said that Mercedes-Benz AG is an important partner of the company, and the signing of the Supplementary Agreement and the floating charge Agreement will help the company to enrich its cash reserves, ensure the stability of the supply chain of Daimler's customer products, reduce the cost of raw materials, and deepen the cooperation between the two sides, thereby improving the company's performance.

It is reported that Daimler will invest more than 70 billion euros in the next five years to continue to accelerate the electrification and digital transformation. According to Mercedes-Benz Vision 2039, it is planned that by 2025, more than 25 per cent of its global sales will be pure electric models; by 2030, plug-in hybrid and all-electric models will account for more than 50 per cent of its global sales; and by 2039, we are committed to achieving carbon neutrality in the new lineup of passenger cars.

Prior to this, Funeng Technology and Daimler signed a comprehensive commercial cooperation agreement, its key contents include: research and development and commercialization of advanced high-energy-density batteries, and achieve cost competitiveness goals; the technical focus includes a significant increase in driving range by increasing energy density and shortening charging time. The agreement will guarantee Mercedes-Benz's supply of power battery cells in the electrification strategy, while Funeng can ensure its planned capacity construction. Daimler said the cooperation would be an important milestone in Mercedes-Benz's commitment to achieving its "Vision 2039" carbon neutrality goal.

Market participants believe that high-quality power battery capacity is the most scarce resource in the current new energy vehicle industry chain. European traditional vehicle manufacturers have a certain preference for soft-package batteries. Funeng Technology, as a leader in soft-package power batteries, supplies Daimler to the ground. it is not only the affirmation of Funeng technology, but also will become a stepping stone for its breakthrough in European Volkswagen, Peugeot, Renault and many other automobile companies.

Steady discharge of battery

To be favored by Daimler, the world's top auto company, Funeng Technology's product technical strength is naturally particularly outstanding. As the "king of soft-pack batteries" in China, Funeng Technology continues to top the list of installed capacity of domestic soft-pack batteries in 2020, and has achieved the "fourth consecutive crown" in the ranking of installed capacity of soft-pack batteries in the Chinese market.

It is understood that through years of breakthroughs and innovation in lithium gene and material technology, Funeng Technology has developed and verified a new generation of electric vehicle batteries with an energy density of up to 1500 cycles, and the technology can still provide 1500 capacity at minus 20 °C. Its technical hard core advantages are not only reflected in high energy density, but also have obvious advantages in high power, long life, high and low temperature performance and high temperature storage, which are higher than the current level of the industry.

In addition, Funeng Technology has also developed a high-voltage solution for ternary medium-nickel, with an energy density of 285-300Whhand kg, which can meet the requirements of long mileage. At the same time, in order to solve the safety problem of high nickel system and ternary system in the case of large electricity, the development of semi-solid battery of Founeng technology has also entered the industrialization stage.

In order to solve the industry pain points such as slow charging, the 800VTC overcharge and overvoltage technology platform independently developed by Funeng Technology is the industry's first mass-produced 400V and 800V medium and high voltage free switching + fast charging technology platform. The platform technology can reach 2.7C charging, and the whole package charging is equivalent to 2.2C + SOC10% SOC10%-80% 80% charging only takes 15 minutes, which is at the industry-leading level. The next generation technology can reach the charging capacity of SOC in only 7 minutes.

It is reported that in addition to the steady release of batteries for Daimler, the batteries provided by Funeng Technology for mainstream models such as the Aion S upgrade model of Guangzhou Automobile, the new AionV model of Guangzhou Automobile, the Great Wall Ola good Cat and Renault Jiangling Mercedes-Benz will also be released one after another in the second half of the year. Up to now, Funeng Technology customers have covered the world, in addition to Daimler, Beijing Mercedes-Benz, Guangzhou Automobile Eian, FAW, Geely, Great Wall, Tianjing, Dongfeng, Mitsubishi and so on, it is also expanding other customers such as Volkswagen, Audi, Porsche, General Motors, Nissan, Honda and so on.

Funeng is also building more capacity to meet the growing demand for orders. In August this year, Funeng Technology launched an annual 24GWh battery project in Wuhu, Anhui Province; in September, it announced the establishment of a joint venture with Turkish electric car company TOGG, SIRO, to enter Europe to supply customers in Turkey, Russia, Ukraine, Georgia, North Cyprus and other regions of Europe, the Middle East and Africa.

In addition, Funeng Technology has also set up a joint venture with Geely Technology to expand production capacity. At present, Funeng Technology is increasing its horsepower in Ganzhou and Zhenjiang, as well as actively arranging the European and American markets. It is expected that the power battery capacity of Funeng Technology will exceed that of 120GWh in 2025.