Major Chinese lithium supplier Ganfeng Lithium announced in May that its subsidiary Ganfeng LiEnergy Technology has signed an agreement with the government of Xiangyang for the development of a project related to battery manufacturing and R&D. Xiangyang is a city located in China’s Hubei Province. The total investment in this project is estimated around RMB 2.5 billion.
The project will utilize existing facilities located in an old industrial site north of Huizhan South Road and east of Chufeng Road in Xiangyang. The project is set to span an area of 240 mu, and the investment in its fixed assets is estimated to be at least RMB 1.25 billion.
Under the agreement, the first phase of the project will involve the setup of facilities for the manufacturing of battery cells and packs. The first phase is designed to have a production capacity of 5GW per year. According to the development schedule, the first phase will advance to the construction stage this May and enter operation this December.
As a subsidiary of Ganfeng Lithium, Ganfeng LiEnergy Technology is focused on the manufacturing of Li-ion batteries for a range of applications, including consumer batteries, small polymer batteries, NEV power batteries, energy storage batteries, and solid-state batteries. Its product portfolio is divided into five major categories, and the types of batteries that it is offering have reached around 20-plus in number. Furthermore, Ganfeng LiEnergy Technology is seen as being ahead of other Chinese battery manufacturers in the commercialization and manufacturing of solid-state batteries.
Ganfeng LiEnergy Technology stated that this project will play a crucial role in scaling up battery production and improving R&D capability. The company will then be able to capture more market share and optimize its vertical integration efforts. All in all, this investment aligns with Ganfeng Lithium’s growth strategy as it enhances the core competitiveness of the parent company and subsidiary. Once the project enters operation, positive effects on Ganfeng Lithium financial performance are expected.
