SAIC's huge investment in lithium battery new energy vehicle target 600,000

SAIC Group had previously predicted that China's new energy vehicle market will usher in explosive growth, so it has launched a rapid layout in the new energy field. It is learned from the official SAIC Group that the car company will establish two joint ventures through its wholly-owned subsidiary and Ningde Times, mainly engaged in the development, production and sales of lithium batteries.

According to insiders of SAIC, the total size of the joint venture company will reach 30GWh, which can have the capacity of 600,000 pure electric Roewe ERX5 batteries. According to the planning of SAIC, the new energy model will reach 600,000 units in 2020, and the new power lithium battery project will undoubtedly provide more sufficient power guarantee.

SAIC's huge investment in lithium battery new energy vehicle target 600,000

According to the public information, SAIC will establish two new joint ventures through its wholly-owned subsidiary, Shanghai Automotive Group Investment Management Co., Ltd. and Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as “Ningde Times”). SAIC Power Battery Co., Ltd. and SAIC Era Power Battery System Co., Ltd.

The products of SAIC and Ningde Times joint ventures, in addition to SAIC's own brand products, will also enter the procurement system of SAIC's joint ventures, which means that, including SAIC's own brands and SAIC joint ventures, both will be in the Shanghai and Ningde eras. The joint venture company purchases power batteries.

SAIC's huge investment in lithium battery new energy vehicle target 600,000

Among them, the registered capital of Shanghai Automotive Power Battery Co., Ltd. is RMB 2 billion. SAIC intends to hold 49% of the shares, and Ningde Times intends to hold 51% of the shares. The company will mainly engage in the development, production, sales and after-sales service of lithium-ion batteries and lithium polymer batteries.

The registered capital of SAIC Power Battery System Co., Ltd. is RMB 300 million. SAIC intends to hold 51% of the shares, and Ningde Times intends to hold 49%. The company will be principally engaged in the development, production and sales of power battery modules and systems.

At the same time, the joint venture between SAIC and Ningde era is open: the two joint ventures can become suppliers outside the SAIC system; the joint venture between the two parties is not exclusive. At the same time as SAIC and Ningde Times joint venture, there is also a joint venture with Wanxiang Group. Jiexin Power Battery System Co., Ltd., while Ningde era can also find other partners.

SAIC's huge investment in lithium battery new energy vehicle target 600,000

According to informed sources, the total size of the joint venture company will reach 30GWh, and it can produce the equivalent of 600,000 pure electric Roewe ERX5 or 3 million plug-in hybrid battery supply capacity.

As a reference, BYD's 2016 lithium battery shipments are about 8Gwh, both of which are lithium iron phosphate batteries. The company's power battery business unit revealed that the company is expanding the potholes base, increasing production capacity by 6GWh, and is expected to reach production in 2017. In addition, its long-term plan, its battery capacity is expected to reach 34GWh by 2020. From the global market point of view, the new plant of Gigafactory, the electric vehicle industry leader Tesla, is expected to have a capacity of 35GWh (approximately 500,000 electric vehicles), and it is planned to reach full production by 2020.

Nowadays, SAIC Group's joint venture and cooperation with several power battery companies is expected to exceed the overall production capacity of power batteries by more than BYD and Tesla in 2020.

In addition to the cooperation project with the Ningde era, SAIC previously established Shanghai Jiexin Power Battery System Co., Ltd. (hereinafter referred to as “Jiexin Power”) jointly with A123 System Hong Kong Co., Ltd., with the US A123 being universally in 2013. In the group acquisition, Jiexin Power became a joint venture between SAIC and Wanxiang Group. Among the joint ventures, SAIC Group accounted for 51% of the shares.

SAIC's self-owned passenger car new energy product battery source

Jiexin Power E50, e550, eRX5 (battery management system, battery pack)
Ningde era e950, eRX5 (cell), ei6, ERX5

Jiexin Power mainly provides power battery systems for the Roewe E50 pure electric vehicles of the SAIC Group passenger car branch and the e550 and eRX5 plug-in hybrid vehicles. Starting from eRX5, the Ningde era provided batteries for SAIC's new energy vehicles. The Roewe e950 currently uses batteries from the Ningde era, and the cooperation between the two sides is further deepened.

SAIC's huge investment in lithium battery new energy vehicle target 600,000

SAIC's independent new energy passenger car planning

SAIC Group's sales target of 600,000 new energy vehicles by 2020 will account for 200,000 self-owned brands. Wang Xiaoqiu, vice president of SAIC Group and general manager of SAIC Passenger Vehicle Company, said earlier: “The development direction of new energy vehicles cannot be changed any more. SAIC’s self-owned passenger vehicles will launch a plug-in hybrid vehicle in the second half of this year, until 2018. Roewe also has a plan to launch a pure electric and two plug-in hybrid models, including the launch of a new energy model by the MG, and nearly eight new energy products will be launched in the market."