20 Billion! Contract Signed for China Lithium Battery's Traction Battery and Energy Storage System Project to Settle in Huadu, Moving to Make Strong the Emerging New-energy Vehicle Industry

Entrusted by Guangzhou municipal government, Zhang Yong, deputy secretary of the leading party members group and executive deputy mayor of Guangzhou government, had sincere communication with Liu Jingyu, board chair of China Lithium Battery Technology Co., Ltd (CALB). The friendly talk finalized that Huadu District would become home to CALB’s attraction battery and energy storage system base in Guangzhou.

On the same day, a signing ceremony was held in Huadu District for the cooperation agreement between the People's Government of Huadu District and CALB. According to the agreement, CALB will invest and built in Huadu its Guangzhou base of attraction battery and energy storage system; the project, with a total investment of 20 billion yuan and covering an area of 198 acres, is mainly designed to produce attraction batteries and energy storage systems. Relevant leaders of Huadu District Party Committee and District Government, and CALB board chair Liu Jingyu and other leaders of the company attended the signing event.

Optimize the layout along the entire automobile industrial chain, and

Empower the Trillion-yuan Automotive Smart City Strategy

Signing of the agreement is an important step forward in implementing the deployment of Guangzhou Municipal Party Committee and Municipal Government to develop the city on the base of advanced manufacturing industry. It is not only of great significance for Guangzhou’s strategy of expanding and strengthening the emerging industry of new energy vehicles to build a smart city with trillion-yuan automobile industry; but also a major demonstration project of Guangzhou, driven by the dual carbon goals, to promote green development with the new energy vehicle industry.

As the first large-scale traction battery project of Guangzhou, CALB’s project will give a powerful boost to Guangzhou to further complete and strengthen the city’s automotive industrial chain, and to optimize its layout along the entire chain; will provide strong support to attract producers of complete new energy vehicle and to accelerate transformation and upgrading of traditional fuel vehicles; and will infuse strong momentum into the ambition of the city to accelerate the transformation and upgrading of automobile industry and to take the commanding heights of industrial development!

A world leading high-tech enterprise

With expected capacity of 1TWh in 2030

Information shows that China Lithium Battery Technology Co., Ltd (CALB), established in 2007, is a high-tech enterprise specialized in the development, production, sales and market application of lithium batteries, battery management systems and related integrated products, and lithium battery materials, and is committed to providing complete product solutions and perfect full life cycle services for global customers.

CALB’s products mainly consist of ternary polymer lithium batteries and lithium iron phosphate batteries; the company is leading in the world in terms of industry ranking, market share, product competitiveness, customer recognition and brand influence. Since September 2020, the company has occupied a steady position among the top three in China’s new energy market in terms of installed volume; in particular, it ranks No. 2 in installed volume of ternary polymer lithium batteries. CALB now has established a number of industrial bases in Changzhou, Xiamen, Chengdu, Wuhan, and Hefei to form five major industrial clusters in East China, South China, West China, North China, and Central China. The planned production capacity of CALB is expected to exceed 500GWh in 2025, and 1TWh in 2030.

When it comes to customers, CALB has been in comprehensive strategic cooperation with mainstream car engine makers such as GAC, Chang’an, Xiaopeng, Shanghai GM-Wuling, and GAC Toyota, etc., and its cooperation with other mainstream makers, home and abroad, has also entered the stage of technology development or preparation for mass production. In particular, CALB is the largest supplier of GAC and Chang’an, providing over 75% of their installed volume. CALB is also the only traction battery supplier in GAC Aion’s supplier system that has been recognized twice in a row as an "Excellent New Energy Supplier", the only highest award won by a traction battery supplier.

In November last year, Huadu District of Guangzhou and CALB had their first contact for investment cooperation, and finally reached an agreement in the next three months after close communications.

Seize the opportunity of the "Four Trends" of automobile transition and

Build a 250 billion yuan new energy automobile city

As home to the only international air-rail hub in the Guangdong-Hong Kong-Macao Greater Bay Area, Huadu District is an advanced manufacturing industry base of Guangzhou and an international automobile industry base in South China that has the largest industry cluster and the strongest component supply chain. The automobile industry is the No. 1 pillar industry of Huadu, which provides important support for Guangzhou's strategy of building a trillion-dollar automobile industry.

In 2020, the total output of auto enterprises above designated size in Huadu reached 186 billion yuan, accounting for 31% of the total output value of the auto industry in Guangzhou; and with production and sales of 1.2 million vehicles, the District became the first auto industry base in Guangzhou that crossed the 100 billion yuan threshold. Huadu Automobile Industry Base was recognized as a provincial new and high technology industrial development zone, Guangzhou Huadu Economic Development Zone (Automobile) was approved to be included in the first batch of characteristic industrial parks in Guangdong, and Guangzhou Huadu Auto Parts Enterprise Headquarters Economy Zone was identified as one of the three major headquarters economy zones of Guangzhou.

In recent years, following the strategy formulated by the District to achieve high quality development by “Setting the District on the Base of Intelligent Manufacturing” , Huadu takes the initiative to place the District, one with the largest automotive industry in Guangzhou, to embrace the opportunity coming with the “four trends” of automobile development, put in continuous efforts to build industrial cluster around intelligent networking and new energy vehicle industry, actively carry out "customized investment promotion", and accelerate the attraction to the District of batteries, motors, electronic control and other key system, aiming to build an innovative highland of intelligent and connected vehicle industry in the Greater Bay Area and a 250 billion-level intelligent new energy vehicle city in the west of Huadu.