Total investment reaches 66 billion, BYD's two major battery projects receive good news one after another.

Huaxia Energy Network & Huaxia Energy Storage (WeChat public account hxcn3060) learned on March 27 that Xianju County, Taizhou City, released a public notice on the approval of an environmental impact assessment document, signifying that the Taizhou BYD New Energy Power Battery Project (hereinafter referred to as the "Taizhou Project") will enter the implementation phase.

It is reported that the project has an investment scale of 10.02 billion yuan and an annual production capacity of 22GWh.

BYD Battery isBYDThe battery manufacturer under (SZ:002594) produces power batteries, energy storage and new type batteries, as well as consumer batteries, and has the capability of 100% independent research, design, and production of batteries.

The day after the environmental impact assessment approval public notice for the Taizhou project was released, the first phase of Weichai Fudi (Yantai) New Energy Powertrain Industrial Park (hereinafter referred to as the "Yantai Phase One Project") officially went into production, with the first battery product being rolled off the line. The total investment in this project amounts to 56 billion yuan.

Two major projects have consecutively brought good news over two days, highlighting BYD's ambitious plan to significantly expand its battery production capacity. As of now, BYD's弗迪电池(Freely Battery) has established 12 major production bases nationwide, with a total planned capacity exceeding 500 GWh, placing it among the top 3 global leaders in battery production capacity.

The Taizhou project has a planned annual production capacity of 22GWh.

The environmental impact assessment document shows that the Taizhou project will construct new factory buildings and supporting facilities, build power battery production lines and supporting aluminum shell lines, electrolyte lines, NMP distillation systems, etc., with 10 sets of positive electrode coating production lines; 2 oven workshops; 2 primary injection, formation workshops; 2 secondary injection, formation workshops; 2 tertiary injection, formation workshops; the NMP distillation process is vacuum distillation; the electrolyte production line is closed production; 2 needle-puncture laboratories; 2 IQC laboratories; hazardous waste rooms are equipped with sealed independent rooms and overall ventilation.

The planned annual production capacity of the project is up to 22 GWh.

What does an annual production capacity of 22GWh mean? With 60kWh per vehicle, 22GWh of power batteries can support approximately 360,000 pure electric vehicles, accounting for about 5% of the national new energy vehicle sales in 2024.

It is understood that the project will use Ford's latest sixth-generation blade battery technology, which improves energy density by 15% compared to the previous generation, reduces production costs by 10%, and supports an 800V high-voltage fast charging platform, making it suitable for the next generation of high-end electric vehicle models.

Upon completion and operation, the Taizhou project is expected to generate an annual output value of approximately 20 billion yuan and provide 6,000 job opportunities for the local area.

Taizhou is located in Zhejiang Province, in the Yangtze River Delta region, BYD,Tesla Geely and other car companies have factories here. The Fudi Taizhou project will effectively radiate the Yangtze River Delta new energy vehicle industry belt, providing nearby supporting support for vehicle manufacturers.

The planned production capacity of the Yantai project is 50GWh.

The first phase of the Yantai project has an annual production capacity of 20GWh for battery cells and PACK production lines, equivalent to the annual production of 300,000 commercial vehicle power battery systems.

The project is progressing at an extremely fast pace: construction began in March 2024, with the topping out of a 260,000 square meter factory completed in 100 days, the main structure finished in 200 days, and the first products rolled out in 300 days. This pace has set a record as the fastest among all domestic projects under construction by BYD Battery.

It is worth noting that the Yantai project initially planned to invest 56 billion yuan, covering an area of approximately 1,700 acres, and aims to create a research and manufacturing base that spans the entire industrial chain of power batteries, electric motors, electronic controls, and electric drive assemblies for new energy commercial vehicles.

The project is divided into two parts:

The first is the Weichai Fudi Battery Construction Project, which focuses on creating a production base for 50GWh power batteries and energy storage system cells and supporting components. It employs the latest 2.0 equipment and processes developed by Fudi Battery Co., Ltd. to produce the latest model of blade battery cells.

The second is the Weichai (Yantai) New Energy Industrial Park construction project, which will establish a manufacturing base for core components of new energy vehicles. Upon completion, it will have an annual production capacity of 50GWh battery PACKs, 500,000 flat wire motors, 400,000 electronic control units, and 50,000 electric drive assemblies.

The project is divided into three phases of construction, and upon full production in 2030, it will achieve an annual sales revenue of 100 billion yuan.

Capacity competition accelerates again.

In addition to the Taizhou project and the Yantai project, in February of this year, Fudi Battery officially started construction on a three-module project in Guangxi. Once completed, the project will add an annual production capacity of approximately 7GWh.

The accelerated expansion of BYD's battery production capacity is driven by market demand on one hand and influenced by BYD's overall strategic layout on the other.

On March 25th, Wang Chuanfu, the chairman of BYD, clearly stated at the earnings meeting that BYD's full-year sales target for 2025 is 5.5 million vehicles, a 30% increase from last year's 4.27 million vehicles. Among these, the sales target for overseas markets is over 800,000 vehicles, nearly doubling compared to 2024.

This means that the demand for power batteries for supporting new energy vehicles will also grow significantly, and BYD must expand its production capacity.

In addition to supplying batteries for BYD's own new energy vehicles, the external supply scale of FinDreams Battery has increased significantly. By 2024, the external supply ratio of FinDreams Battery has risen from 15% to 35%, with customers covering well-known domestic and international automakers such as FAW, Changan, and Stellantis.

Currently, Fudi Battery's planned production capacity has exceeded 500GWh, and it has established manufacturing bases in multiple cities across the country, including Huizhou, Xining, Chongqing, Xi'an, Changsha, Guiyang, Changchun, Bengbu, Shengzhou, Yancheng, and Jinan.

At the beginning of 2025, the lithium battery industry has ushered in a wave of capacity expansion, with companies like Fudi Battery...Ningde Times（SZ:300750）、Eve Energy（SZ:300014）、China Innovation Airlines（HK:03931）、Ruipu Lanjun(HK:00666), Ganfeng Lithium,Sunwoda(ASX:300207) and other leading companies are expanding production密集. (Note: The stock code provided seems to be in Chinese notation for Shenzhen market, but was mistakenly given an ASX (Australian Securities Exchange) prefix in the translation request. If it's meant to refer to a Shenzhen listed company, it should ideally be referenced as SZ:300207. The term "密集" (dense/密集) at the end of the sentence doesn't fit well in English context regarding the expansion activity. A more fitting translation would exclude this word or replace it with appropriate context if missing in the original text.) For a precise translation maintaining the original structure: (SZ:300207) and other leading companies are密集 expanding production. However, considering readability and context, the best translation would be: Leading companies like (SZ:300207) are expanding production intensively.

According to CCTV Finance, since this year, the overall production scheduling of domestic lithium batteries has shown a warming trend. The top 20 battery manufacturers are expected to increase the combined production of power batteries and energy storage batteries by more than 60% year-on-year.