BYD is massively expanding its battery production capacity in China. An investment agreement has been signed with the municipal government of Fuzhou in China’s Jiangxi province to build a new factory to produce batteries for electric vehicles.
Under the agreement, BYD will invest eight billion yuan (about 1.11 billion euros) in a factory with an annual capacity of 15 GWh in the Fuzhou high-tech industrial development zone. In a second phase, an additional 15 GWh will be built. A decision on this has to be made “on the basis of market demand”.
Such an agreement had been in preparation for some time: Gasgou reports with reference to the commercial information platform Tianyancha, Fuzhou BYD Industry Co., Ltd. was already founded in September as a 100% subsidiary of BYD Auto Industry.
the Gasgou the article does not mention which cells are to be built in Fuzhou. However, BYD is best known for its LFP batteries, especially the so-called “Blade” battery with particularly large and sword-shaped cells. BYD introduced the ‘Blade’ battery in March 2020 and uses it in Han EV and Tang EV, among others. However, it was announced early on that the batteries would also be sold to third party customers. This would now include Tesla.
The new factory in Fuzhou is not BYD’s only new battery factory. Fudi Industry, BYD’s battery business unit, also established six subsidiaries this year in Chongqing, Wuwei, Yancheng, Jinan, Shaoxing and Chuzhou. Battery production capacities of 10 GWh, 30 GWh and 30 GWh per year must be built respectively in Wuwei, Yancheng and Jinan. In Chuzhou, the first phase will be 5 GWh.
Like the portal Seetao writes, BYD’s generation capacity is expected to reach 91 GWh by the end of 2021 – after 65 GWh by the end of 2020.