BYD’s new 28.5 billion layout in Jiangxi Province.

According to the news released by Yichun, on the afternoon of August 15, Yichun Municipal Government, Yichun Economic Development Zone, Yifeng County Government, Yichun Mining Company and BYD formally signed a strategic cooperation framework agreement in Nanchang.

 

According to the agreement, BYD plans to invest 28.5 billion yuan in Yichun to build a comprehensive development and utilization production base project with an annual output of 30GWh of power batteries and an annual output of 100,000 tons of battery-grade lithium carbonate and ceramic soil (including lithium).

BYD’s battery capacity layout


According to incomplete statistics, there are 15 BYD battery production bases with announced production capacity, namely Xining in Qinghai (24GWh), Huizhou (2GWh), Pingshan in Shenzhen (14GWh), Bishan in Chongqing (35GWh), Xi’an (30GWh), and Ningchang in Changsha. Township (20GWh), Guiyang, Guizhou (20GWh), Bengbu, Anhui (20GWh), Changchun, Jilin (45GWh), Wuwei, Anhui (20GWh), Jinan, Shandong (30GWh), Chuzhou, Anhui (5GWh), Sheyang, Yancheng (30GWh), Xiangyang, Hubei (30GWh), Jiangxi Fuzhou (15GWh), Guangxi Nanning (45GWh).


Now, another Yichun project (30GWh) has been added. In addition, BYD is also jointly building a 10GWh power battery capacity with Changan and a 45GWh power battery capacity with FAW.


Taken together, the total battery capacity disclosed by BYD has reached 470GWh. Of course, this does not include BYD’s unannounced new battery production bases.


The accelerated pace of production expansion reflects the “tightening” of BYD’s production capacity. In 2022, BYD’s sales will continue to hit a new high. From January to July, the cumulative sales volume of BYD’s new energy vehicles was 803,900 units, a year-on-year increase of 292%; the cumulative installed capacity of power batteries and energy storage batteries was approximately 41.329GWh.


Moreover, BYD has recently announced that it will enter the German, Swedish, and Thai markets, and officially launch overseas markets. It can be seen that the installed capacity of BYD’s power batteries will further increase rapidly.


However, in addition to supplying for its own use, BYD is also approaching many external car giants.


The latest news is that on August 10, a person familiar with the matter revealed that the blade battery supplied by BYD has been delivered to Tesla’s super factory in Berlin, Germany. According to teslamag.de, the Model Y with a BYD battery with a capacity of 55kWh and a cruising range of 440km has received EU type approval and is known as Type 005, internally referred to as “variant Y7CR”.


In addition, BYD has started supplying car companies including FAW Group’s Hongqi and Pentium models, equipped with blade batteries, with an order volume of about 15GWh, and shipments will begin in April 2021; and Ford Motor’s Mustang Mach-E, equipped with Ternary high nickel 811 battery.


Not only that, according to the incomplete summary, Ford, Toyota, PSA Group, Daimler Group, Dongfeng Group and other car companies will soon use BYD batteries. The specific information is as follows:


Ford: Ruiji PHEV and a new PHEV model, equipped with ternary batteries.


Toyota: At least six models, including pure electric and HEV, not limited to blade batteries.


PSA Group: At least three models, including pure electric, PHEV and 48V mild hybrid.


Daimler Group: Various models of the EQ series are equipped with ternary batteries and blade batteries.


Dongfeng Group: A variety of new energy models are equipped with ternary batteries and blade batteries.


BYD’s battery industry chain layout


In addition to battery production capacity, the construction of battery raw materials and the mining, selection and development of lithium ore cannot be ignored in this BYD Yichun project. This is also the key reason why BYD chose to settle in Yichun.


Yichun is known as the “Lithium Capital of Asia”. It has the world’s largest lepidolite mine, with lithium oxide reserves as high as 5 million tons of lithium carbonate production, and the recoverable lithium oxide volume accounts for 31% of the country and 12% of the world. Investing in Yichun BYD can facilitate the acquisition of upstream lithium resources and reduce production and transportation costs.


Yichun City is also making the city’s efforts to build the world’s largest lithium carbonate base, an important domestic cathode material base, the largest domestic anode material base, the largest domestic lithium battery base, an important domestic lithium battery application base, and a nationally well-known lithium product base. The trading center has formed a development model that runs through the whole industry chain of “lithium mine – lithium salt – lithium material – lithium battery – lithium application – lithium recovery”.


This time, BYD’s establishment in Yichun is also another global new energy leading company to settle in Yichun after Ningde Times and Guoxuan Hi-Tech.


Since the beginning of this year, BYD has accelerated the expansion of its lithium resources investment layout. Veken.com Lithium has made an inventory of BYD’s foreign investment in the lithium battery industry chain, as follows:


Lithium mine and lithium salt layout


1. Shengxin Lithium Energy: In March this year, BYD invested in Shengxin Lithium Energy (the investment amount is between 2 billion and 3 billion yuan), holding more than 5% of the latter’s shares, and the two parties agreed to establish a long-term strategic partnership . On May 18, BYD announced that the estimated amount of daily related transactions in 2022 for the company and its holding subsidiaries to purchase and commission lithium products from Shengxin Lithium Energy is 4 billion yuan.


According to relevant media statistics, Shengxin Lithium Energy owns 75% of Sichuan Yelonggou Lithium Mine, 75% of Sunhekou Lithium Polymetallic Mine, 25.19% of Sichuan Murong Lithium Mine, and 51% of Zimbabwe’s Sabixing Lithium-Tantalum Mine. , Argentina SDLA Salt Lake (operating rights), MtCattlin and Manono underwriting rights.


2. Salt Lake Co., Ltd.: On June 21, 2016, Salt Lake Co., Ltd. announced the establishment of a joint venture with BYD and Shenzhen Zhuoyucheng Investment Co., Ltd. to establish Qinghai Salt Lake BYD Resources Development Co., Ltd. (Salt Lake Co., Ltd. holds 49.5%, BYD holds 49%, Zhuo Yucheng Investment holds a 2.5% stake), and started the construction of a battery-grade lithium carbonate project with an annual output of 30,000 tons, with a total investment of 4.849 billion yuan. But 6 years later, so far the project has not produced lithium salt. In mid-May this year, Salt Lake shares disclosed the progress, saying that the project is still in the pilot stage and has not been officially launched.


Salt Lake shares hold a 51.42% stake in Lanke Lithium, which is a lithium extraction producer from the largest salt lake in China, Chaerhan Salt Lake (West Mining Area). As of the end of last year, Salt Lake’s lithium carbonate production capacity was 30,000 tons, and a total of 19,200 tons of lithium carbonate were sold that year.


3. Tibet Mining: In 2010, BYD took a stake in Tibet Zabuye Lithium, a holding subsidiary of Tibet Mining (holding 18%). Tibet Mining holds a 51% stake in Tibet Zabuye Salt Lake, the largest salt lake lithium mine in China. The current reserves are 1.84 million tons, and the annual production capacity of lithium carbonate concentrate is about 5,000 tons.


4. Rongjie shares: Lv Xiangyang, vice chairman and third largest shareholder of BYD, serves as the actual controller, chairman and president of Rongjie shares. Last year, Rongjie Co., Ltd. sold lithium salt products with a total amount of about 180 million yuan to BYD. Recently, Chengdu Rongjie Lithium Industry and BYD Supply Chain signed a lithium carbonate supply cooperation agreement.


Rongda Lithium, a subsidiary of Rongjie Co., Ltd., owns the overall mining rights of the world-class resource Meika No. 134 vein, and is the only large-scale mine producing spodumene that has entered the supply channel in China; its subsidiary Changhe Huali’s battery-grade carbonate The lithium production capacity is 3000 tons/year, and the lithium hydroxide production capacity is 1800 tons/year.


It is worth mentioning that in early June, it was reported that BYD had found 6 lithium mines in Africa, and all of them have reached acquisition intentions. In response, BYD declined to comment.


Cathode Material Layout


1. Hunan Yuneng: In December 2020, Hunan Yuneng increased its capital and shares and introduced its main customer BYD as a strategic investor. It is the seventh largest shareholder of the company, with a direct shareholding ratio of 5.27%.


Hunan Yuneng’s main products include lithium iron phosphate, ternary materials and other lithium-ion battery cathode materials. Currently, lithium iron phosphate is the main product, accounting for over 94% of revenue. In 2021, the market share of Hunan Yuneng LiFePO4 materials in China will be 25%, ranking first in the industry.


2. MCC New Energy: In September 2017, MCC Group joined Hefei Guoxuan, BYD and Caofeidian to develop and establish MCC Ramu New Energy Technology Co., Ltd., holding 51%, 30%, 10% and 9% of the shares respectively. In April this year, the four parties increased the capital of MCC New Energy, and the shareholding ratio of each shareholder remained unchanged.


MCC New Energy currently has an annual production capacity of 40,000 tons of ternary precursors (6 series precursor products) and 20 tons of high-purity scandium oxide. The domestic shipment of ternary precursors ranks sixth, and battery-grade sulfuric acid The domestic shipments of nickel ranked second, and the domestic shipments of scandium oxide ranked second.


3. Sichuan Road and Bridge: In October 2021, BYD strategically invested in Sichuan Road and Bridge with an investment of 200 million yuan. Sichuan New Lithium, a subsidiary of Sichuan Luqiao, has launched projects including cathode material projects and precursor projects, of which the cathode material project has been officially put into production in 2020.


Anode material layout: In June, BYD invested 100 million yuan in Griffin by way of cash contribution, and subscribed for Griffin to increase its registered capital by 15.6 million yuan.


Griffin is the operation platform of the carbon materials business segment of BYD supplier Dow Technology, and has built 40,000 tons of slurry and related supporting capacity.


Equipment layout: On June 23, 2017, BYD Lithium Battery, a wholly-owned subsidiary of BYD, participated in Dongguan Deruijing, a lithium battery equipment company, and subscribed for 6.5 million yuan and held 32.5% of the shares, making it the second largest shareholder. The largest shareholder is Rongjie, holding 55% of the shares.


Lithium battery copper foil layout: On February 23 this year, Tongbo Technology underwent an industrial and commercial change, adding a new shareholder, BYD, with a shareholding ratio of 3.11%, making it the seventh largest shareholder.


Lithium battery aluminum foil layout: On April 26, 2021, BYD and Hefei Guoxuan, Yiwei Lithium Energy and other companies jointly established North China Aluminum New Material Technology Co., Ltd. BYD’s shareholding ratio is 2.97%, making it the seventh largest shareholder.


Lithium battery solvent layout: On June 10 this year, Zhongrun Chemical underwent an industrial and commercial change, adding a number of shareholders such as BYD. BYD’s shareholding ratio is 2.54%, making it the seventh largest shareholder.


Zhongrun Chemical is a solvent material NMP (N-methylpyrrolidone) manufacturer. In the production materials of lithium batteries, NMP is used as a positive electrode coating solvent and as a lithium battery conductive agent slurry solvent, which is an indispensable solvent material.