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. We have 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 plan of the joint venture company will reach 30GWh, which can have the capacity equivalent to 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.

According to the public information, SAIC Group 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., which are the times of Shanghai Automotive Power Battery Co., Ltd. and SAIC. Power Battery Systems 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.

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.

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. 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.

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."