SAIC Motor will establish two new joint ventures through its wholly-owned subsidiaries-SAIC Group Investment Management Co., Ltd. and Ningde Times New Energy Technology Co., Ltd., namely Times SAIC Power Lithium-ion Battery Co., Ltd. and SAIC Times Power Lithium-ion Battery System Co., Ltd.
SAIC previously predicted that my country's new energy vehicle market will usher in an explosive rise, so it has launched a rapid deployment in the field of new energy. Netcom learned from SAIC that the car company will establish two new joint ventures with CATL through its wholly-owned subsidiary, which will be mainly engaged in the development, production and sales of lithium-ion batteries.
According to insiders of SAIC Group, the total planned scale of the joint venture will reach 30GWh, which can have a production capacity equivalent to 600,000 pure electric Roewe ERX5 batteries. According to SAIC's plan, the sales of new energy vehicles will reach 600,000 in 2020, and the new power lithium-ion battery project will undoubtedly provide more sufficient power guarantee.
According to public information, SAIC Motor will establish two new joint ventures through its wholly-owned subsidiaries-SAIC Motor Investment Management Co., Ltd. and Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as "Ningde Times"), namely Times SAIC Power Lithium Ion Battery Co., Ltd. and SAIC Times Power Lithium Ion Battery System Co., Ltd.
In addition to supplying SAIC’s own brand products, the products of the joint venture between SAIC and CATL will also enter the procurement system of SAIC’s joint ventures. This means that, including SAIC’s own brands and SAIC’s joint ventures, both SAIC and CATL will be used. The joint venture company purchases power lithium-ion batteries.
Among them, Times SAIC Power Lithium-ion Battery Co., Ltd. has a registered capital of RMB 2 billion. SAIC intends to hold 49% of the shares and CATL plans to hold 51%. 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 Times Power Lithium-ion Battery System Co., Ltd. is RMB 300 million. SAIC intends to hold 51% of the shares, and CATL plans to hold 49%. The company will be mainly engaged in the development, production and sales of power lithium-ion battery modules and systems.
At the same time, the joint venture between SAIC and CATL is open: the two joint venture companies can become suppliers outside of SAIC’s system; the joint venture between the two parties is not exclusive. SAIC’s joint venture with CATL also has a joint venture with Wanxiang Group. Jiexin Power Lithium-ion Battery System Co., Ltd., and CATL can also look for other partners.
According to people familiar with the matter, the total planned scale of the joint venture will reach 30GWh, and it will have the capacity to produce 600,000 pure electric Roewe ERX5 vehicles or 3 million plug-in hybrid batteries.
For reference, BYD’s 2016 lithium-ion battery shipments were about 8Gwh, all of which were lithium iron phosphate batteries. The senior executives of its power lithium-ion battery division revealed that the company is expanding its Kengzi base with an additional output of 6GWh, which is expected to reach production in 2017; in addition, in its long-term plan, its battery output is expected to reach 34GWh by 2020. From the perspective of the global market, the electric vehicle industry leader Tesla's new Gigafactory production is expected to be 35GWh (approximately 500,000 electric gas vehicles), and it is planned to reach full production in 2020.
Now, through the joint venture and cooperation of a number of power lithium-ion battery companies, SAIC Motor's overall output of power lithium-ion batteries is expected to surpass that of BYD, Tesla and other companies in 2020.
In addition to the cooperation project with CATL, SAIC also previously jointly established Shanghai Jiexin Power Lithium-ion Battery System Co., Ltd. (hereinafter referred to as "Jiexin Power") with A123 Systems Hong Kong Co., Ltd., as the US A123 was approved in 2013. With the acquisition of Wanxiang Group, Jiexin Power has become a joint venture between SAIC and Wanxiang. In the joint venture, SAIC holds 51% of the shares.
Jiexin Power mainly supplies lithium-ion battery systems for the Roewe E50 pure electric vehicles, e550 and eRX5 plug-in hybrid models of SAIC Motor Passenger Vehicle Branch. Starting from the eRX5, CATL has supplied batteries for SAIC Group’s new energy vehicles. The Roewe e950 currently uses batteries from CATL. Now the cooperation between the two parties has been further deepened.
Among SAIC's sales target of 600,000 new energy vehicles by 2020, self-owned brand models will account for 200,000 vehicles. Wang Xiaoqiu, Vice President of SAIC Group and General Manager of SAIC Passenger Vehicle Company, previously stated: “The development direction of new energy vehicles cannot be changed. SAIC’s independent passenger vehicles will launch a plug-in hybrid model in the second half of this year. Roewe also has plans to launch 1 pure electric and 2 plug-in hybrid models. MG will also launch new energy models. As a whole, nearly 8 new energy products will be launched on the market."
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