1.5 billion power battery parts production base settled in Huaibei

According to the signing agreement, Guoxuan Holdings will invest in the construction of a new energy vehicle power battery component production base project in the Huaibei Economic Development Zone, which mainly includes the research and development, production and sales of new energy power battery components. The project is expected to have a total investment of 1.5 billion yuan, with an annual output value of about 2 billion yuan and annual tax revenue of about 100 million yuan.

Huang Xiaowu, Secretary of the Huaibei Municipal Party Committee and Director of the Standing Committee of the Municipal People’s Congress, pointed out that Huaibei is currently accelerating the pace of industrial transformation and is committed to building a strategic emerging industry of “three bases, one technology and one big”. There is still much room for cooperation with Guoxuan Holding Group Co., Ltd. It is hoped that both parties will take this signing as an opportunity to further strengthen contacts and close cooperation, and promote the win-win development of both parties.

Li Zhen, chairman of Guoxuan Holding Group Co., Ltd., said that Huaibei insists on innovation, coordination, green, open and shared development, and strives to create three “green mountains” of natural ecology, economic ecology and political ecology, and the investment environment is very superior. Guoxuan Holding Group Co., Ltd. will go all out to support the transformation and development of Huaibei, and actively achieve broader cooperation fields, more pragmatic cooperation measures, and more prominent cooperation effects.

At present, Guoxuan Hi-Tech (002074) is expected to produce 6.5GWh of power batteries in its existing production line in 2018, of which the Sanyuan 622 production line is 5GWh. It is estimated that the maximum output in 2018 will reach 8-9GWh of power batteries. The specific output will be arranged according to market demand. The company’s overall production capacity will reach approximately 13-14GWh at the end of this year.

Yang Xulai, deputy dean of Guoxuan High-tech Engineering Research Institute, said that at different time nodes, battery companies have different focus on needs. At this stage, Guoxuan will not expand its production significantly as it did in previous years. The main tone of 2018 is to “enhance quality and shrink quantity”, focusing on product quality.