GAC to start independent battery company project at the end of the year

On August 25, GAC Group announced two important proposals. One was to agree to set up an independent battery company to carry out the industrialization of independent batteries. The total investment of the project is 10.9 billion yuan, and the holding subsidiary GAC Aion, the wholly-owned subsidiary GAC Passenger Vehicle and GAC Trading hold 51%, 40% and 9% of the shares respectively. At the same time, it also passed the "Proposal on the Construction of a Battery Production Base by Juwan Technology Research", agreeing to the construction of a battery production base project by the equity-holding company Guangzhou Juwan Technology Research Co., Ltd. to mass-produce the cells, modules and PACK systems of ultra-fast charging power batteries, with a total investment of 3.69 billion yuan.

The first product of the independent battery company adopts GAC's independent lithium iron phosphate technology, which greatly improves the safety of the entire battery pack, while reducing the number of parts and costs through structural optimization. According to the plan, the independent battery factory will start construction at the end of this year, and a 26.8GWh mass production line will be built by 2025. In the early stage, it will mainly support Aion and GAC Group companies to steadily increase its battery market share. Later, it will actively expand external markets and carry out market-oriented operations.

The Juwan Technology Research Battery Production Base project will build new battery cell production workshops, PACK workshops, R&D test centers, trial production workshops, battery safety laboratories, etc., to produce battery cells, modules, PACK systems and other products covering advanced energy storage devices such as XFC (eXtreme Fast Charging) ultra-fast charging power batteries.

In 2021, GAC Group launched three original battery technologies: sponge silicon negative electrode battery technology, super fast charging technology, and magazine battery system safety technology, which solved the three major pain points of battery life, charging, and safety for users. This year, it also released a breakthrough composite battery technology-a new generation of super-energy iron-lithium battery technology based on microcrystalline technology, which provides a new direction for power battery solutions. In addition, GAC Group has currently established an advanced, close-to-mass production battery laboratory and battery test and trial production line, and has established a battery-related R&D technical team with the ability to industrialize batteries.

Batteries are key core components of new energy vehicles, and mastering battery technology is an important factor in distinguishing the core competitiveness of enterprises. With the establishment of an independent battery company and the implementation of the two major projects of the Juwan Technology Research Battery Production Base, GAC Group will accelerate the realization of the "three-pronged approach" of outsourcing, joint venture production, and self-research and self-production in the supply of power batteries, effectively ensuring the stability of the battery supply chain, further reducing the procurement cost of core components, improving profitability, and promoting the long-term development of GAC's new energy vehicle business.