BYD's layout: Fudi Battery is planning to build its first overseas battery factory

It is reported that BYD's subsidiary Fudi Battery Co., Ltd. is planning to build its first overseas battery factory, which will be mainly responsible for the production, packaging, storage and transportation of lithium-ion power batteries.

In recent years, the European new energy market has gradually expanded, and the demand for batteries has also doubled. In 2020, Europe sold 1.27 million new energy passenger cars, a year-on-year increase of more than 120%, surpassing China to become the world's largest new energy vehicle market. Therefore, as one of the world's largest battery manufacturers, BYD's layout of battery production in the European market has also attracted widespread attention in the industry.

People familiar with the matter said that the factory is being built to supply supporting products to European automobile customers and to prepare for the further expansion of BYD's overseas business.

It is learned that as early as the end of 2018, there were reports that BYD planned to build a battery production plant in Europe. On June 9 last year, people familiar with the matter also reported that BYD was negotiating with Jaguar Land Rover on the supply of power batteries. At the same time, BYD is expected to build its first European battery factory in the UK to directly supply batteries to Jaguar Land Rover.

Previously, Hyundai, Ford, Toyota and other well-known automakers have discussed blade battery cooperation with BYD, but BYD has not confirmed it. In addition to BYD, in 2019, CATL started construction of its first overseas factory in Thuringia, Germany.

As power battery companies in China, Japan and South Korea accelerate their layout, Europe may be one of the key factors affecting the global power battery installation rankings of power battery companies in the future.

It is worth mentioning that BYD plans to spin off its battery business and conduct another round of financing before its initial public offering, and has already contacted potential investors.