Accelerating capacity layout, EVE Energy's 50GWh power storage battery project settled in Chengdu

On the evening of October 29, Yiwei Lithium Energy disclosed an announcement that the company and the Chengdu Economic and Technological Development Zone Management Committee signed the "Yiwei Lithium Energy 50GWh Power Energy Storage Battery Project Strategic Cooperation Framework Agreement" on October 27, 2021. The two parties intend to give full play to their respective advantages and carry out good cooperation in the fields of lithium-ion battery production and research and development, and reached relevant agreements on the company's new acquisition of land in the area under the jurisdiction of the Chengdu Economic and Technological Development Zone Management Committee to build the "Yiwei Lithium Energy 50GWh Power Energy Storage Battery Project".

On the evening of October 27, Yiwei Lithium Energy released its third-quarter report for 2021, stating that the company achieved revenue of 4.887 billion yuan in the quarter, a year-on-year increase of 125.90%; net profit attributable to shareholders of the listed company was 721 million yuan, a year-on-year increase of 23.70%; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 704 million yuan, a year-on-year increase of 22.49%.

On the same day, Yiwei Lithium Energy also disclosed that it plans to establish a joint venture with Zhongke Electric, which subscribed 400 million yuan and holds 40% of the equity of the joint venture. The joint venture will focus on manufacturing negative electrode materials and give priority to supplying Yiwei Lithium Energy and its subsidiaries. The total planned investment of the project is 2.5 billion yuan, with an annual production capacity of 100,000 tons of negative electrode materials. It adopts a phased construction model, with a production capacity of 50,000 tons/year for the first and second phases respectively.

It is worth mentioning that Yiwei Lithium Energy recently stated in an interaction with investors that the company will focus on the layout of the upstream industrial chain this year. It has formed cooperation with relevant high-quality companies in the raw materials end such as positive electrodes, negative electrodes, diaphragms, electrolytes, and resources end such as nickel, cobalt, and lithium. The company has basically completed the layout of the entire industrial chain.

It is expected that the cooperative production capacity will be put into production gradually from the second half of next year to ensure the stability of the company's supply chain and reduce the impact of raw material price fluctuations on product costs.