Geely Technology Group, a subsidiary of Zhejiang Geely Holding Group and an affiliate of Geely Auto, has inked an agreement to set up an EV power battery production site in China’s Anhui Province.
The production site is located in Ningguo, a county-level city within the province. Furthermore, the site will comprise production lines for manufacturing LFP EV power batteries and supporting facilities. The production capacity of the site is set at 12GWh per year. The agreement signing ceremony was held in Ningguo on November 5.
Zhejiang Geely Holding Group is touted to be one of the world’s top 500 companies. As for its subsidiary Geely Technology Group, its core businesses include new material technologies, new energy technologies, and interestingly, motorcycle touring. It has also made strategic investments in low-altitude air transport, commercial air transport, startup incubation, etc.
Despite the diversity of its portfolio, the largest portion of Geely Technology Group’s resources is devoted to to the development, manufacturing, and sales of EV batteries. The company has adopted both ternary battery and LFP battery as its technology paths. Moreover, it is also pursuing vertical integration. The company’s existing competitive advantages are a strong position to synergize with the entire industry chain, an advanced R&D capability, a wealth of industry-related expertise, and a large market that is made possible with the efforts from its parent and affiliates.
In 2020, Geely Technology Group established a subsidiary in Ningguo for dissembling decommissioned vehicles and recycling automotive parts. At that time, Geely Technology Group also began formulating a plan to further develop the city in the aspects of digitalization, adoption of new technologies, and circular economy. Hence, the latest agreement for an EV battery production site is another step forward in the cooperation between Geely and the government of Ningguo. Together, they will pursue the high-quality development of a local circular economy that runs on new energy and green technologies.
Geely Technology Group has been accelerating its capacity expansion efforts this year. Besides the production site in Nigguo, the company is also in the process of developing two more manufacturing projects that are respectively located in the Tonglu Economic Development Zone, Zhejiang Province, and Chongqing (i.e., the city’s Fuling District or Fuling New Area), Sichuan Province.
On May 7, Geely Technology Group signed an investment cooperation agreement with the government of Tonglu County so as to set up an EV power battery production site in the local economic development zone. Occupying an area of around 450 mu, the Tonglu site is set to have a production capacity of 12GWh per year and will serve as the core of a local EV industry cluster. The construction of the facilities in the Tonglu site formally commenced on August 1.
Also, on May 19, Geely Technology Group and battery manufacturer Farasis Energy sealed a deal to jointly set up the Chongqing site. Like the Ningguo and Tonglu sites, the Chongqing site is set to have 12GWh per year. The total area of the Chongqing site is around 480 mu, of which 310,000 square meters will be allocated to facility buildings. Products that will be manufactured at the Chongqing site include battery cells, battery modules, and battery packs. The site will also serve as a R&D center and a sales office.