Great Power Has Been Approved by CSRC to Raise RMB 3.4 Billion for Energy Storage Battery Base – EQ Mag
Great Power, a Chinese battery supplier, announced on March 20 that it plans to raise RMB 3.4 billion to build a base for manufacturing energy storage batteries. According to the latest related information that EnergyTrend has received, the China Securities Regulatory Commission (CSRC) has approved Great Power’s application to launch a private placement that will raise the fund for the development of the base.
On January 10, Great Power disclosed that it will lower the amount of A-share stocks that will be sold to specific investors from RMB 4.5 billion to 3.4 billion (including the principal). Following the deduction of various related expenses, the net proceeds from this private placement is expected to be mostly invested in the development of a smart manufacturing base. The base is set to have a production capacity of 10GWh per year for energy storage batteries. Also, a portion of the net proceeds will be used to supplement working capital.
The construction of the base will be carried out in two phases, with an investment reaching the level RMB 3 billion. Each of the two phases will involve setting up a production capacity of 5GWh per year for Li-ion batteries for energy storage systems. The first phase is expected to take 16 months to complete, whereas the construction period for the second phase is projected to be much shorter, lasting for just one month. The base is set to locate in Quzhou, a city in China’s Zhejiang Province.
Great Power said the base will be mainly used to make Li-ion batteries and battery systems that will be sold to customers in the market for energy storage capacity.