China, Jan.18 – FAW Fudi New Energy Technology Co., Ltd. was established on Jan. 18, with Ruijia Wu as its legal representative and 10 billion RMB as registered capital. This company’s stocks are both held by BYD and FAW Group Corporation, where BYD took 51% and FAW49%.
Some Context – Hongjian Li, vice dean of FAW’s main research and development centre and dean of innovation technology research centre, will be FAW Fudi’s chairman. Long He, Fudi Battery’s chairman, will be FAW Fudi’s vice chairman.
FAW Fudi focuses on:
- Invention, production, and sale of automotive batteries and battery systems.
- Provision of related after-sale and technological counselling services.
- Promotion of new energy technology.
- Recycle of batteries
Why BYD is willing to cooperate with FAW?
- FAW is one of the earliest customers of BYD’s ‘blade battery’. The cooperation has started since FAW’s production of Redflag E-QM5.
- FAW has further announced that BYD’s blade battery will be matched with its electromotive middle-sized car E-QM5. BYD has been investing billions in Changchun’s automotive battery base, just to match the new car types of FAW.
- In July 2021, BYD and FAW signed a contract to better cooperate in the development of new energy automotive batteries.
- The establishment of FAW Fudi. is based on the numerous corporations BYD and FAW once had before.
Benefits for BYD of this cooperation
BYD has sold 603, 800 cars in 2021, where 584, 000 of them are new energy vehicles(NEV). The year-on-year growth has achieved 221.3%. There is a great demand for NEVs and thus batteries.
Currently, BYD is facing a tight supply of its ‘Blade Battery’. The ‘Blade Battery’ is one of the most important products of BYD. It has a different structure compared with traditional batteries. This enhances its volume use ratio and enables more cells to be installed in the same amount of space in a battery.
After the FAW Fudi finished building its factories, it could manufacture about 45 GWh automotive batteries per year, which is able to be matched with millions of vehicles. This will significantly ease the current issue.
The establishment of FAW Fudi signals BYD’s automotive program’s first attempt to enter China’s northeast market. According to professionals, the lithium battery production industry is currently concentrated in south and east China. Now, BYD’s market share might expand because of its new action.
Also, this new firm will provide FAW with considerable advantages in electromotive production.