On Feb 22, Different Chinese media reported BYD’s power battery factory in Changchun officially started construction, an investment of more than 10 billion RMB of which is a key project of Changchun Municipal Government. The agreement of building the new battery plant was signed last year. Changchun Municipal Government, China FAW Group, BYD in collaboration with the battery plant.
BYD’s big plan for batteries
The global epidemic has affected the supply chain of EVs. For example, a few days ago, Xpeng delayed the delivery of the Xpeng P5 because of the tight supply of batteries, causing dissatisfaction among most subscribers.
On the other hand, as the world focuses more and more on environmental protection issues, the demand for EVs is growing day by day. As the world leader in the electric bus industry, BYD cannot afford to have any supply chain instability.
And BYD has already started to lay the groundwork for the future in the last year, which is in the battery.
In fact, BYD does not only need batteries for its EV industry, but also exports its batteries to different manufacturers. But this time, it is the power battery, which is generally considered to be used in EVs. With China’s national policy to promote carbon neutrality and “dual carbon” goals, the demand for electric buses across China is bound to grow.
BYD’s overseas electric public transportation industry is also very strong, so BYD needs to be well prepared to produce batteries to fulfill the huge demand for electric buses in the future.
But this time, the power battery plant is cooperating with FAW Group in China, and FAW Group has very close cooperation with many foreign companies, and even opened joint venture companies such as Volkswagen FAW, Audi FAW, etc. But what will be the spark of this cooperation between traditional auto company FAW Group and modern battery supplier BYD?. Not much has been disclosed in this regard for the time being.