On October 10, EVE ENERGY disclosed a fund-raising announcement, intends to raise no more than 5 billion yuan, the production of cylindrical lithium iron phosphate storage power battery and 46 series of large cylindrical power batteries, for energy storage and passenger car field.
According to the plan, the sum of the existing capacity and the new released capacity will reach 210 GWh, and the capacity will be expanded by about 2 times in 2 years, EVE ENERGY also pointed out that the expansion is large.
From an industry perspective, the power battery market is still in a state of overcapacity, and EVE ENERGY's capacity utilisation rate is around 70%, not yet back to the level of previous years. However, this expansion of large cylindrical batteries have not been mass production, in addition to Tesla, there are no many host plants to actually use cylindrical batteries for the time being. Industry insiders said, theoretically cylindrical battery cost and production speed are better, but now there is no mass production, not necessarily stronger than some square batteries, is expected to be the synchronous development of cylindrical and square, the high-end is basically cylindrical.
Liu Jincheng, chairman of EVE ENERGY, has always been a loyal supporter of cylindrical batteries. 2022, he publicly stated that large cylindrical batteries will become the main power source direction for future high and medium-end vehicles. 2023, he publicly stated that EVE ENERGY will firmly take the route of large cylindrical and large lithium iron. As early as the end of 2022, EVE ENERGY threw out this financing plan, that is, the proposed fund-raising of not more than 5 billion yuan, all invested in 23 GWh cylindrical lithium iron phosphate energy storage power battery project, 21 GWh large cylindrical passenger car power battery project.
On 10 October 2024, EVE ENERGY made public the prospectus (filing), and this plan has finally made further progress. However, looking at the first half of this year by quarter, EVE ENERGY's capacity utilisation rate is in an up and down state. in 2021, 2022 and 2023, EVE ENERGY's capacity utilisation rate for lithium-ion batteries for power storage is 96.14%, 92.82% and 72.92%, respectively.
For the decline in production capacity, EVE ENERGY pointed out that, starting in 2023, the square lithium iron phosphate energy storage power battery projects have been put into production, and some production lines are still in the climbing stage, the year-on-year increase in production is lower than the year-on-year increase in production capacity, and at the same time, the first half of the year by the impact of fluctuations in the price of the upstream materials, the downstream of the part of the customer delayed pickup, so that the capacity utilisation rate in 2023 has declined. For the reason of this expansion, EVE ENERGY said that the project aims to further expand the production capacity of the main products to meet the growing demand of the downstream market.
EVE ENERGY is an early mass delivery of cylindrical batteries. Data from Guolian Securities shows that EVE ENERGY is the first company in China to achieve mass production and delivery of large cylindrical batteries, and as of 18 June 2024, it has completed the delivery of a total of 21,000 units, of which 13,000 units of vehicles have been running stably for more than 1,000 kilometres, with the longest mileage of 8,300 kilometres. The first half of 2024 will see the launch of the large cylindrical Omnicell battery, which is equipped with a 6C fast charging capability, with a range of 300 kilometres in 5 minutes. The range is 300 kilometres in 5 minutes. Under the continuous development of large cylindrical battery application scenarios, it is expected that EVE ENERGY's production capacity of large cylindrical battery is expected to maintain growth in 2024.
As of the end of 2023, EVE ENERGY Cylindrical Lithium Iron Phosphate Batteries are said to have achieved a total intended customer demand of approximately 88 GWh over the next five years. The total intended customer demand for ternary cylindrical batteries for the next five years is approximately 486 GWh, of which the intended customer demand corresponding to customers with batch supply or those who have already obtained a fixed point totals 188 GWh, and some customers in other intended customer demand are still in the process of validation. It is expected that the validation process for some of the new energy vehicle customers will be completed by 2024, while individual overseas customers are expected to complete the validation process by 2026. However, the final demand is still subject to formal orders and the indicative demand has no legal effect.
EVE ENERGY is one of the top 8 power battery manufacturers in the world, with a shipment volume of 13.1 GWh from January to August this year, a year-on-year increase of 39.4%, and a global market share of 2.6%. EVE ENERGY's product system is relatively rich, and it has multiple technology routes such as soft-packed ternary batteries, square ternary batteries, square Li-FePO4, cylindrical Li-FePO4 and ternary large cylindrical batteries, covering almost all kinds of sold battery shells and material systems. EVE ENERGY has a wide range of product systems, including soft pack ternary batteries, square ternary batteries, square lithium iron phosphate batteries, cylindrical lithium iron phosphate batteries and ternary large cylindrical batteries, covering almost all kinds of battery shells and material systems.
Source : https://mp.weixin.qq.com/s/qVr8O5RAgu5XcrinDVwUng
