On March 20, EVE Energy announced plans to issue convertible corporate bonds totaling RMB 5 billion on March 24. According to the company’s prospectus, the funds raised will be used to implement the "23GWh Cylindrical LFP Energy Storage and Power Battery Project" and the "21GWh Large Cylindrical Passenger Vehicle Power Battery Project."
Once completed, the 23GWh Cylindrical LFP Energy Storage and Power Battery Project will be mainly applied in passenger vehicles and residential energy storage. Meanwhile, the 21GWh Large Cylindrical Passenger Vehicle Power Battery Project will focus on producing 46-series large cylindrical batteries, primarily for passenger vehicles.
As one of the earliest companies in China to invest in large cylindrical battery technology, EVE Energy has already secured massive orders. As of September 2024, the company revealed that its cylindrical LFP batteries have received a total of approximately 81GWh in customer demand orders over the next five years, while its ternary large cylindrical batteries have secured approximately 483GWh in customer demand orders over the same period.
Currently, EVE Energy has multiple ongoing and planned energy storage power battery projects, with capacity set to be released in phases. Based on capacity estimates at the end of 2023, the company’s existing capacity stands at 84GWh. By 2025, the capacity from newly commissioned projects is expected to reach 126GWh, bringing the total to 210GWh. By 2027, the total capacity is projected to reach 328GWh.
EVE Energy stated, “All of our expansion projects are built in response to downstream customer demand. Our capacity planning and construction progress align closely with customer needs.”
Both projects financed by this bond issuance focus on cylindrical batteries. EVE Energy previously stated that "based on our experience, cylindrical batteries can achieve a very high yield rate." The company’s small cylindrical battery production lines have reached a 98% yield rate, while large cylindrical battery lines achieve over 90%. The company has completed technical and production preparations for large cylindrical batteries, with the next goal being to scale up sales.
Compared to traditional cylindrical batteries, large cylindrical batteries offer significant performance advantages. Structurally, they maintain excellent stability throughout their lifecycle without expansion, ensuring higher safety. Additionally, their all-tab design reduces internal resistance.
Currently, 46-series large cylindrical batteries are gaining traction among global automakers due to their safety advantages and lower manufacturing costs. They are increasingly recognized by leading international car manufacturers, positioning themselves as a key development direction for next-generation battery technology. Automakers such as Tesla, BMW, Daimler, Volkswagen, General Motors, Volvo, Porsche, NIO, JAC Motors, and Dongfeng Voyah are actively investing in large cylindrical battery technology.
Industry analysts are optimistic about the future of large cylindrical batteries. It is estimated that by 2025, the global installed capacity of 46-series large cylindrical batteries could reach 255GWh. According to Huatai Securities, global large cylindrical battery installations could reach 429GWh by 2027, corresponding to a total market size exceeding RMB 200 billion.
EVE Energy disclosed that of the 483GWh in ternary large cylindrical battery demand orders, 187GWh corresponds to customers who have either already received mass deliveries or secured supply agreements, while some remaining orders are still under verification. "46-series ternary large cylindrical batteries offer high energy density, high production efficiency, strong safety performance, and excellent mechanical stability. Due to their higher module efficiency and simplified BMS management, they provide cost advantages. Some vehicle models have already entered mass production, and full-process validation by some downstream NEV manufacturers is expected to be completed between 2025 and 2026," the company stated.
Source：https://mp.weixin.qq.com/s/pDPX2YW2rA9HcoCIx8Rqyw