GAC Aion, the new energy vehicle (NEV) sub-brand of GAC, has officially begun its power battery project’s construction, which marks one of the most high-profile moves by an automaker to battery manufacturing, according to CnEVPost.
GAC Aion’s project, located in Guangzhou, broke ground on December 11 with a planned RMB 10.9 billion ($1.57 billion) total investment, according to a press release.
The site owned by GAC Aion’s subsidiary, Yinpai Battery Technology Co., covers an area of around 666 mu (444,000 square meters) and is the largest energy storage and power battery manufacturing project in the region, noted the release.
The production site’s workshops are anticipated to be delivered in October next year, with the first production line with 6 GWh capacity to be completed by March 2024 and all 36 GWh to be completed by the end of 2025, says GAC Aion.
Furthermore, after the entire line is finished, the plant could meet the battery demands of 600,000 vehicles.
Production site’s annual output
The production site will have RMB 21 billion ($3 billion) annual output and will create 15,000 jobs in the region, with over RMB 180 billion ($25.7 billion) additional output.
In addition to battery development and production, the site would also have sales and service capabilities.
Neutron Star Strategy
GAC Aion announced its “Neutron Star Strategy” at the company’s Technology Day in April 2021, when it said it would carry out power batteries and cells research and development.
Silicon sponge negative cell technology
On April 9, 2021, GAC unveiled its silicon sponge negative cell technology, which it stated was a lighter and smaller cell technology that would improve power density, cell energy density, and low-temperature battery characteristics.
GAC’s team of power battery cell professionals
GAC added its research institute, formed a complete team of power battery cell professionals after ten years of planning and five years of research, and developed a technology that made the silicon cathode inside the battery as soft as a sponge.
GAC Aion’s investment in the battery pilot production line
Moreover, the group agreed to GAC Aion’s plan to invest RMB 336 million ($48 million) in a battery pilot production line on October 29, 2021.
The announcement says the purpose of the move is to boost in-house developed battery technology’s application, validate battery process maturity, product consistency and cost, and store up mass production process technology.
GAC Aion’s strategic cooperation with upstream raw material suppliers
On the other hand, GAC Aion initiated the construction of a battery R&D pilot line in 2022 and entered into strategic cooperation with upstream raw material suppliers, which includes Ganfeng Lithium and Nanjing Hanrui Cobalt Co.
By 2025, GAC Aion anticipates constructing up to 2,000 stations with charging and battery swap capabilities in 300 cities in China.
Half of GAC’s battery comes from CATL
In a speech at the 2022 World EV & ES Battery Conference on July 21, GAC Chairman Zeng Qinghong stated half of the automaker’s batteries come from CATL and that battery costs amount to 40 to 60% of NEVs.
Zeng said that he was actually working for CATL.
The next day, CATL chief scientist Wu Kai said at the event in July that the company wasn’t yet losing money. However, it was struggling on the edge of a slight profit.
Wu has suggested that upstream raw material suppliers took most of the profits.
