Gotion High-tech, a leading manufacturer of power batteries in China, intends to increase its manufacturing capacity by investing a total of RMB 11.5 billion ($1.6 billion) in two new battery projects.
Investment in Xinzhan High-Tech Industrial Development Zone
CnEVPost reported that the Volkswagen-backed company intends to invest RMB 6.7 billion in the Xinzhan High-Tech Industrial Development Zone in Hefei, Anhui Province. This sum of money is aimed at constructing a 20 GWh annual capacity.
In order to generate power battery cells, modules, packs, and battery systems, the said project claims to incorporate a ternary li-ion power battery manufacturing line and supporting systems.
Gotion estimates that it will take the project 16 months to finish the construction and begin production. Furthermore, the company claimed that this investment would allow it to take advantage of growth prospects in the power battery industry. Consequently, it will increase the scale of its production capacity for ternary batteries.
Investment in Liuzhou, Guangxi
Gotion announced that another power lithium battery production facility would be built in Liuzhou, Guangxi. It is expected to have a 10 GWh annual capacity.
According to the company, the facility will comprise a production line for lithium iron phosphate batteries and auxiliary systems to create power battery cells, modules, packs, and battery systems.
Gotion is dedicated to becoming a major supplier of lithium batteries on a global scale. With that in mind, this investment is intended to increase the company’s production capacity and boost its position in the southern Chinese market for power batteries.
As for the production schedule, it is expected to begin 13 months after the construction.
Gotion’s position in the Chinese battery market
According to the China Automotive Battery Innovation Alliance (CABIA), Gotion is one of China’s top manufacturers of power batteries, placing fourth in September with a 4.33% market share.
Gotion was among the first domestic companies to conduct its independent research and development and produce li-ion-powered electric vehicles. As per China Edge, lithium-ion batteries, battery management systems, and energy storage battery packs are some of its key offerings.
According to Gotion’s website, the company’s motivation is “A simple thought really. In the near future, clean energy will be the main driver fueling many aspects of our daily lives. We want to be a part of that transition and journey.”