BYD entered a strategic cooperation agreement with Changan Automobile to jointly manufacture batteries for electric vehicles. Both companies will produce up to 10 GWh of batteries together and sell as well as recycle those through a wide reaching joint venture based in Chongqing.
BYD and Changan plan for the total battery production capacity of 10GWh to be reached over two phases. The first stage will amount to 5-6GWh and the second stage to the remaining 4-5GWh.
In addition, both companies intend to jointly research autonomous driving and a wide range of new energy vehicle technology. This includes the recycling of electric vehicle batteries, fast charging technology, and other future battery technologies. They also plan to improve on supply chain and car assembly techniques.
Particularly the will to jointly recycle batteries makes sense in light of China’s plans to force vehicle manufacturers to take a more active role in battery recycling. As of August, the Traceability Management Platform will go into operation to help oversee and manage the process (we reported).