Geely plans to build a large battery factory in Jiangxi province, China. The company on social media said it would invest 30 billion yuan (nearly 4Bn euros). The factory in Ganzhou is designed to deliver electric vehicle batteries worth 42 GWh ultimately.
At least, this is what local media suggest quoting from Geely’s Chinese WeChat account. Plans see two construction phases under the guide of Geely’s new energy and aerospace arm, Geely Technology. Stage 1 apparently involves an investment of 8.5 billion yuan (€1.097 billion) with output to reach 12 GWh annually. Geely is expected to add the remaining 30GWh capacity in a second phase. The plant will ultimately cover around 667 square kilometres.
While the announcement appears detailed enough, an actual schedule is missing. It is also unclear whether Geely will manufacture battery cells or focus on assembly. Perhaps earlier news give a hint. In December 2020, Geely and Farasis Energy apparently agreed to invest in a lithium-ion battery joint venture jointly. The deal was to include research and development of cells as much as the manufacture and sales of entire modules, Gasgoo suggests.
Leaning further into the field of speculation – Farasis is a partner for Daimler as well, and Geely is holding shares in the latter. The new partnership could quieten rumours of trouble regarding the Daimler-Farasis supply deal. Media reports earlier this year had alleged quality problems and missing building permits. Both partners had denied the issues at the time.
What we do know is that Geely has made advances in the battery business. Their automobile holding entered into a joint venture with CATL last December. The parent company also has plans to integrate sales and marketing of electric vehicles into a new company called Lingling Technologies. The latter would be the task to increase sales of Geely own electric vehicles, which so far account for no more than 3% of sales according to Gasgoo.
Geely Auto had also tried recently to build on its European sister company’s strength in the Geely family, Volvo. After careful consideration, they decided against a proposed merger but agreed to share architecture and other components to be developed together.
“Geely Auto looks forward to partnering more closely with Volvo Cars, achieving significant synergies for our respective businesses,” An Conghui, president and CEO of Geely Auto, said at the time.
Volvo had announced in March to become an all-electric carmaker by 2030. Volvo Cars is 100% owned by Geely. Other parts of the Group include Geely Auto, Geely New Energy Commercial Vehicle, Geely Technology and Mitime. There are also brands such as Lynk & Co, Geometry, Polestar, London Electric Vehicle Company (LEVC), Farizon Auto, Proton and Lotus.
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