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BYD And Changan Join Forces On 10GWh Battery Factory And Automotive R&D

BYD and Changan Automobile have spun up a joint venture to manufacture and sell electric vehicle batteries. This joint venture is based in the sprawling metropolis of Chongqing, China.

BYD and Changan Automobile have spun up a joint venture to manufacture and sell electric vehicle batteries. This joint venture is based in the sprawling metropolis of Chongqing, China.

The joint venture is focused on spooling up a battery production facility with a total production capacity of 10GWh, which is being split into two phases. The first phase will deliver the first 5–6GWh of production capacity and the second phase will deliver the remaining 4–5GWh of production capacity at the new Chongqing facility.

“This strategic agreement marks a significant milestone in the way BYD conducts its supply and marketing,” said BYD President and Chairman Wang Chuanfu. “Today’s announcement has implications for the company’s battery business and the long term development of the entire organization.”

The new joint venture is a part of BYD’s new strategy to accelerate its battery manufacturing business in support of the exponential growth it expects in the electric vehicle and stationary storage markets in the coming years. BYD has its roots in battery technology, having started off as a manufacturer of batteries for consumer electronics devices before moving into the automotive sector in a move that set the company up for the leadership sales position in plug-in vehicle sales that it enjoys today.

“This cooperation not only serves as a model of industry cooperation, it also sets a new benchmark for China’s smart car and new energy vehicle industry,” said President of Changan Automobile Zhu Huarong.
“We will pave the way for a revolution in the global automobile industry, one that is smarter and greener.”

Building on the new battery production facility, the two companies are combining forces to advance research into autonomous driving and a host of new energy vehicle technologies including plug-in vehicle battery recycling and fast charging technologies.

The two companies see the new Chongqing factory as the foundation from which to grow faster, including overseas. The speed at which the two companies are moving is difficult to comprehend, but the development of a knockdown factory, distribution channels, and services overseas before the first factory is even up and running highlights just how fast they are trying to move.

The question remains as to whether or not the new venture will help these two titans realize their dreams, but until then, all eyes are on Chongqing.


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Written By

I'm a tech geek passionately in search of actionable ways to reduce the negative impact my life has on the planet, save money and reduce stress. Live intentionally, make conscious decisions, love more, act responsibly, play. The more you know, the less you need. As an activist investor, Kyle owns long term holdings in Tesla, Lightning eMotors, Arcimoto, and SolarEdge.


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