• BYD wants to significantly increase car sales in 2023
• Apparently billions in investment planned in Zhengzhou
• Three new battery factories announced in China
BYD (Build Your Dreams) was able to more than triple its sales to 1.86 million vehicles last year. But the Tesla competitor is far from satisfied with that, and wants to sell up to 4 million cars this year. For this reason, the company, which has Warren Buffett on board as a prominent major investor, is now apparently planning to build another plant to produce battery systems for electric cars. The Shenzhen-based car manufacturer is not only one of the largest manufacturers of electric vehicles, but is also heavily involved in battery production – a major competitive advantage in times of scarce raw materials and preliminary products.
New China plant
As various media report, citing environmental protection documents, the BYD subsidiary FinDreams Technology wants to build a new plant in the Zhengzhou Airport Economy Zone. A factory for blade batteries with LFP cells is to be built on an area of 115 hectares.
This LFP battery developed by BYD is said to have a higher energy density and a lower risk of overheating due to its structure. This is achieved by building the cells directly into the battery pack instead of first grouping them into individual modules. BYD uses these blade batteries, whose very long cells are intended to resemble the blade of a sword (“blade”), in its own vehicles, but also sells them to third parties such as Tesla.
According to media reports, BYD will invest the equivalent of around 1.1 billion euros in this new battery factory with an annual production capacity of 40 GWh. There is currently no information on the schedule, but it can be assumed that the capacity of 40 GWh will only be reached in the final stage of construction of the plant, before that construction sections with less production capacity are likely to be put into operation.
Enormous capacity expansion at BYD
According to “electrive.net”, the new plant in Zhengzhou, the capital of Henan province, is the third battery factory that BYD has announced for China since November. New production facilities are planned in Xuzhou in the province of Jiangsu and in Wenzhou in the province of Zhejiang, which are designed for an annual output of 15 GWh and 20 GWh respectively.
So far, BYD’s strategy is to keep cell and battery manufacturing in China. But this is not surprising, after all, the group also sells most of its e-cars within the Middle Kingdom.
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