The Beijing battery factory of Ningde Times (300750.SZ) officially announced that the lithium battery leader will invest in the project together with BAIC Group and Xiaomi Automobile.

Baic Blue Valley (600733.SH) released an announcement on the evening of March 8, revealing the latest progress of Ningde Times Beijing battery factory.

Ningde Times, BAIC Hailan Core, Jingneng Technology and Xiaomi Automobile will set up a joint venture to invest in the construction of a battery plant in Beijing. The battery adopts the assembly mode of cell - module - battery pack, and the battery cell is the smallest unit composed of the battery pack.

The joint venture intends to be named Beijing Times New Energy Technology Co., LTD. (hereinafter referred to as Beijing Times), with a registered capital of 1 billion yuan, and its business scope mainly includes the development, production and sales of power batteries and energy storage batteries.

Ningde Times will hold 51 per cent of the joint venture, BAIC Hailanxin 39 per cent, Jingneng Technology and Mi Automobile 5 per cent each. Baic Blue Core is a joint venture between three BAIC Group companies, including BAIC Blue Valley. Jingneng Technology is owned by Beijing Energy Group.

Ningde Times has previously laid out 11 production bases in China, which are located in Fujian, Jiangsu, Qinghai, Sichuan and other places. Up to now, Ningde Times has not disclosed the relevant information of the Beijing factory project.

News of Ningde Times' plan to build a new Beijing factory first came out in January this year.

According to Beijing Daily, on January 11, the Beijing Municipal Development and Reform Commission announced a series of policy measures to promote economic development in the first quarter, including the "plan to start construction of the Ningde Times Beijing factory project this year." Ningde Times did not respond to the news at the time.

The "2024 Municipal Government Work Report Key Task List" issued by the Beijing Municipal Government in February this year also includes the construction of the first phase of the Ningde Times battery Factory project.

The joint venture of the Beijing battery factory, Xiaomi Automobile and BAIC Group, are power battery customers in the Ningde era.

Xiaomi released its first model late last year, the SU7, which will run on the Ningde era Kirin battery and has yet to be officially launched. Ningde Times released the Kirin battery in 2022, which uses a modular battery structure. Its technical highlight is to skip the module and directly integrate the battery cell into the battery pack, so that the overall energy density of the battery pack can be increased, thereby improving the driving range.

Baic Group's BAIC EU5 model is also equipped with power batteries from the Ningde era. However, according to the statistics of Gaogong lithium Battery, BAIC Group is not currently the head customer of Ningde era. Last year, the top three car companies in terms of domestic supply were Tesla, Geely Automobile and Ideal Automobile.

The establishment of joint ventures with car companies is an important means for battery companies to deeply bind with downstream customers. Before joining forces with BAIC Group and Xiaomi Automobile, Ningde Times has established joint ventures with auto companies such as FAW Group, SAIC Motor, GAC Group and Geely Automobile to jointly establish battery factories. Ningde Times has a 51% stake in each of the joint ventures.

The business of Ningde Times includes four major sectors: power batteries, energy storage batteries, battery materials, recycling and battery mineral resources. In the first half of last year, the power battery segment contributed 73 percent of the company's revenue.

According to the power battery statistics released by SNE Research, the whole year of last year, the load of Ningde era power batteries reached 259.7 GWh, and the global market share was 36.8%, an increase of 0.6 percentage points from 2022, ranking first for the seventh consecutive year.

Last year, CatL was the only company in the world to load more than 200 GWh of vehicles. If each new energy vehicle is equipped with 50 KWh of electricity (50 KWH of electricity), the loading capacity of Ningde era power batteries last year can support more than 5 million new energy vehicles.

According to the performance forecast disclosed by Ningde Times in January, the net profit in 2023 is expected to be 42.5 billion to 45.5 billion yuan, an increase of 38.31% to 48.07%. This is the first time its annual net profit has exceeded 40 billion yuan, and the company has not yet released full-year revenue figures.

Ningde times said that the power battery and energy storage industry continued to grow, with its new technologies, new products have landed, overseas market expansion accelerated, and customer cooperation deepened, the company's production and sales growth.

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