After the completion of the joint venture battery company with Ningde era, Dongfeng Automobile has another child in the power battery field.

Following the completion of the joint venture battery company with Ningde Times, Dongfeng Automobile has another child in the power battery field.

On July 9, Dongfeng Automobile(600006) announced that the company intends to increase its cash capital with 50 million yuan for Haibosi Innovation Energy Technology Co., Ltd.(hereinafter referred to as "Xiangyang Haiboshi Chuang"). After the capital increase is completed, the company will hold 50 % of its equity.

Dongfeng said the company's investment is aimed at the new energy car industry chain upstream link layout. The company's control over battery production resources will enhance the core competitiveness, quality control, battery cost control, and the development speed of new energy vehicles.

It is understood that Haibosi is mainly engaged in the development, engineering design and system integration of power battery systems. The company's core team consists of doctors from the world's top universities such as the University of California, Berkeley, Stanford University, and Virginia Tech.

With excellent battery system management and system assembly technology R&D strength, Xiangyang Haiboshi Chuang was incorporated into the supply chain system by Dongfeng Automobile in 2011. The follow-up was given supply recognition by leading brand car companies such as Zhongtong, Jinlong, Geely, and others. According to financial data, the total assets audited by the company in 2017 were 406,223,600 yuan and the net assets were 14,463,900 yuan.

After the capital increase was completed, Haibosi was renamed "Dongfeng Haibo(Xiangyang) New Energy Technology Co., Ltd.".

The layout of Dongfeng Automobile in the power battery field in recent years, its foresight and ambition for the core technology and core resources of new energy vehicles.

On July 4, 2018, Dongfeng Power Battery Co., Ltd., a joint venture between Dongfeng Automobile and Ningde Times, was completed and put into operation. It is understood that in 2019, the Dongfeng era will complete the construction of three production lines, and it is expected that by 2020, it will achieve an annual output of 192,000 power battery systems and 9.6 GWh.

In fact, in October 2017, Liuweidong, deputy general manager of Dongfeng Automobile Group, publicly stated: "Recently, we have a stake in the era of Ningde and are talking about a new battery company. The parts that match the vehicle, we have to do it ourselves. "

On January 3, 2018, Dongfeng Industrial Co., Ltd.(hereinafter referred to as "Dongfeng Industrial") and Tianjin Lishen Battery Co., Ltd.(hereinafter referred to as "Lishen Battery") signed the "Dongfeng Lishen Power Battery System Project Agreement."

According to the agreement, the contracting parties jointly invested in the establishment of "Dongfeng Lishen Power Battery System Co., Ltd." and the project settled in the Shiyan Economic and Technological Development Zone in Hubei Province. The project is mainly engaged in the production of power battery PACK, and the planned annual production capacity is 3GWh.

According to public information, Dongfeng Lishen was established by Lishen Battery, Dongfeng Industrial Co., Ltd. and Dongfeng(Shiyan) Samsung New Materials Co., Ltd., which invested 40 %, 33.33 % and 26.67 % respectively. The business scope includes battery modules, lithium-ion batteries, battery systems, assembly, processing, sales, leasing and related technical services, and maintenance services for supporting equipment and facilities related to charging and switching.

It is worth mentioning that Lishen Battery is the main supplier of power batteries for Dongfeng Automobile. In September 2017, Lishen Battery was appointed by Dongfeng Automobile as the only supplier of power batteries for the Eteit BBG project. The BBG Pure Electric Vehicle Project is the first pure electric vehicle project of the Eteater New Energy Automobile Co., Ltd., a new joint venture between Dongfeng Motor Co., Ltd. and Renault-Nissan. The total output is expected to be 300,000 units.

Industry insiders believe that Dongfeng Automobile's joint venture with Ningde Times and Lishen Battery is a strong joint venture, which can enhance and stabilize its market share for battery companies. For Dongfeng Automobile, it is to obtain higher quality and more cost-effective power batteries. As a guarantee, It is win-win cooperation.

This time, the capital increase, Xiangyang Haiboshi, to a certain extent, shows the strong control of Dongfeng Automobile to further improve the R&D and manufacturing capabilities of power battery technology, under the control of cost advantages, to lock in the future larger market as a cushion.

The page contains the contents of the machine translation.