FinDreams Technology, a battery subsidiary of BYD, has filed documents to set up a new battery manufacturing plant in central China. BYD has experienced rapid growth in the automotive industry over the past two years. Just last year, Ford tripled its annual car sales, with the majority of those sold in China.
New $1.2 billion battery plant for BYD
Now, as the company looks to expand outside of Asia, it is doubling its Chinese manufacturing capacity. Second Reuters, BYD will build a battery factory that produces 40 GWh of batteries annually. The center will be located in Zhengzhou, Henan Province, east-central China.
According to reports on the Chinese regional government website, the project will cost an estimate 8 billion yuan (1.2 billion dollars). However, the start date of construction has not been determined. Before construction can begin, the plan must be approved by the regional government.
The incoming model would generate “Blade” battery, found in Tesla Model 3 competitor BYD Seal and BYD Han sedans.Using LFP chemistry, BYD touts the battery as a cheaper, faster-charging and longer-lasting option than conventional NMC battery chemistries.
BYD’s new battery production follows a series of announcements that BYD will enter a number of international markets. More likely, Ford will be selling its Atto 3 EV SUV in Japan in the coming months, with several showrooms and charging points already lined up for construction. The Chinese automaker will also enter the South American market, selling its electric vehicles and PHEVs in countries such as Argentina and Brazil.
By producing more batteries in China, BYD will try to lower the costs of its affordable cars. Unlike Tesla or other Chinese brands like Li Auto, Xpeng and NIOBYD cars can cost up to half.
BYD’s automotive expansion has been dramatic, attracting the likes of Berkshire Hathaway, which has made billions for its initial investment. However, as more and more EV manufacturers enter the market, both in China and globally, BYD will face an uphill battle to regain its market dominance. With this new battery production facility it is definitely heading in the right direction.
It may interest you: BYD is increasingly targeting Europe: negotiations are ongoing for a well-known factory.