Eve Energy Co., Ltd. plans to invest no more than RMB 3.277 billion in constructing energy storage and consumer battery manufacturing projects in Malaysia. According to industry insiders, clients do require mandatory requests for overseas factories, which cannot be avoided through localization. Overseas manufacturing is an inevitable trend for those who want to expand their overseas markets.
When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.
It is not enough for energy storage products to go overseas, Eve Energy Co., Ltd. (300014.SZ) has invested 3 billion yuan in offshore production capacity.
Eve Energy Co., Ltd. announced today that its wholly-owned subsidiary, Eve Energy Malaysia Sdn. Bhd., is investing in the construction of energy storage and consumer battery manufacturing projects using its own and self-raised funds, with an investment amount of no more than 3.277 billion yuan. The planned construction site covers an area of about 0.22 million square meters, with a construction period of no more than 2.5 years, subject to actual construction conditions.
Eve Energy Co., Ltd. mentioned in the announcement that this investment is in line with the company's development strategy and long-term planning, and will further promote the smooth progress of the company's overseas business, and help to expand the production capacity of square lithium-ion batteries and cylindrical lithium-ion batteries.
Eve Energy Co., Ltd. has designated Malaysia as the first stop of its global strategic layout in 2022. It has previously invested in the local construction of a cylindrical lithium battery manufacturing base, with an investment of no more than 0.422 billion US dollars. The products are mainly used to support local and Southeast Asian electric two-wheeler and electric tool manufacturing companies.
According to Eve Energy Co., Ltd.'s official WeChat account, the construction of the Malaysian factory is progressing smoothly and the main project has been completed. It has obtained a manufacturing license for cylindrical lithium-ion batteries and is expected to be completed and officially put into production by the end of this year.
In the domestic market, the competition in the energy storage industry is also fierce. Today, the price of 4-hour energy storage systems has officially dropped below 0.5 yuan/Wh. According to energy storage and power market information, China Railway Rolling Stock Corporation's Zhuzhou Electric Locomotive Co., Ltd. is the preferred bidder for the energy storage system equipment procurement of the 300MW/1200MWh 'Wind and Solar Power Plus Hydrogen Integrated' energy storage power station project in Ulanqab, Inner Mongolia. It is priced at 0.495 yuan/Wh for a 1.2GWh energy storage system procurement.
The focus of energy storage companies' business is also shifting overseas, but Eve Energy Co., Ltd. may be ahead of the game in building battery cell factories overseas. It established a Malaysian energy storage company in January of this year and began to build an energy storage factory.
Regarding the reasons for building factories overseas, some people in the energy storage industry analyzed to Caixin reporters that: one is that some customers will require local support, which is also a support for the company's overseas business growth; Second, in terms of the entire supporting contact with customers, local factory construction and supply will be more convenient.
The above-mentioned person also mentioned that under the policy of the manufacturing industry's flow back to Europe and North America, some customers have also made mandatory requests to build factories overseas, and localization cannot be avoided. If you want to expand overseas, building factories overseas is also an inevitable trend.
It is worth noting that the shipment volume of Eve Energy Co., Ltd.'s energy storage batteries has exceeded that of power batteries. In the first quarter of this year, the company's energy storage battery shipment volume was 7.02 GWh, an increase of 113.11% year-on-year; as for power batteries, the shipment volume was 6.45 GWh, an increase of 5.98% year-on-year. According to the annual report data, in 2023, the company's energy storage battery shipments were 26.29 GWh, and power battery shipments were 28.08 GWh.