Entering 2022, the pace of capacity expansion of power battery companies has not stopped. The full demand for downstream orders has stimulated battery factories to continue to promote the signing of new projects, and the pace of industry expansion has entered a new climax. Leading companies such as BYD have recently launched tens of billions of battery projects.

Recently, the People's Government of Qingxiu District, Nanning City, Guangxi announced the announcement of "Recording Projects handled by Qingxiu District Development and Reform Bureau in March 2022". The announcement shows that BYD's Guangxi Fudi annual power battery and energy storage system project with an annual output of 45GWh is planned to be located in Lingli Industrial Park, Qingxiu District, Nanning City. , used for R&D, production and manufacturing of core products such as power battery cells, modules and related accessories, battery cascade utilization and energy storage projects. It is planned to build mixing, coating, assembly, liquid injection, testing, and pack workshops. A factory building of about 750,000 square meters was built.

According to the project promotion process, BYD's successive landing of batteries and car sales companies in Nanning is likely to meet the needs of project production and promote the pace of battery base construction.

This project is also implemented by BYD and Nanning City. The project construction unit is Nanning Zhiwei Power Battery Technology Co., Ltd., which is wholly-owned by Nanning Industrial Investment New Energy Vehicle Investment Co., Ltd., which is the actual holding company of the Nanning Municipal Government.

From the perspective of the expansion process, the speed of BYD's power battery project in 2022 is not surprising. In addition to the 14 billion battery production base in Nanning, since 2022, BYD has successively signed four new battery projects.

On April 3, BYD's new energy blade battery project with an annual output of 22GWh settled in Xianju, which is one of the largest manufacturing projects in Taizhou in recent years. On April 1, BYD signed an investment cooperation agreement with Guiyang City. The two parties will carry out in-depth cooperation in new power battery industry projects, PACK factory production lines, etc. The specific production capacity and other information have not been announced yet. On March 31, the second phase project of BYD Power Battery Yancheng Base was signed in Yancheng. According to the previous disclosure, the annual production capacity will reach 15GWh. In addition to the newly signed battery projects, BYD's Xiangyang battery project with an investment of 10 billion yuan and an annual production capacity of 30GWh started on February 27, and the Changchun battery project with an investment of nearly 10 billion yuan started on February 22.

This means that since the beginning of the year, BYD has added more than 112GWh of new production capacity through the six newly signed and started projects. At present, BYD's planned battery production capacity has exceeded 400GWh, and it is expected that the actual production capacity of BYD's power batteries may exceed 70GWh this year.

Behind the rapid expansion of production is the full demand for orders from power battery companies, which is the start of a new round of competition. The latest data shows that in the first quarter, BYD's domestic power battery installed capacity was 10.41GWh, with a market share of 20.31%. In March, BYD's market share fell below 20%, reaching 19.24%. The second echelon, such as China Innovation Airlines and Guoxuan, is catching up fiercely, and the installed capacity and market share have increased. The follow-up capacity supply is one of the key elements of competition.

In addition, BYD's "urgency" in production capacity construction also confirms the smoothness of its external battery supply to a certain extent. Editor/Sang Xiaomei