The project, located in Chengdu, Sichuan province, will include a 50 GWh per year power and energy storage battery production site, as well as a local research institute.

(Image credit: Eve Energy)

Chinese lithium battery supplier Eve Energy (SHE: 300014) plans to sign an agreement with Chengdu city in southwestern Sichuan province to build a 50 GWh per year power and energy storage battery production base there, as well as a local research institute, it said in an announcement on the Shenzhen Stock Exchange on Wednesday.

The project will be built in two phases, with the first phase containing a 20 GWh power battery and energy storage battery production base and the first phase of the research institute. The second phase of the project contains a 30 GWh power battery and energy storage battery production base and the second phase of the institute.

The total investment of the project is RMB 20 billion ($3 billion), of which each phase is RMB 10 billion. The planned site area of the project is about 1,000 mu (0.67 square kilometers), of which about 480 mu in Phase I.

The partnership will help accelerate the company's layout in power and energy storage batteries and further its overall development in lithium-ion battery production and R&D, Eve Energy said.

Based in Huizhou city, Guangdong province, Eve Energy's main business covers consumer batteries and power batteries. The company's performance has improved significantly in recent years as the industry has entered a high boom period.

From 2019 to 2021, the company achieved revenue of RMB 6.412 billion, RMB 8.162 billion and RMB 16.900 billion, respectively, and net profit of RMB 1.522 billion, RMB 1.652 billion and RMB 2.906 billion, respectively.

Like other Chinese power battery makers, Eve Energy continues to expand its production capacity.

In November 2021, it said it plans to build a 152.61 GWh per year power cell storage battery project in Jingmen city, Hubei province.

In March 2022, it said it plans to build a 20 GWh square lithium iron phosphate battery production line and ancillary facilities project and a 48 GWh power battery storage battery production line and ancillary facilities project in Jingmen.

Eve Energy achieved revenue of RMB 6.734 billion in the first quarter, up 127.69 percent year-on-year; net profit was RMB 521 million, down 19.43 percent year-on-year, it showed in its earnings report released yesterday.

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