Changan and Ganfeng will set up a joint venture based on equal shareholding to accelerate solid-state battery development and manufacturing.

(Image credit: CnEVPost)

Automotive giant Changan Automobile is teaming up with Ganfeng Lithium -- the world's largest lithium producer by market capitalization -- to build next-generation batteries.

Changan and Ganfeng signed a memorandum of cooperation in Ningbo, Zhejiang province, on December 22 to establish a long-term strategic partnership, according to a stock exchange announcement by the carmaker yesterday.

The two sides will establish a joint venture company based on equal shareholdings to accelerate solid-state battery research, development and manufacturing, according to the announcement.

Based on cooperation in next-generation solid-state battery technology, Changan and Ganfeng will also explore cooperation in areas including lithium mining resources, lithium processing, battery materials, and recycling of used batteries, the announcement said.

The partnership is part of Changan's Shangri-La program released in 2017 to accelerate its new energy vehicle (NEV) transformation, the automaker said.

The two will work together to build an internationally competitive solid-state battery research, development and manufacturing base to promote faster industrialization of solid-state battery technology, Ganfeng chairman Li Liangbin said, according to a Changan press release.

The next-generation solid-state battery technology mentioned in the announcement may first be installed in models from Changan's NEV unit Deepal, local media Yicai said in a report yesterday, citing an insider.

In Changan's research and development system, the division related to battery development was first at Changan New Energy, which was later renamed Deepal, Yicai's report noted.

In addition to Deepal, Changan's sub-brands focused on the NEV sector include Avatr, Nevo (or Qiyuan).

Changan New Energy began developing its own battery cells in 2022. On November 2 this year, Deepal saw the first 4C fast-charging battery cell Pre-A prototype roll off the production line.

CATL Changan, a joint venture between Deepal, Changan and CATL, saw its first battery cell roll off the production line on November 24.

Changan is betting big on battery R&D, announcing on November 17, the first day of the Guangzhou auto show, that it plans to launch eight models of in-house developed battery cells by 2030, including liquid, semi-solid, solid technologies, and that its annual battery production capacity will be no less than 150 GWh.

Changan already has more than 1,200 battery R&D staff and the battery team will reach 3,000 by 2024, it announced at the Guangzhou auto show.

The carmaker is developing leading-edge solid-state batteries for gradual mass production starting in 2025, with energy densities of 350-500 Wh/kg, Changan said at an investor communication last month, according to minutes of a meeting it released at the Shanghai Stock Exchange.

Changan is working on prototype cell designs for new types of batteries, such as lithium-sulfur and metal batteries, and expects the energy density to exceed 1,300-1,500 Wh/kg, with the aim of starting to be used in mass-produced vehicles in 2035, according to the minutes.

Ganfeng is also working on solid-state batteries, saying in the minutes of an investor conference released on May 19 that its first-generation solid-state batteries can reach an energy density of 260 Wh/kg, with a production line designed to have an annual capacity of 4 GWh.

Ganfeng's second-generation hybrid solid-state lithium batteries use lithium metal as the anode and can reach an energy density of 400 Wh/kg, the company said.

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