Shanghai (ZXZC)- The first phase of BYD Qinghai Nanchuan battery plant (hereinafter referred to as Nanchuan plant) put the 10GWh power battery manufacturing project into production on June 27. By 2019, the battery plant will finish the construction of whole projects and reach an annual production capacity of 24GWh. With the completion of many battery projects in various cities, BYD's annual battery production capacity is expected to reach 60GWh in 2020.

Nanchuan plant will engage in manufacturing ternary lithium batteries and BYD will not use all of the batteries in its models, but will take a flexible approach in accordance with the changing market demands. After BYD started to supply batteries to other companies, it has provided batteries for NEVs and buses of a number of automakers, such as Dongfeng Motor, Shudu Bus, Shandong Tai Kai Automobile, and etc.

BYD announced on June 25 that it plans to offer loans to its subsidiaries with raised funds, in order to carry out a R&D project of new-energy vehicles (NEV). In accordance with the fundraising plan released by BYD in July, 2016, the total raised funds would reach RMB 14.473 billion. Specifically, BYD authorizes its subsidiary Shenzhen BYD Lithium Battery Co., Ltd. to utilize RMB 6 billion in the production capacity expansion project of lithium-iron phosphate battery. BYD also plans to invest RMB 5 billion in the NEV R&D project and authorizes BYD Auto Industry Co., Ltd. (BYD Auto Industry) to conduct the project.

Founded in 1995, BYD started out as a battery factory. BYD's batteries were initially supplied for its own vehicles, covering passenger vehicles, commercial vehicles, specialty vehicles. From 2018, the company started to offer batteries to other automakers gradually.