Shanghai (ZXZC)- Sunwoda Electric Vehicle Battery Co., Ltd. (“Sunwoda EVB”) is ready to sign an agreement with the Zhuhai municipal government to build a power battery manufacturing base in the city of China's Guangdong province, according to an announcement issued on Tuesday by Sunwoda Electronic Co., Ltd. (“Sunwoda”), the parent of Sunwoda EVB.

Photo credit: Sunwoda EVB

The Zhuhai power battery base will feature a designed yearly production capacity of 30GWh. The project will involve a total investment of around 12 billion yuan ($1.901 billion), 10 billion yuan ($1.584 billion) of which will be poured in fixed assets. Upon completion of the construction, the facility will focus on the R&D, design, production and sale of power battery cells, battery modules, and battery systems.

Moreover, Sunwoda EVB will set up a subsidiary, temporarily named Zhuhai Sunwoda New Energy Co., Ltd., to advance the implementation of the project.

On the same day, Sunwoda also announced that Sunwoda EVB has received a statement from SAIC Motor, who designated the former as a power battery supplier for its vehicles under the ZS12MCE HEV project.

As for the funding progress, Sunwoda EVB would secure 2.43 billion yuan ($385 million) from 19 investors, including Jiangsu Chehejia Automobile Co., Ltd. and Suzhou Weirui Investment, which are affiliated companies of Li Auto and NIO, Sunwoda announced last week.