Shanghai (ZXZC)- On Dec. 11, GAC Group broke ground on the factory of Yinpai Battery Technology Co., Ltd. ("Yinpai Battery"), which is set up to help the Guangzhou-based auto giant build its own strengths in R&D and production of power batteries, according to a post on GAC Group's WeChat account.

Involving a total investment of 10.9 billion yuan ($1.561 billion) and covering an area of around 666 mu (444,000 square meters), Yinpai Battery will feature a comprehensive industrial chain that embraces R&D, design, smart manufacturing, sale, and services of power batteries.

Photo credit: GAC Group

According to GAC Group's press release, the new factory is expected to introduce the volume production line with the initial annual production capacity of 6GWh before March 2024, and expects to see the production lines for the overall designed capacity (36GWh) completed by the end of 2025.

When facilities become fully operational, Yinpai Battery's factory is able to serve 600,000 electric vehicles (EVs) regarding power battery installation annually, with its yearly production value likely to exceed 21 billion yuan ($3.008 billion).

The factory is expected to create over 15,000 jobs for local industrial clusters, said GAC Group.

Incorporated on Oct. 26, 2022, Yinpai Battery is 51% held by GAC AION, 40% held by GAC Motor, and 9% held by GAC Business, according to the corporate information platform Tianyancha.

The ground-breaking of Yinpai Battery's factory will help GAC AION build a closed-loop energy ecosystem that involves upstream battery raw materials, and R&D, manufacturing, recycling, and cascade utilization of power batteries.