Shanghai (ZXZC)- Chinese power battery manufacturer Sunwoda Electric Vehicle Battery Co., Ltd. ("Sunwoda EVB") intends to sign an agreement with the municipal government of Yiwu city, Zhejiang province to build a new power battery base, according to an announcement issued today by its parent company, Sunwoda Electronic Co., Ltd. ("Sunwoda").

The proposal has been approved by Sunwoda's board of directors. According to the statement, Sunwoda EVB will set up a subsidiary in Yiwu to manage the project.

Photo credit: Sunwoda

Sunwoda said the new investment project will focus on the sales and production of lithium ion power batteries and energy storage batteries, with products including battery cells, modules, packs and battery systems.

The battery base project will involve a planned investment of around 21.3 billion yuan ($3.038 billion), about 16 billion yuan ($2.282 billion) of which will be poured as fixed assets, and will feature a total designed annual production capacity of 50GWh power batteries and energy storage batteries.

The project will be conducted in two phases. To be specific, the first phase is planned to involve 12.8 billion yuan ($1.826 billion) worth of investment with a production capacity of 30GWh per year, while the rest 8.5 billion yuan ($1.212 billion) and 20GWh are reserved for the second phase.

Notably, Sunwoda EVB inked an agreement on Sept. 18 with Dongfeng Motor Group Company Limited ("Dongfeng Motor"), and Dongfeng Hongtai Holdings Group Co., Ltd. ("Dongfeng Hongtai") to build a 30GWh power battery manufacturing base in Yichang city, Hubei province.