FinDreams Technology, the battery subsidiary of BYD, has filed paperwork to establish a new battery production facility in Central China.
BYD has seen rapid growth in its automotive business over the past two years. Just last year, BYD tripled its annual vehicle sales, with the vast majority of those being sold in China.
Now, as the company looks to expand outside of Asia, it is doubling down on its Chinese production capabilities. According to Reuters, BYD will construct a battery production facility that produces 40 GWh of batteries annually. The facility will be located in Zhengzhou in the Henan province in East-Central China.
The environmental fillings found on a local Chinese government website state that the project will come at an expected cost of 8 billion yuan ($1.2 billion). However, a construction start date was not specified. Before beginning construction, the plan must be approved by the provincial government.
The upcoming facility would produce BYD’s “Blade” battery, found in the Tesla Model 3 competitor BYD Seal and BYD Han sedans. Using an LFP chemistry, BYD advertises the battery as a more affordable, faster charging, and more durable option compared to more traditional NMC battery chemistries.
BYD’s new battery production follows a string of announcements that BYD would be entering numerous global markets. Perhaps most notably, BYD will be selling its Atto 3 EV SUV in Japan in the coming months, with numerous showrooms and charging locations already planned for construction. The Chinese automaker will also be entering the South American market, selling its EVs and PHEVs in countries like Argentina and Brazil.
By producing more of its batteries in China, BYD will likely attempt to keep costs down for its affordable vehicles. Unlike Tesla or other Chinese brands such as Li Auto, Xpeng, and NIO, BYD’s vehicles can be as much as half the price.
BYD’s automotive expansion has been somewhat of a marvel, so much so that it has attracted the likes of Berkshire Hathaway, which made billions on its initial investment. However, as more and more EV makers enter the market, both in China and globally, BYD will face an uphill battle to ensure its dominance in the market. With this newest battery production facility it is certainly headed in the right direction.
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