Geely invests 8 billion to build a power battery company, which will start production in 2020

It was recently revealed that Geely, through its subsidiary, invested 50 million yuan to establish Hubei Geely Hengyuan New Energy Technology Co., Ltd. in Wuhan to develop its power battery business. Geely Group CEO Xu Zhihao will also serve as the chairman of the new company.

Geely Group said that the new company in Hubei will become an important production base for Geely's new energy power batteries in the future, but there is no plan to settle the whole vehicle project in Wuhan for the time being.

The new factory is located in the second phase of Xintan Economic and Trade Zone. The total investment of the project is 8 billion yuan, and the battery and module production lines, R&D center, comprehensive office building, logistics selection center, etc. The project will be implemented in two phases. It is planned to complete the site selection and preliminary work in 2018 and put into production in 2020.

Geely's layout in the field of power batteries is not limited to this. According to reports, in April 2017, LG Chem and Geely Group reached an agreement, and Geely Group fully acquired the right to use all production equipment and manufacturing technology intellectual property rights of LG Nanjing Factory. Subsequently, Geely Group dismantled the production equipment of the factory to its Hengyuan Battery Base in Jinhua, Zhejiang.

In recent years, Geely has been deepening its layout in the new energy field, which is mainly due to the "Blue Geely Action" strategy proposed in 2015. It plans to achieve production and sales of 2 million vehicles by 2020, with new energy products accounting for 90%. In the new energy field, plug-in hybrid and oil-electric hybrid vehicle sales account for 65%, and pure electric vehicle sales account for 35%.

As time goes by, Geely is also making continuous arrangements for this purpose. As of now, the total sales of Geely Auto in the first eight months of 2018 has exceeded one million, reaching 1.0124 million vehicles (including Lynk & Co), an increase of about 41% over the same period last year, reaching 64% of the group's 2018 annual sales target of 1.58 million vehicles.

According to the China Passenger Car Association, Geely sold 26,700 new energy passenger vehicles in the first eight months of this year. Although this is a year-on-year increase of nearly 52%, it is still a long way from the target. If Geely wants to realize the Blue Geely Action Plan in 2020, it needs to further exert its efforts in the new energy field.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.