Lishen Battery announced on June 26 that it has formally launched a major battery production base in China’s Tianjin Binhai Hi-Tech Development Area. Lishen will be investing more than RMB 10 billion into this project, which will span an area of 870 mu and have an annual production capacity of 24GWh for EV power batteries.

According to the reporting by other news outlets, the project will be developed in three phases, with 8GWh being added for each phase. Lishen aims to complete the entire base within four years after the start of construction. Once in operation, the whole base is expected to generate as much as RMB 12 billion in annual output value. Lishen is also touting that the base will be largest and most technologically advanced manufacturing site for EV power batteries in northern China.

Earlier this April, Lishen and Easpring Technology Material signed a strategic cooperation agreement. Specifically, Lishen will procure at least 100,000 metric tons of cathode materials from Easpring over a period of seven years (2022-2028). Easpring is a major Chinese supplier for battery cathode materials. Additionally, the two parties will be collaborating in areas such as product development, battery recycling, acquisition of upstream resources, etc.

Established in 1997 as a state-owned enterprise, Lishen is among the first Chinese companies to be involved in the R&D and manufacturing of Li-ion batteries. Hence, the company has accumulated a wealth of experience and developed a strong operational capability over the span of 25 years. Its product portfolio covers a wide range of applications. In addition to the existing advantages in innovation and RD&D, Lishen also possesses many key patents and industry talents.

TrendForce’s latest investigation finds that Lishen has already set up factories in several major Chinese cities (e.g., Tianjin, Qingdao, and Suzhou). In order to further scale up its production, the company has initiated new projects in Wuxi, Chuzhou, etc. Wanting to take full advantage of the current boom in the market for EV power batteries, Lishen aims to raise its annual total production capacity to 120GWh by the end of China’s 14th Five-Year Plan (2021-2025).

This article is a translation of a Chinese article written by Wendy at TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain.