On September 20, EVE announced that its subsidiary EVE Power has signed a strategic cooperation agreement with Dayun Group. Going forward, EVE will be supplying more power batteries to Dayun’s electric vehicles. They will also engage in full-scale collaborations on power battery installation, application development, etc.

Under the agreement, electric vehicles under Dayun’s Yuanhang brand will be equipped with large cylindrical batteries belonging to EVE’s 46 Series. Furthermore, EVE will work with Dayun in cost optimization, quality improvement, etc. They will synergize their respective expertise to create mutual benefits.

EVE will be supplying the most competitive battery products to Dayun at the best terms. EVE also guarantees that for various vehicle models under the Yuanhang brand, there will be sufficient power batteries to support their production. All in all, Dayun will be a priority customer when it comes to meeting battery orders.

Headquarter in the Yuncheng Economic and Technological Development Zone (in China’s Shanxi Province), Dayun is a private conglomerate that manufactures and sells various types of vehicles through its subsidiaries. The company is currently valued at more than RMB 11 billion. Its offerings include trucks (i.e., heavy, medium, and light), motorcycles, and engines.

Currently, Dayun has the capability to develop and manufacture all types of vehicles, including electric ones. Its three major production sites are located in Yuncheng, Chengdu (in Sichuan Province), and Shiyan (in Hubei Province). The Yuncheng base focuses on heavy trucks and electric vehicles, whereas the other two bases mainly manufacture light and medium trucks respectively. This April, EVE officially became Dayuan’s supplier for large cylindrical batteries under its 46 Series. The battery supply for Dayuan’s Chengdu base has been entirely outsourced to EVE as well.

EVE is the first Chinese battery supplier to have announced plans to set up production capacity for large cylindrical batteries. Over the past few years, it has been investing in production lines for large cylindrical batteries in the Jingmen Hi-Tech Industrial Zone, which is within Hubei Province. This March, EVE disclosed that it will be building a factory for cylindrical batteries in Debrecen, a city in northeastern Hungary, in order to capture more business opportunities in Europe. Later this August, the company has obtained the approval to issue RMB 9 billion worth of shares. Of that amount, RMB 6 billion will be used to invest in the production of 46 Series batteries. It is also worth noting that CATL formally initiated a battery manufacturing project in Debrecen this September as well.

Looking at product development, EVE successfully manufactured its first batch of in-house developed 4680 cylindrical battery cells on August 2. The company touts that this product offers a high level energy density, a high level of reliability, and an excellent cost-to-performance ratio.

Commenting on the strategic cooperation agreement with Dayun, EVE said this alliance will allow both parties to benefit from each other’s advantages and resources. Dayun’s demand will help EVE increase its presence in not only the market for Li-ion power batteries but also other markets related to new energy technologies. Hence, the partnership is in line with the company’s growth strategy and the interests of the company’s shareholders.

This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.