EVE Energy Co., Ltd. Business Report FY ended Dec. 2022
Financial Overview |
(in million CNY) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | Rate of change（%） | |
| Sales | 16,899.80 | 8,161.81 | 107.06 |
| Operating profit | 3,091.36 | 1,928.83 | 60.27 |
| Ordinary income | 3,041.36 | 1,917.97 | 58.57 |
| Net income | 3,149.49 | 1,681.31 | 87.32 |
Sales by product (FY ended Dec. 31, 2021)
-By product category, the consumer battery business increased by 67.79% y/y, and the power battery business increased by 146.25% y/y.
- In the fiscal year ended December 31, 2021, sales of the drive battery business increased 146.3% y/y to CNY 10 billion. This was mainly due to the continued increase in production of ternary pouch batteries for passenger cars and sustained expansion in the scale of shipments.
Orders
| Chengdu Dayun | -The company announced that its subsidiary, EVE Power Co., Ltd. (EVE Power), recently received a notice of supplier designation from the Yuncheng subsidiary of Chengdu Dayun Automotive Group Co., Ltd. (Chengdu Dayun). EVE Power has been selected as Chengdu Dayun’s development supplier for the Series 46 large cylindrical battery cells. (From a press release dated April 21, 2022) |
|---|---|
| Bosch | -The company announced that the company recently received a notice of supplier designation from Robert Bosch GmbH (Bosch). EVE Energy has been selected as Bosch's supplier to provide Bosch with lithium-ion power batteries which will be used for auxiliary applications in electric vehicles in the global market. (From a press release dated March 18, 2022) |
| Powin Energy | -Powin Energy Corporation (Powin Energy) announced that it has signed a supply agreement with EVE Energy Co., Ltd. (EVE Energy). As a strategic supplier of Powin Energy’s battery stack, EVE Energy will provide battery cells that meet the same specifications as those conventionally used by Powin Energy. This will allow Powin Energy to significantly reduce product integration time. The supply period will be two years, and EVE Energy will supply products equivalent to about 500MWh in 2021. The company began production of the first lot in August 2021 and started deliveries at the end of the fourth quarter of 2021. (From a press release dated August 11, 2021) |
| JLR | -The company announced that it participated in the 48V battery system project of Jaguar Land Rover Limited (JLR). It recently received a letter from JLR, informing EVE Energy that it became the supplier for JLR’s 20Ah MHEV Battery project. (From a press release dated February 25, 2021) |
Strategic alliance
| Yunnan Province | -The company announced that it has signed a partnership agreement in Kunming, Yunnan Province, on an NEV (New Energy Vehicle) battery full-industrial chain project with the Yuxi city government, Yunnan Energy New Material Co., Ltd. (Yunnan Energy New Material), Zhejiang Huayou Holding Group Co., Ltd. (Huayou Holding), and Yunnan Yuntianhua Co., Ltd. (Yuntianhua). Per the agreement, all parties will jointly establish two joint venture companies in Yuxi, Yunnan Province. The joint venture companies will exploit mineral resources and process them for the R&D, manufacturing and sales of NEV batteries, as well as upstream and downstream materials for NEV batteries. EVE Energy, Yunnan Energy New Material, Huayou Holding, and Yuntianhua plan to focus on the target mineral resources in Yuxi to produce NEV batteries, lithium battery separators, iron phosphate and lithium iron phosphate, and copper foil. (From a press release dated February 17, 2022) |
|---|---|
| Huizhou municipal government | -The company announced that it signed a framework agreement for a strategic partnership with the Huizhou municipal government. According to the agreement, the Huizhou government will support EVE Energy in building new projects in the city and provide help to project investors. It will also assist EVE Energy in attracting upstream raw material suppliers to establish manufacturing sites in the city and support EVE Energy in building a New Energy Vehicle battery industrial park. Additionally, the Huizhou government will support EVE Energy in its innovative development and launch incentive policies to facilitate the introduction and training of top talent. Conversely, EVE Energy and its subsidiaries promise to invest no less than CNY 2 billion in local R&D and innovation projects. The company will put more effort into introducing talent with doctoral degrees and plans to build an R&D facility for energy storage and power batteries as well as a key material research center, which are expected to have world-leading technological expertise and global influence. As soon as the conditions for starting construction of the plant are met, EVE Energy and its subsidiaries expect to achieve a combined output value of CNY 100 billion by 2025. Furthermore, EVE Energy will introduce upstream suppliers and projects that focus on cathodes, anodes, electrolytes, separators, copper foils and other major materials for manufacturing of lithium batteries. (From a press release dated February 7, 2022) |
| Sunresin | -The company announced that it signed a strategic cooperation agreement with Sunresin New Materials Co., Ltd. (Sunresin). The two parties will carry out deep cooperation in the lithium industry chain and participate in the development and utilization of lithium resources in Jieze Chaka Salt Lake, Tibet. Sunresin will encourage all parties involved in the project to give priority to supplying qualified lithium salts to the company and its designated parties on a long-term basis at competitive prices. (From a press release dated January 11, 2022) |
| GEM | -The company announced that it has signed a memorandum of understanding (MOU) with GEM Co., Ltd. (GEM) for the supply of 10,000 tons of recovered nickel for recycling. GEM will supply recovered nickel products to EVE Energy, and EVE Energy will supply power batteries and battery waste materials containing discarded nickel to GEM, which promotes "recovery of power batteries - remanufacturing of battery materials - remanufacturing of power batteries", a full lifecycle value chain for power batteries and a global green supply chain for nickel products. This will help the achievement of the CO2 emission reduction target for power batteries and create synergies in terms of economic and social benefits. GEM will annually supply more than 10,000 tons of recovered nickel (including nickel sulfate, ternary precursors, ternary materials, and other nickel products) to EVE Energy from 2024. The term of the partnership will be10 years from the start of supply, with the possibility of increasing the volume and extending the partnership period depending on the situation. Depending on future demand, the two sides will also consider building plants for power battery recovery and nickel resource recovery on a global basis. (From a press release dated August 10, 2021) |
| Dynanonic | -The company announced that the construction of a lithium iron phosphate production plant was commenced in the Qujing Economic and Technological Development Area, Yunan Province. It is a cooperative project between EVE Energy and Shenzhen Dynanonic Co., Ltd. and is expected to produce 100,000 tons of lithium iron phosphate annually. The project will help stabilize the raw material supply of EVE Energy. With an investment of around CNY 2 billion, it will produce an annual output value of no less than CNY 4.2 billion after the completion of construction. (From a press release dated April 1, 2021) |
| -The company announced that it has signed a joint venture agreement with Shenzhen Dynanonic Co., Ltd. (Dynanonic). The companies plan to establish a joint venture with a registered capital of CNY 100 million. EVE Energy and Dynanonic will hold 40% and 60% equity shares in the new company, respectively. The company will mainly produce lithium iron phosphate, which will be preferentially supplied to EVE Energy and its subsidiaries. The joint venture intends to invest CNY 2 billion to develop an annual production capacity of 100,000 tons. (From a press release dated March 24, 2021) | |
| StoreDot | -StoreDot announced the availability of engineering samples of its first-generation 5-minute charge battery. This represents a significant milestone for the company in its mission to eliminate the range and charging concerns of electric vehicles (EVs), demonstrating the commercial viability of XFC batteries for the first time via a small form-factor battery cell. The first-generation engineering samples will demonstrate to EV OEMs and battery manufacturers for the first time the successful replacement of graphite in the cell’s anode using metalloid nano-particles – a key breakthrough in overcoming major issues in safety, battery cycle life and swelling. StoreDot is releasing the first production batch of sample cells, which is targeted at showcasing the technology to potential EV and industry partners. This first-generation battery was used to demonstrate the full charge of a two-wheeled EV in just 5 minutes for the first time. The sample cells were produced by StoreDot’s strategic partner in China – EVE Energy Co., Ltd. StoreDot XFC batteries are designed to be produced on existing Li-ion production lines at EVE Energy. The samples are compliant with UN 38.3, which ensures the safety of Li-ion batteries during shipping. (From a StoreDot press release dated January 19, 2021) |
Plant production
-The company announced that Qujing Dynanonic EVE Co., Ltd. (Dynanonic EVE) has begun trial production of its lithium iron phosphate project with an annual capacity of 110,000 tons in Qujing Economic and Technological Development Zone, Yunnan Province. Dynanonic EVE is a joint venture between EVE Energy and Shenzhen Dynanonic Co., Ltd. (Dynanonic). EVE Energy has a 40% stake in this joint venture, while Dynanonic holds a 60% stake. (From a press release dated May 10, 2022)
-The company announced that it started production at its new plant (Plant 29) and unveiled products. EVE Energy’s 29th plant is located at the international cooperation industrial park, Tonghu Ecological Smart Zone, Huizhou City, Guangdong Province. The plant involves a total investment of CNY 2.1 billion and covers an area of 135,000 square meters. After completion, it will engage in R&D, manufacturing and sales of products including but not limited to 12V and 48V battery systems for vehicles. At the same time, EVE Energy unveiled xHEV (x-hybrid electric vehicle) products, including 12V LFP (lithium iron phosphate) battery systems for hybrid and electric passenger vehicles, 48V NCM (nickel cobalt manganese) battery systems for MHEV, and 48V NCM battery systems for HEV. (From a press release dated April 29, 2022)
Investment
| Locations | Amounts (CNY) | Details |
|---|---|---|
|
Chengdu, |
20 billion |
Construction of a production line with an annual capacity of 50 GWh -The company announced that it intends to sign a strategic cooperation framework agreement on its 50GWh power storage battery project with the administration committee of Chengdu Economic and Technological Development Zone (CETDZ). In CETDZ, EVE Energy or its designated subsidiary plans to build a power storage battery production base with an annual production capacity of 50GWh and a research institute in two phases. In the first phase, a 20GWh power storage battery manufacturing site and the first phase of the research institute will be built; in the second phase, a 30GWh power storage battery manufacturing site and the second phase of the research institute will be built. The total investment of the project is CNY 20 billion. (From a press release dated April 28, 2022) |
|
Jingmen, |
12.6 billion |
Production line for prismatic lithium iron phosphate batteries (20 GWh/year) and drive batteries (48 GWh/year) -The company announced that EVE Power Co., Ltd., its subsidiary, has signed a contract with the Management Committee of Jingmen Hi-tech Industrial Development Zone in Hubei to invest in the construction of a 20 GWh square LFP battery production line and auxiliary facilities project as well as a 48 GWh power storage battery production line and auxiliary facilities project respectively in the Jingmen Hi-tech Zone. Hereinto, the 20 GWh square LFP battery production line and auxiliary facilities project is planned to cover 180,000 square meters of land, with investment in fixed assets totaling some CNY 3.8 billion and post-completion square LFP battery capacity expected at 20 GWh/yr, while the 48 GWh power storage battery production line and auxiliary facilities project is planned to cover 480,000 square meters of land, with investment in fixed assets totaling some CNY 8.8 billion and post-completion power storage battery capacity expected at 48 GWh/yr. (From EVE Energy’s SZSE announcement dated March 11, 2022) |
|
Huizhou, |
0.70 billion |
Construction of "Drive Battery R&D Center" -The company announced that the company and its subsidiary Huizhou EVE Power Battery Co., Ltd. (Huizhou EVE Power Battery) intend to invest in the construction of a power battery R&D center project in Huizhou Zhongkai (HZZK) High-tech Industrial Development Zone, Guangdong Province. EVE Energy will invest in the construction of a “power battery R&D center”, while Huizhou EVE Power Battery will invest in the construction of a “common technology R&D and innovation service platform for electrochemical energy storage and power battery industry”. With a total investment of approximately CNY 690 million, the “power battery R&D center” will be built at No. 71-2, Chenjiang Street, HZZK High-tech Industrial Development Zone. It will be a power battery R&D center with comprehensive capabilities such as compatibility with different models and sizes, customized development, automated trial production lines, electrical performance and environmental adaptability testing, safety testing, an office building, and a parking building. The project covers an area of 58,610 square meters, with a construction area of approximately 134,000 square meters. With a total investment of approximately USD 230 million, the “common technology R&D and innovation service platform for electrochemical energy storage and power battery industry” will be built on a leased plant at No. 71-2, Chenjiang Street, HZZK High-tech Industrial Development Zone. By introducing domestic and foreign advanced test equipment, outstanding supporting equipment for testing, and laboratory monitoring system, this platform will have comprehensive capabilities such as customized development, automated trial production lines, electrical performance and environmental adaptability testing, and safety testing. (From a press release dated January 13, 2022) |
|
Jingmen, |
6.2 billion |
Production line for large-diameter cylindrical batteries (20 GWh/year) and square iron phosphate batteries (16 GWh/year) for passenger cars -The company announced that its subsidiary, EVE Power Co., Ltd. (EVE Power), intends to sign a contract with the Administrative Committee of Jingmen High-tech Industrial Development Zone in Hubei province to invest in building a 20GWh large cylindrical battery production line for passenger vehicles and its supporting infrastructure, and a 16GWh square lithium-iron phosphate battery production line and its supporting infrastructure. The total investment in fixed assets of the project will be about CNY 6.2 billion. The 20GWh large cylindrical battery production line for passenger vehicles and its supporting infrastructure are planned to cover an area of about 178,667 square meters, with a total fixed asset investment of about CNY 3.2 billion. It is expected to produce a capacity of 20GWh large cylindrical batteries annually after completion. The 16GWh square lithium-iron phosphate battery production line and its supporting infrastructure are planned to cover an area of about 238,667 square meters, with a total fixed asset investment of about CNY 3 billion. It is expected to produce a capacity of 16GWh square lithium-iron phosphate batteries annually after completion. (From a press release dated November 6, 2021) |
|
Jingmen, |
- |
Invested in the construction of a new drive battery plant (30 GWh/year) -The company announced that it has signed a strategic investment agreement with the Management Committee of Jingmen Hi-Tech Industrial Development Zone. The company and its subsidiaries will build a power battery plant with an annual production capacity of 30 GWh in Jingmen. Specifically, it will build a 15 GWh lithium-ion iron phosphate rechargeable battery plant for logistics vehicles and households, and a 15 GWh ternary rechargeable battery plant for passenger cars. For specific details, a separate agreement will be concluded between the Jingmen Hi-Tech Industrial Development Zone Development Committee and EVE Energy or a subsidiary of EVE Energy. (From a press release dated August 5, 2021) |
|
Jingmen, |
2.45 billion |
Investment to build a new battery plant -The company announced that its subsidiary, EVE Power Co., Ltd. (EVE Power), has signed an agreement with the Management Committee of Jingmen High-tech Industrial Development Zone to launch a lithium battery production facility in the Jingmen High-tech Industrial Development Zone. The facilities to be installed include a cylindrical lithium iron phosphate battery production line with an annual capacity of 3 GWh and auxiliary facilities, a cylindrical ternary lithium battery production line with an annual capacity of 0.7 GWh and auxiliary facilities, a rectangular lithium iron phosphate battery production line with an annual capacity of 3 GWh and auxiliary facilities, a rectangular ternary lithium battery production line with an annual capacity of 4 GWh and auxiliary facilities. The total capital investment for this project will be about CNY 2.45 billion. (From a press release dated July 22, 2021) |
|
Huizhou, |
3.9 billion |
Investment to build a new lithium-ion drive battery plant for passenger cars -The company announced that its subsidiary Huizhou EVE Power Battery Co., Ltd. (Huizhou EVE Power Battery) plans to build a lithium-ion power battery plant (second-phase) in the Tonghu Ecological Smart Zone, Huizhou City, Guangdong Province. This move is aimed at further expanding the power battery capacity of EVE Energy. With a total investment of up to CNY 3.9 billion, this project will mainly produce prismatic lithium iron phosphate batteries and covers an area of around 116,700 square meters. (From a press release dated March 11, 2021) |
|
Huizhou, |
3.6 billion |
Investment to build a new lithium-ion drive battery plant for passenger cars -The company announced that Huizhou EVE Power Battery Co., Ltd., a wholly-owned subsidiary of EVE Energy’s 100%-owned sub-subsidiary EVE POWER HONGKONG CO., LIMITED, plans to invest in two battery-related projects. One project is the first phase of a plant to manufacture lithium-ion power batteries for passenger vehicles, while the other project is the first phase of a plant to manufacture battery systems for hybrid electric vehicles. Specifically, the first project occupies a land area of about 59,000 square meters and will have a maximum investment of CNY 1 billion. It will carry out the manufacturing of rectangular lithium iron phosphate cells and modules. The second project occupies a land area of about 125,000 square meters and will have a maximum investment of CNY 2.6 billion. It will conduct the manufacturing of 12V and 48V battery systems. (From a press release dated February 19, 2021) |
|
Debrecen |
- |
Acquired land for new drive battery plant -The company announced that it signed a letter of intent (LOI) with Debrecen Real Estate Development, an affiliate of the Debrecen city government in Hungary, for Project Rose. In this non-binding LOI, EVE Energy or its affiliated entity (to be designated later) intends to purchase 45 hectares of land in the city’s industrial park (i.e., Northwest Economical Zone) for the construction of an EV battery plant in Hungary. (From a press release dated March 29, 2022) |
Subsidiary establishment/acquisition/capital increase
| Establishment | -The company announced its plan to establish a fuel cell joint venture with Golden Energy Global Investment Ltd. (Golden), a new energy research institute under EVE Energy and a business management limited partnership in the city of Huizhou, where EVE Energy is headquartered. The joint venture will have a registered capital of CNY 50 million. EVE Energy will contribute CNY 9.5 million and hold a 19% share. Gold will contribute CNY 17.5 million and hold a 35% share. The business management limited partnership will contribute CNY 20 million and hold a 40% share. The new energy research institute under EVE Energy will contribute CNY 3 million and hold a 6% share. The joint venture will engage in the research and development of emerging energy technologies and new material technologies. (From a press release dated November 26, 2021) |
|---|---|
| -The company announced today that it has signed an agreement to establish a joint venture with Tongling Huachuang New Material Co., Ltd. (Tongling Huachuang). The joint venture will be capitalized at CNY 480 million. EVE Energy will hold 30% of the voting rights in the joint venture, and Tongling Huachuang will hold 70%. The joint venture company will produce copper foil for lithium batteries and supply it preferentially to EVE Energy and its subsidiaries. The joint venture will build a plant with an annual production capacity of 100,000 tons of copper foil for lithium batteries, but the initial annual production capacity is planned to be 20,000 tons. (From a release dated September 3, 2021) | |
| -The company announced today that it has signed a joint venture management agreement as well as a supplemental agreement with Yunnan Energy New Material Co., Ltd. (Yunnan Energy New Material) for the establishment of a joint venture.. The joint venture will focus on the production of separators and coating film for lithium-ion batteries. The annual production capacity will be 1.6 billion square meters of wet base film and coating film. Products will be supplied on a priority basis to EVE Energy and its subsidiaries. The total investment amount is CNY 5.2 billion. The joint venture company will be capitalized at CNY 1.6 billion. The designated investor in Yunnan Energy New Material will invest CNY 880 million and hold 55% of the shares. EVE Energy will invest CNY 720 million and hold 45% of the shares. (From a press release dated August 2, 2021) | |
| Acquisition | -The company announced that it has acquired a 35.2857% stake in Qinghai Chaidamu Xinghua Lithium Salt Co., Ltd. (Xinghua Lithium Salt) through auction, directly holding a total stake of 49% in Xinghua Lithium Salt. The completion of the transaction would help EVE Energy focus more on its main business of lithium batteries, develop upstream industrial chains, and improve its industrial distribution. (From a press release dated January 13, 2022) |
| The company announced that it intends to acquire a 28.125% stake in Jin Kunlun Lithium Industry Co., Ltd. (Jin Kunlun). Jin Kunlun is a company whose main business is producing lithium metal, with a current annual production capacity of 1,000 tons and plans to increase it to 3,000 tons in the future. At the same time, the two companies signed an investment agreement in which they both agreed to establish a joint venture in Qinghai. With a total investment of up to CNY 1.8 billion, they will build a lithium carbonate and lithium hydroxide plant with an annual production capacity of 30,000 tons. In the first phase, the plant will have an annual production capacity of 10,000 tons. The joint venture is planned to have a registered capital of CNY 180 million. EVE Energy will hold 80% of the shares, while Jin Kunlun will hold 20% of the shares. (From a press release dated July 9, 2021) | |
| Capital increase | -Yunnan Shinzoom Graphite Co., Ltd. increased its capital from CNY 600 million to CNY 1 billion through investment by Yunnan Shinzoom Graphite Co., Ltd. The company with increased capital will be established in 2021, and its main business will be the manufacture of graphite and carbon products and batteries. |
| The company announced that its wholly-owned subsidiary EVE Asia Co., Ltd. (EVE Asia) will join BTR (Jiangsu) New Material Technology Co., Ltd. (BTR) and SK innovation Co., Ltd. (SKI) in a capital increase deal related to Changzhou BTR New Material Technology Co., Ltd. (Changzhou BTR), a subsidiary of BTR. After the deal is finalized, Changzhou BTR will become a joint venture among EVE Energy, BTR and SKI, with its registered capital increasing from CNY 5 million to CNY 1.9544 billion. BTR, SKI and EVE Asia will hold 51%, 25% and 24% of the shares in Changzhou BTR respectively. As a tripartite joint venture, Changzhou BTR will engage in operations related to high-nickel cathode materials for lithium-ion batteries (LIBs) and LIB recycling. It will also develop and manufacture precursors and other products agreed by the three companies. Additionally, Changzhou BTR will be designed and built to reach a maximum annual capacity of 50,000 tons of high-nickel ternary cathode materials for LIBs. (From a press release dated May 17, 2021) |
R&D structure
-The Company has a research and development team with over 30 PhDs and nearly 600 engineers in the fields of materials, electrochemistry, structural design, and electronic-circuit design.
-The R&D center covers an area of 50,000 square meters and has assets worth over CNY 300 million. It has five research laboratories, including a series of laboratories that check electrical performance and measure safety and reliability. It has partnered with many universities and research institutes, including Wuhan University, South China University of Technology and South China Normal University.
R&D Centers
| Content | |
| Primary lithium battery technology center | The company has two large laboratories, including a materials analysis laboratory, an electrochemical analysis laboratory, and a safety measurement and pilot production line, are available for testing, analysis, and measurement of the entire lithium battery life cycle. In 2017, the company invested further in R&D of primary lithium batteries by setting up a building of 14,000 square meters to focus on R&D of lithium batteries with solid cathodes. |
| Lithium-ion battery technology center | The center is primarily engaged in the R&D of lithium-ion power batteries, lithium-ion energy storagebatteries, consumer lithium-ion batteries, and new materials and core technologies. It also develops high-safety power and energy storage battery module and system integration technologies, to provide global customers with power supply solutions. |
| Power supply system technology center | This center consists of the automotive power battery department, energy storage communication department and safety reliability department, to mainly design, develop and verify energy storage communication and automotive power batteries. Since its establishment, the company has undertaken several national and Guangdong major scientific research projects: 1) Key technology research and industrialization of battery electric logistics vehicle power supply systems 2) Dual energy power integration unit and control system research and industrialization of extended-range electric buses |
R&D Expenditure |
(in million CNY) |
| FY ended Dec. 31, 2021 | FY ended Dec. 31, 2020 | FY ended Dec. 31, 2019 | |
| R&D expenditure | 1,379.21 | 723.1 | 476.79 |
| Ratio of total income (%) | 8.16 | 8.9 | 7.44 |
-As of the end of December 2021, the Company had 2,159 R&D personnel. This represents 14.56% of the Company's total workforce.
Patents
-As of December 31, 2021, the number of China patent applications is 3,420. Among them, 1,838 patents were granted. (From the 2021 Annual Report)
-The company announced that it passed the TISAX AL3 assessment, the highest level information security management system recognized by the European Automobile Manufacturers’ Association. TISAX (Trusted Information Security Assessment Exchange) is an assessment and exchange mechanism for information security founded jointly by the German Association of the Automotive Industry (VDA) and the ENX Association. (From a press release dated May 24, 2021)
-The company announced that its subsidiary, EVE Power Co., Ltd. (EVE Power), has obtained ISO 26262: 2018 (Ed.2 up to ASIL D) process certification from Nord Cert GmbH. The ISO 26262 standard is an automotive functional safety standard. This standard is designed to achieve systematic design throughout the entire product life cycle through the development process and to control the risk of system failure due to electronic and electrical failures due to electronic and electrical faults at a reasonable level.ASIL (Automotive Safety Integration Level) is a risk classification system defined in the ISO 26262 standard, with four grades: A, B, C and D. The higher the grade, the lower the risk of system failure and the more rigorous the development process. EVE Power passed ASIL D, the highest grade. (From a press release dated June 18, 2021)