Gotion High-tech Co., Ltd. Business Report FY ended Dec. 2021

Financial Overview

(CNY millions)
FY ended Dec. 31, 2021 FY ended Dec. 31, 2020 Rate of change (%) Factors
Sales 10,356.08 6,724.23 54.01

-Sales increased significantly due to market demand, while operating income decreased significantly due to increases in manufacturing costs, raw material costs, and research and development costs, mainly in the lithium battery business and power transmission line business.

Operating income 39.16 167.61 (76.63)
Ordinary income 47.83 166.44 (71.26)
Net income 76.93 146.90 (47.63)


2022 Annual strategy

-The company announced that it held its 2021 annual supplier conference in Hefei, where it released its 2022 annual operation, R&D, supply chain and quality related strategies.

  • In terms of its operation strategy in 2022, Gotion High-tech aims to develop operations in four fields, namely electric vehicle batteries, energy storage batteries, special-purpose batteries and battery recycling. The company also plans to build or expand its ten manufacturing sites. The annual capacity of the company is expected to grow to 100GWh by the end of 2022, with more than 50GWh of the total capacity achieved by the new or expanded facilities that will begin operation next year.
  • In terms of its R&D strategy in 2022, Gotion High-tech will continue to focus on the development of material systems, battery cells and cutting-edge technologies, and make efforts in product engineering and planning of energy storage products. It plans to develop lithium-iron cells and ternary cells with an energy density of 260Wh/kg and 400Wh/kg, respectively.
  • In terms of its supply chain strategy in 2022, Gotion High-tech will adopt standardization and a hierarchical management system to strengthen supplier management. The company aims to form a healthy supply chain and achieve win-win results with all suppliers. Gotion High-tech also announced its “6311” supply strategy, which means that the company will implement a 6-month forecast, have an order volume of three months, make a one-month production plan and ensure 7 days (one week) of supply.
  • In terms of its quality strategy in 2022,, Gotion High-tech will benchmark VW’s quality standards and management system, and encourage suppliers to improve their product quality through an upgraded management system. (From a press release dated December 17, 2021)

Plan to list on the SIX Swiss Exchange

-The company announced that the company plans to issue Global Depository Receipts (GDRs) overseas and list on the SIX Swiss Exchange. Through this move, Gotion High-tech aims to accelerate its international strategic expansion, build an international brand and image, and meet the capital needs for overseas business development. In addition, the overseas issuance of GDRs and the listing will not lead to changes in the controlling shareholder and actual controller of Gotion High-tech. (From a press release dated March 17, 2022)


VW China becomes the company's largest shareholder

-Volkswagen (China) Investment Co., Ltd., VW's Chinese subsidiary, has acquired a 26% stake in the Company and become its largest shareholder. The issue review committee of the China Securities Regulatory Commission (CSRC) reviewed and approved the stock acquisition. (From multiple media reports dated 7 April 2021)


New projects

Started construction of a lithium carbonate plant The Company's subsidiary Yifeng Gotion Lithium Industry Co., Ltd. (Yifeng Gotion) started the construction on a lithium carbonate project in Yifeng County, Yichun City, Jiangxi Province. The project is planned to be completed with an annual output of 50,000 tons of lithium carbonate including the comprehensive development and utilization of mined ore, divided into an annual output of 50,000 tons of lithium battery lithium carbonate and an annual output of 7.5 million tons of lithium mined ore. The project is expected to be completed and start production in the fourth quarter of 2022. Yifeng Gotion is a whollyowned subsidiary of Yichun Gotion Lithium Industry Co., Ltd., a sub-subsidiary of Gotion High-tech. (From a press release dated December 29, 2021)
Started construction of a 50GWh power battery project

The Company announced the start of its 50GWh power battery project at Hefei Xinzhan High-tech Industrial Development Zone. The project is scheduled to be constructed in two phases. The first phase covers an area of about 367,000 square meters and a building area of 300,000 square meters. Construction will start in December 2021, and the project will be in operation by the end of March 2023. After the completion of the second phase, it is expected to achieve the annual battery capacity target of 50GWh of drive batteries. (From a press release dated December 7, 2021)

Agreed to build a lithium carbonate plant in Jiangxi Province The Company announced that it has signed contracts with Yichen County People's Government and Fengxin County People's Government to build lithium carbonate plants in Yichun City, Jiangxi Province. The plants will have an annual production capacity of 100,000 tons of lithium carbonate and an annual output value of CNY 10 billion after full operation. In the Yichen Industrial Park, a comprehensive development site for lithium battery materials will be established on a site of about 400,000 square meters. The construction will be divided into two phases. The first phase, with construction starting in the third quarter of 2021 and scheduled for completion in 2022, will build a plant for 20,000 tons of lithium-ion materials including comprehensive development and utilization of 3 million tons of mined ore. In the second phase, the company will build another plant to produce 30,000 tons of lithium battery materials and to develop and utilize 5 million tons of mined ore per year. After all construction is completed, the value of the annual output is expected to reach CNY 5 billion. In the Fengxin High-tech Industrial Park, a comprehensive development site for new energy materials will be built in two phases. The site area is about 400,000 square meters. The first phase will include facilities for producing 20,000 tons of lithium battery materials and developing and utilizing 3 million tons of mined ore. In the second phase, additional facilities will be constructed to produce 30,000 tons of lithium battery materials, and to develop and utilize 5 million tons of mined ore. The annual production output is expected to reach a value of CNY 5 billion after the construction is completed. Construction of the first phase is expected to begin by the end of 2021, with a construction period of 18 months. (From a press release dated August 4, 2021)
Started construction of a production base for high-end cathode materials with an annual production capacity of 200,000 tons The Company announced that its wholly-owned subsidiary, Hefei Gotion High-tech Power Energy Co., Ltd. (Gotion Power) signed an investment contract with the management committee of the Hefei High-Tech Industrial Development Zone. Under the deal, Gotion Power will build a new plant in the development zone, and produce 200,000 tons of high-end positive electrode materials annually and this will allow Gotion High-tech to strengthen its presence further in the upstream industry chain. The new plant will be built on a site of 179,000 square meters and have a floor space of 120,000 square meters. The company plans to start the construction by the end of October 2021 and launch full-scale operations in 2025. Upon completion, the new plant is expected to generate a revenue of CNY 10 billion. (From a press release on July 26, 2021)
Started construction of a power battery production base with an annual production capacity of 20 GWh The Company announced that its subsidiary, Hefei Gotion High-tech Power Energy Co., Ltd., signed an agreement with the Hefei New & Hi tech Industrial Development Zone to build a new power battery plant. The new plant will produce an annual output of 20GWh in Hefei, all in the form of VW-standard battery cells. Its land space is 333,000 square meters. The construction work will be carried out in stages, with the first phase creating an annual output of 10GWh. The company plans to complete the construction and began production in 18 months. (From a press release on July 20, 2021)
Start of construction of Feidong Gotion battery material base The Company announced that it held a groundbreaking ceremony for a battery material site in Feidong, a county administered by Hefei in Anhui Province. The site occupies a land area of 1,520,000 square meters in an economic demonstration park in Hefei and has a total investment of about CNY 12 billion. It will include manufacturing facilities for raw materials of lithium-ion power batteries as well as facilities for battery recycling and reutilization. Construction of the site will be planned as a whole but implemented in separate phases. The first phase of the site is expected to begin operation in 2022. When the entire site is in operation, raw materials supplied by the site will enable Gotion High-tech to achieve an annual power battery capacity of 100GWh in 2025. The site will also support Gotion High-tech in recycling and reutilization of lithium batteries. (From a press release dated June 23, 2021)
Construction of Jiangxi Lithium Battery New Energy Industry Base

Guoxuan Holdings Group Co., Ltd. (Guoxuan Holdings Group), a related company of Gotion High-tech Co., Ltd. (Gotion High-tech), signed a strategic cooperation framework agreement with the people’s government of Yichun City, Jiangxi Province. Guoxuan Holdings Group plans to invest CNY 11.5 billion to build a lithium battery new energy industrial base in the Yichun Economic & Technological Development Zone. The project is to be conducted in two phases to produce lithium carbonate and lithium battery materials. The first phase is expected to begin in May 2021 and last for a maximum period of two years. The second phase is scheduled to be completed within five years. In the second phase, Gotion High-tech will actively promote the integration of upstream and downstream enterprises along the industry chain, based on the new energy industry development planning and Yichun’s advantages in lithium resources. (From various media sources dated March 4, 2021)

The company announced that it has agreed with Yichun Mining Co., Ltd. to invest CNY 100 million and establish Yichun Guoxuan Mining Co., Ltd. as a joint venture. The two companies will jointly develop mining resources and secure lithium ore supply resources for Gotion High-Tech. The joint venture will be owned 51% by Gotion High-Tech and 49% by Yichun Mining Industry Co., Ltd. The joint venture will be engaged in the mining, storage, management and operation of mining resources. In addition, Gotion High-Tech has reached an agreement with Yichun Economic and Technological Development Zone to build Yichun Lithium Battery Industrial Park and signed an investment agreement. The industrial park will carry out the extraction, processing and application of lithium carbonate, promote industrialization projects such as research and development and manufacturing of lithium batteries, and plan to build the Gotion High-Tech Supply Chain Regional Headquarters. Approximately 333,300 square meters of land will be secured for the industrial park, which will be constructed in two phases. Phase 1 is scheduled to be completed and operational by the end of 2022. In addition, an additional 333,300 square meters of land will be secured as a reserve. (From a press release dated March 25, 2021)
Started construction of a 30,000-ton/year production plant for ternary positive electrode materials The Company announced that it has started construction of a manufacturing site for ternary cathode materials with an annual capacity of 30,000 tons. With a land area of about 230,000 square meters, the site is located in the Lujiang High-tech Industrial Development Zone in the city of Hefei, Anhui Province. Construction of the site will be completed in 36 months, with operation expected to begin in late 2023. This project is the third-phase of construction for Hefei Gotion Battery Material Co., Ltd., a subsidiary of Gotion High-tech, and one of two investment projects implemented after Volkswagen (China) Investment Co., Ltd. became a shareholder of Gotion High-tech. Once completed, the plant will manufacture high nickel ternary cathode materials for power batteries. (From a press release dated January 19, 2021)
Signed an investment agreement with the government of Feidong County, Hefei City The Company announced that it has signed an investment agreement with the government of Feidong county, Hefei city, Anhui province. Pursuant to the agreement, Gotion High-tech intends to invest CNY 12 billion to build power battery industry chain series projects in the Hefei Recycling Economy Demonstration Park in Feidong county. The projects are mainly about power lithium batteries upstream raw materials and battery recycling. The projects are expected to cover an area of about 1,520,000 square meters and be completed within 24 months. The completion of projects will ensure Gotion High-tech a supply of raw materials for 100GWh power battery capacity in 2025. Lithium battery recover and recycling will also be solved at the same time. (From a press release dated March 22, 2021)


Strategic alliance

VW Group The Company announced that it has signed a strategic alliance framework agreement with the VW Group. In cooperation with the VW Group, Gotion High-tech will optimize the production layout, equipment arrangement and production processes at the VW Group's Salzgitter plant to accelerate the volume production of battery cells and develop battery units using the standard battery cells first for the VW Group's regular models. Hefei Gotion High-Tech Power Energy Co., Ltd. (Hefei Gotion), a wholly owned subsidiary of Gotion High-tech, has also agreed with VW China to develop standard battery cells for regular models. This battery cell manufacturing solution can be applied to a variety of chemical components and is highly compatible with current and future manufacturing and product technologies, leading to a significant reduction in overall costs, according to the company. The solution will be introduced into products in 2023 and will be used in 80% of the VW Group's electric vehicles by 2030. Gotion High-tech is in the process of acquiring VW Group supplier certification. After obtaining the certification, the company will supply batteries for the MEB platform in mainland China. (From a press release dated July 13, 2021)
Great Wall  The Company announced that its subsidiary, Hefei Gotion High-tech Power Energy Co., Ltd. (Hefei Gotion), has recently signed a framework agreement with Chongqing Yongchuan Great Wall Auto Parts Co., Ltd. (Great Wall Auto Parts) to supply at least 10GWh of battery cells to the latter between 2022 and 2025. The supply in 2022 should be no less than 2.5GWh. Both parties pledged to keep a sufficient demand and supply within the scope of annual dimension which represents the agreed annual minimum quantity. (From a press release dated November 23, 2021)
JEMSE The Company has signed a strategic partnership agreement with Argentina’s Jujuy Energía y Minería Sociedad del Estado (JEMSE). Under the agreement, Gotion High-tech and JEMSE will jointly build a battery-grade lithium carbonate refinery in Jujuy Province. JEMSE will provide exploration and mining rights for lithium minerals over an area of about 17,000 hectares and ensure resource supply. The two parties will also cooperate in downstream areas such as cathode materials and battery manufacturing to jointly develop in the European and American markets. (From a press release dated May 9, 2022)
Qinghai Salt Lake Industry Co., Ltd.  The Company announced that it had signed a cooperation framework agreement with Qinghai Salt Lake Industry Co., Ltd. (Salt Lake Industry), in which the two parties will conduct in-depth cooperation in the fields of new energy, lithium batteries, scientific R&D, lithium magnesium materials, personnel training, etc. According to the agreement, the two parties will launch comprehensive cooperation relating to the lithium battery industry chain by establishing joint ventures that produce cathode battery materials and energy storage batteries, including lithium iron phosphate. The proposed joint ventures will hold shares in one another and conduct in-depth cooperation, forming a stable system of the new energy industry chain. In addition, the two parties will cooperate in the field of new materials such as magnesium-aluminum and magnesium-lithium alloy relying on Salt Lake Industry’s rich magnesium resources, and explore the feasibility of jointly setting up an R&D platform of new products and technologies in Hefei.(From Gotion High-tech’s official WeChat account dated December 14, 2021)
VinFast reported that Gotion High-tech Co., Ltd. (Gotion High-tech) and Vietnam VinFast held a strategic cooperation signing ceremony to ink a Memorandum of Understanding to jointly conduct research, development and production of LFP (lithium iron phosphate) batteries, and study plan to build the first Gigafactory for LFP battery cell production in Vietnam. LFP batteries are currently the most popular battery technology in the global EV market, with outstanding points in safety, long life, as well as no use of rare materials, limited supply, or limited exploitation. LFP batteries have competitive costs and are suitable for automobile models, especially small and medium sized EVs. (From an article of dated August 23, 2021)
Institute of Advanced Technology at the University of Science and Technology of China The Company announced that it has signed strategic cooperation agreement with the Institute of Advanced Technology at the University of Science and Technology of China. Both will collaborate on commissioned development, joint development and project management in advanced technology areas including lithium batteries and energy utilization, and conduct research on bio-based materials, green manufacturing processes, comprehensive use of clean energy, and new additives. The organizations will also cooperate in other areas including human resource development. (From a press release dated August 20, 2021)
Jiangxi Special Electric Motor Co., Ltd. The Company announced that it has entered into a strategic alliance with Jiangxi Special Electric Motor Co., Ltd. (Jiangxi Special Electric Motor). Jiangxi Special Electric Motor will supply more than 500 tons of lithium carbonate per month for batteries to Gotion High-tech. In addition, both companies will explore the possibility of strengthening their partnership in areas such as purchasing and storage of lithium carbonate for batteries and motors for New Energy Vehicles. (From a press release dated September 13, 2021)



Zhejiang Geely New Energy Commercial Vehicles Group Co., Ltd. The Company announced that its wholly-owned subsidiary, Hefei Gotion High-tech Power Energy Co., Ltd. (Hefei Gotion), has signed a strategic partnership agreement with Zhejiang Geely New Energy Commercial Vehicles Group Co., Ltd. (Geely Commercial Vehicles). Under the agreement, Hefei Gotion will supply about 126,000 sets of EV battery products to Geely Commercial Vehicles from 2022 to 2024. The products cover three categories: small vans, light-duty trucks, and extended-range vehicles. (From a press release dated April 20, 2022)
A major listed U.S. automaker The Company announced that Gotion, Inc., the company’s whollyowned subsidiary in the U.S., has become the supplier of a major listed U.S. automaker (hereinafter referred to as the Client). Gotion, Inc. and the Client recently signed a Strategic Supply and Localization Agreement, under which the two parties plan to form a strategic partnership in the supply and procurement of lithium-iron phosphate (LFP) batteries. According to the agreement, Gotion, Inc. will export LFP batteries from its manufacturing sites in mainland China to ensure the quantity of LFP batteries required by the customer from 2023 to 2028. The Client is expected to purchase no less than 200GWh of LFP batteries from Gotion, Inc. during the foresaid period. Additionally, both parties plan to localize the production and supply of LFP batteries in the U.S. and jointly explore the possibility of establishing a joint venture in the future. These LFP batteries will be used by the Client for its electric vehicles and other applications in the U.S. and global markets. (From a press release dated December 20, 2021)
Leapmotor The Company announced that it formed a partnership with Zhejiang Leapmotor Technology Co., Ltd. (Leapmotor) to supply the latter with cells. The supply process has already been started. Gotion High-tech also plans to begin delivery to Changan Automobile, Great Wall Motor, Immotor, etc. to equip relevant models in 2021. The supply to the Changan Benni is expected to be launched in late May, while cell samples for equipping the ORA have been submitted for confirmation by Great Wall Motor. Production will be initiated soon. (From a press release dated May 17, 2021)
Ruichi Automotive The Company announced that it has supplied lithium iron phosphate batteries for the first five EC35 II New Energy Vehicles of Chongqing Ruichi Automotive Industry Co., Ltd. (Ruichi) for export to Germany and Pakistan. The battery’s management system can protect batteries effectively and allows a large battery operating temperature range, using natural cooling and thermal film technologies, which can be used under minus 30 degrees centigrade environment. (From a press release dated April 20, 2021)


Acquisition of Bosch's subsidiary

-The Company announced that it has signed an agreement with Robert Bosch GmbH (Bosch). Gotion High-tech will acquire 100% of the assets and shares of Robert Bosch Aftermarket Solutions GmbH located in Goettingen, Germany, and will build the first European new energy production site for Gotion High-tech. Established in 1960, the plant covers an area of over 170,000 square meters and has a total floor area of 40,000 square meters. It currently has about 300 employees. (From a press release dated July 16, 2021)


New company

-Anhui Annada Titanium Industry Co., Ltd. (Annada) announced that its subsidiary Tongling Nayuan Material Science and Technology Co., Ltd. (Tongling Nayuan) intends to team up with Hefei Gotion Kehong New Energy Technology Co., Ltd. (Hefei Gotion Kehong), a subsidiary of Gotion High-tech Co., Ltd. (Gotion High-tech), to set up a joint venture tentatively named Tongling Anxuanda New Energy Materials Co., Ltd. in Tongling City, Anhui Province. With a registered capital of CNY 150 million, the joint venture will engage in the research and development, production and sales of iron phosphate and other chemical products. Tongling Nayuan contributes CNY 97.5 million, accounting for 65%; while Hefei Gotion Kehong cotributes CNY 52.5 million, accounting for 35%. In addition, the joint venture will invest in the construction of a high-performance iron phosphate project with an annual production of 50,000 tons. Involving a total investment of CNY 316 million, the first phase of the project will be completed in 12 months. Upon completion, its annual operating income is expected to be around CNY 1.13 billion. (From a press release dated April 15, 2022)

-The Company announced that it will set up two sub-subsidiaries to expand its business in upstream raw materials of lithium batteries and battery recovery and further reduce production costs. The two subsidiaries will be established under Hefei Gotion High-tech Power Energy Co., Ltd. (Hefei Gotion), a wholly owned subsidiary of Gotion High-tech. Each subsidiary will have a registered capital of CNY 50 million, both 100%-owned by Hefei Gotion. (From a press release dated March 11, 2021)


New Products

-The Company announced the unveiling of a single-cell lithium iron phosphate (LFP) battery with an energy density of 210Wh/kg and a JTM (jellyroll-to-module) battery at the 10th Gotion Technology & Supplier Conference. The 210Wh/kg LFP battery adopts Gotion High-tech’s proprietary high-capacity cathode materials and anode materials made of low-expansion silicon. These materials will enable the wide application of pre-lithiation technologies in battery manufacturing. The JTM battery consumes fewer materials and simplifies the manufacturing process, and its technology enables the raw materials to be rolled up for quick assembly of battery modules or packs. (From a press release dated January 11, 2021)

R&D Expense

(CNY millions)
FY ended Dec. 31, 2021 FY ended Dec. 31, 2020 FY ended Dec. 31, 2019
R&D expense 1,166.63 695.66 588.15
Ratio of R&D expenses to Sales 11.27% 10.35% 11.86%

R&D projects

Project name Purpose Progress
Development of 50Ah monocrystalline low-cost battery cell Development of low-cost cells to strengthen sustainable competitiveness of ternary lithium battery products. Completion of technical approval examination and start of mass production
Development of 50160116100Ah lithium ion iron cell Development of long-cycle, low-cost energy storage cells. Start mass production

R&D Centers

-The Company focuses on research and development of automotive lithium batteries. It has established R&D centers in Shanghai and  Hefei in China; Tsukuba City, Japan; Singapore; and Silicon Valley and Cleveland, U.S.A. It has a Chinese state-certified enterprise technology center, a Chinese national post-doctoral scientific research workstation, a Chinese national-class CNAS-approved laboratory, an Anhui Province academician workstation, and an Anhui Province engineering laboratory.

-The company announced the establishment of its Tangshan Engineering Research Institute. Backed by Gotion High-tech Engineering Research Institute Headquarters, the Tangshan Engineering Research Institute will conduct all-round research on battery materials, battery manufacturing processes, battery modularization, product failure mode analysis and prevention, and product performance testing. (From a press release dated October 25, 2021)


-In FY12/21, the company has applied for a total of 5,341 patents, of which 2,451 are related to inventions (including 143 foreign patents), and 915 in 2021.

-The company's patented technologies mainly relate to battery cells, battery cell structure design, cell fabrication processes and equipment, BMS, PACK, testing and evaluation, dismantling and recycling, and energy storage.