EVE Energy, one of China's leading battery manufacturers, announced that it will invest US$422.3 million in a project in Malaysia. The company plans to produce 21700-type cylindrical batteries locally in response to the growing demand for electric two-wheelers in the region.
EVE's board of directors approved the investment plan in a meeting on Thursday. According to an announcement, the battery maker will execute the project through its 100%-owned subsidiary EVE Energy Malaysia.
The project will be completed in phases within three years, EVE said, and the total investment will not surpass US$422.3 million. The company will produce 21700-type ternary batteries in Malaysia to support electric two-wheelers and manufacturers of electric industry tools in Southeast Asia.
According to data from China Automotive Battery Innovation Alliance, EVE was ranked 7th in China's September EV battery installation with 0.74GWh. It accounted for 2.4% of the market share in the country. CATL and BYD, which topped the list, took up about 70% of the market last month.
As battery demand from EVs and energy storage systems (ESS) continues to grow, EVE has increased its investment in the second half of this year. According to China-based STCN, the company announced in July that it plans to set up a joint venture in Hunan with two lithium product makers. The trio aims to invest CNY3 billion (US$413.9 million) in a lithium salt project with an annual target production of 90,000 tonnes.
In addition, STCN reported that EVE plans to build a production base in Shenyang to make batteries for EVs and ESSs. The CNY10 billion project is expected to create a production capacity of 40GWh each year.
EVE has raised its investment in battery materials, besides building more plants. At the end of September, the company announced that it will add CNY884 million to its funding for BTR, a Sichuan-based material maker.
On the other hand, EVE recently released a preview of its third-quarter earnings performance. According to the company, its net profit will reach between CNY1.08 billion and CNY1.29 billion, a 50% to 80% growth from last year.
As for its net profit for the first nine months of 2022, the number will likely surpass CNY2.43 billion and grow at least 10% from last year, according to the preview.
EVE said it adjusted product prices due to the surging material costs. Moreover, the company has commissioned new factories and production lines to increase shipment rapidly. Therefore, its revenue and battery business's profits for the first three quarters of 2022 grew 110% from 2021.
