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Ganfeng Lithium's Nanchang Battery Base officially breaks ground.
According to Nanchang Radio and Television Station, on December 16th, the GEMFEN Lithium Power (Nanchang) Lithium Battery Production Base commenced construction. Just over a year since the project was officially announced, the progress has been impressive.
The news reveals that the project is situated in a newly established Economic and Technological Development Zone, with plans to construct a new lithium battery research institute and production lines for 10GWh of new energy storage lithium batteries, 400,000 consumer-grade lithium batteries, and solid-state lithium-ion batteries. Upon completion, the project is expected to achieve an annual industrial output value of approximately 6 billion yuan, provide over 2,500 jobs, and become a leading domestic base for the research and manufacturing of new lithium batteries, integrating 3C digital lithium batteries, power storage lithium batteries, new solid-state lithium-ion battery cells, and PACK system integration.Jiangxi Ganfeng Lithium Technology Co., Ltd. (hereinafter referred to as "Ganfeng Lithium") Vice President Liu Ming stated, "The project is now under construction, with the factory construction for the first phase expected to be completed by September 2025. Equipment installation will be finished before the New Year, and the production capacity is expected to be in place by the end of 2025."October 30th last year,Ganfeng LithiumGanfeng Lithium plans to invest in the construction of a lithium battery production base project in the New and Expanded Economic and Technological Development Zone of Nanchang City. The project is divided into three phases. The first phase is to plan and build a 5GWh energy storage PACK battery production base, with an investment amount not exceeding 2 billion yuan; the second and third phases will build power battery and energy storage battery production bases in accordance with market conditions.At the end of August, during an investor relations event, Ganfeng Lithium indicated that the company has faced numerous new challenges in recent years, thus will exercise greater caution in project capital expenditures.In the lithium battery business sector, Ganfeng Lithium states that the company's current expansion plan for lithium battery production capacity is primarily for medium to long-term capacity planning. The company will gradually advance capacity construction based on market and demand conditions. In the future, the company's lithium battery business segment will avoid ineffective expansion and fierce competition, prioritizing cost optimization and stable operations. It will actively control the pace of capital expenditures and complete battery production capacity expansion in a high-quality manner.From the above project content, it appears that GANFENG Lithium Industry's overall production capacity plan for its Nanchang lithium battery base is basically set, with an estimated total investment exceeding 2 billion yuan.Additionally, to support the project construction, on September 26 of this year, Ganfeng Lithium announced that its控股 subsidiary, Nanchang Ganfeng Lithium Technology Co., Ltd. (hereinafter referred to as "Nanchang Ganfeng Lithium"), plans to introduce an industrial fund to increase its investment by 500 million RMB to be used for the construction of new energy projects. After the capital increase, Nanchang Ganfeng Lithium will hold a 16.67% equity stake, while the industrial fund will hold an 83.33% equity stake.It's worth noting that the buyback clause in this capital increase and expansion stipulates that if Nanchang Ganfeng Lithium Battery fails to go public within six years, Ganfeng Lithium will repurchase the equity of the industrial fund at the agreed-upon price.Additionally, Ganfeng Lithium has been actively expanding its overseas presence. In August of this year, Ganfeng Lithium announced plans to establish a joint venture with YIGIT AKU in Turkey. The joint venture will invest $500 million to construct a lithium battery plant in Turkey, capable of producing 5 GWh annually.
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