Gotion will build a 20 GWh per year power cell project in Hefei, Anhui and a 10 GWh per year project in Liuzhou, Guangxi.
Volkswagen-backed Chinese power battery giant Gotion High-tech plans to invest a total of RMB 11.5 billion ($1.6 billion) in two new battery projects to expand its production capacity.
Gotion plans to invest RMB 6.7 billion in the Xinzhan High-Tech Industrial Development Zone in Hefei, Anhui province, to build a 20 GWh annual capacity power battery project, according to an exchange announcement.
The project will have a ternary lithium-ion power battery production line and supporting systems to produce power battery cells, modules, packs and battery systems, according to the announcement.
The project is scheduled to be completed and start production 16 months from the date of construction, according to Gotion.
Gotion is committed to becoming a leading global supplier of lithium batteries, and the investment will help the company seize opportunities in the power battery market to further expand the scale of its ternary battery production capacity, it said.
In a separate announcement, Gotion said it will invest RMB 4.8 billion in Liuzhou, Guangxi to build a power lithium battery production base with an annual capacity of 10 GWh.
The base will have a lithium iron phosphate battery production line and supporting systems to produce power battery cells, modules, packs and battery systems, Gotion said.
The project is scheduled to be ready for production within 13 months from the start of construction, the company said.
The investment is designed to strengthen the company's presence in the power battery market in southern China and further expand its production capacity, Gotion said.
Gotion is one of China's largest power battery makers, ranking fourth in September with a 4.33 percent share, according to the China Automotive Battery Innovation Alliance (CABIA) earlier this month.
In a statement on October 5, Michigan Governor Gretchen Whitmer said Gotion has chosen to build a $2.36 billion battery component manufacturing plant in Big Rapids.
It is the largest economic development project ever undertaken in northern Michigan and will strengthen the state's position as a global hub for mobility and electrification, Whitmer said.
