Shanghai (Gasgou) – Farasis Energy (Ganzhou) Co., Ltd. (“Farasis Energy”), a Chinese battery pack manufacturer whose main OEM customers include Mercedes-Benz, announced in mid-September 2021 its decision to raise funds to increase the capacity of its batteries.
According to the statement, the company intends not to raise more than 5.2 billion yuan ($ 816.468 million) by issuing no more than 140 million shares to up to 35 investors. Once the capital is secured, 4.6 billion yuan ($ 722.26 million) will be invested in the high-performance lithium-ion battery manufacturing project and the remaining 600 million yuan ($ 94.208 million) will be used as technological reserve fund.
Farasis Energy, the Wuhu Sanshan Economic Development Zone Management Committee signing the agreement; photo credit: Farasis Energy
The aforementioned battery manufacturing project is part of the cooperation that Farasis Energy formed with the Wuhu Sanshan Economic Development Zone Management Committee at the end of August. According to the agreement, the battery maker plans to build battery manufacturing lines with an annual capacity of 24 GWh per year in Wuhu City and appropriate support facilities.
The program will be implemented in two sub-projects. The first, which is involved in the aforementioned fundraiser, was scheduled to begin construction in October 2021 and be completed within 18 months, with the aim of training the capacity to produce 12 GWh batteries per year. The second will be launched at an appropriate time according to the new agreement of both parties and the demands of customers and the market.
Farasis Energy announced that it will build a new wholly owned subsidiary in Wuhu to take over the construction work.
As one of the world’s leading lithium-ion battery manufacturers, Farasis Energy supplies products for several NEV models from automotive manufacturers such as Daimler, GAC Group, Geely Auto, TOGG, Dongfeng Motor, Jiangling Motors and Great Wall Motor. . Existing factories at its headquarters in Ganzhou, eastern Jiangxi Province, and Zhenjiang, eastern Jiangsu Province, currently have a combined annual output of 13 GWh, which is expected to reach 21 GWh by the end of 2021. In addition, the company also mapped 8 GWh for the third phase of its Zhenjiang base.
Farasis Energy is experiencing rapid growth in orders for battery supplies. The company signed battery supply agreements with its strategic customers Daimler and Beijing Benz in late 2018, and later in April 2021, it began mass production of power batteries for Daimler car models.
Last year, Farasis Energy was appointed developer and supplier of battery power for the VOYAH H56 project, a global electric vehicle platform under the Dongfeng Motor Group. In addition, it also signed a strategic cooperation agreement with TOGG, a Turkish electric car manufacturer, to provide the latter with its battery power solutions and relevant services.
In 2021, the company received the Statement of Intent that GAC Mitsubishi and Liuzhou Wuling Motors have indicated that they are interested in letting Farasis Energy be their suppliers of power batteries or lithium battery systems.
Due to the inability of the existing capacity to meet the demands of its customers and the future incremental downstream market and the long construction period of the electric battery factories, Farasis Energy needs to build a new battery production base and improve the ability to supply to better serve customers and win more orders, the company says.
Farasis Energy and Geely Technology Group sign agreement; photo credit: Farasis Energy
In addition to building an independent battery base, Farasis Energy is also working with its customer, Geely Auto. In May this year, the company and Geely Technology Group signed an agreement to establish a joint venture working on the R&D, production and sale of lithium batteries, battery modules, battery module management system, charging system, as well as cathode and lithium battery. anode materials, electrolyte and separators.
The joint venture will be 65% and 35% owned by Geely Technology Group and Farasis Energy, respectively. After its founding, it will invest and gradually build manufacturing bases for NEV batteries in accordance with the capacity demands of Farasis Energy. The combined battery capacity of Farasis Energy and the joint venture is expected to reach 120 GWh, of which 20 GWh are expected to be built from this year.
In particular, Geely Technology Group inaugurated in March 2021 the first phase of its electric battery manufacturing base in Ganzhou, in Jiangxi province, with a capacity of 12 GWh per year. This project is also part of the aforementioned 20 GWh program.
SIRO, Turkish Ministry of Industry and Technology signing agreements; photo credit: Farasis Energy
Regarding the overseas deployment, SIRO, the umbrella company that includes Farasis Energy and TOGG, entered into a pact with the Turkish Ministry of Industry and Technology at the end of October to build battery manufacturing facilities of 20 GWh.
Scheduled to start in the second half of 2022, the operations of the SIRO plant will be advanced in two phases: in a first stage, the plant will focus on the manufacture of modules and battery packs, using cells offered by Farasis Energy ; battery production is the work of the second phase.