Four Leading Power Battery Companies Are Making Consolidated Deployments in Yuxi of Yunnan.

In the middle of February,Eve Battery,YunTianhua,and SemCorp simultaneously made announcement that Eve Battery,YunTianhua,SemCorp and Huayou Holdings Ltd.entered into “Cooperation Agreement On The Whole Industry Chain Project of New Energy Battery” with Yuxi Municipal Government of Yunnan Province.The Agreement mainly involves two key points:1.The aforesaid five parties will jointly establish two companies,one engaged in mineral resource development and the other engaged in mineral deep processing.The two joint ventures will be controlled by Yuxi Municipal Government,with the other parties holding shares in proportion.2.Eve Battery,YunTianhua,SemCorp and Huayou Holdings will construct supporting battery projects in Yuxi including new energy battery,lithium battery isolation membrane,iron phosphate and lithium iron phosphate,copper foil project,centering on target mineral resource of Yuxi.Those projects are dominated by the party with industrial advantages,and the other parties are allowed to control shares appropriately.The aforesaid 4 companies plan to complete the investments by three phases,of which the investment of phase 1 and phase two is RMB 51.7 billion,i.e.RMB 18.05 billion to be completed by December,31,2023,and RMB 33.65 billion to be completed by December,31,2025.The investment of phase 3 will be completed by 2030.

The aforesaid 4 companies have already been closely connected with each other in business.For instance,Eve Battery and SemCorp established a joint venture in Jinmen,Hubei;Eve Battery purchased the shares of Huayou Cobalt that is affiliated to Huayou Holdings at the price of RMB 1.8 billion;SemCorp purchased 76.36% share of Newmi Tech that is affiliated to Yuntianhua.The 4 companies are inseparable.The huge investment planned in Yuxi is mainly devoted to making deployments in two aspects:1.Yuxi is rich in mineral resources,lithium ores in particular;2.Unity is strength.These non-leading power battery companies join hands together,which obviously indicates their intention to stand up against leading companies.