Gotion High-Tech Released GDR listed in Switzerland, Chinese Power Battery Makers Compete Globally
The international market is becoming a new battlefield for China power battery companies to compete.
With the acceleration of electrification in Europe and North America, since 2022, a large number of Chinese enterprises have begun to accelerate their "going global", through localized production capacity layout, international customer expansion, overseas supply chain resource deployment, zero-carbon transformation, technology and product output, etc. This dimension shows a strong Chinese potential.
Among them, as the earliest Chinese battery company to set foot in overseas layout, Gotion High-Tech has the most intensive actions.
On the morning of July 26, Gotion High-Tech released an announcement on the issuance results of Global Depositary Receipts (hereinafter referred to as "GDR"), with a total fundraising of approximately US$700 million, which is the largest GDR issuance project on the Swiss Stock Exchange since the implementation of the China-Europe Connect Rules.
According to the announcement, Gotion High-Tech, was issued the first batch of Swiss GDRs yesterday (July 25), and the final price of this issuance has been determined to be US$30 per GDR. The number of GDRs issued this time is 22.83 million, with an issuance scale of nearly US$685 million. It is expected to be officially listed on the SIX Swiss Exchange on July 28.
This move means that Gotion High-Tech will become the first Chinese power battery company to issue GDR overseas and list in Switzerland.
According to a Chinese media, Gaogong Lithium Battery Analysts believe that the issuance of GDR by Gotion High-Tech and its listing in Switzerland, on the one hand, is a manifestation of the deepening cooperation between China and Europe in the new energy industry, which can further expand its international financing channels and help Gotion High-Tech build a European market. And to provide financial support to its Europe factories and enhance its brand influence.
On the other hand, compared with the traditional China domestic A-share fixed increase financing or Hong Kong H-share listing, the financing approval for listing on the Swiss Stock Exchange is relatively fast and the financing risk is relatively low, which is conducive to the global layout of Gotion High-Tech .
In parallel with its overseas listing, Gotion High-Tech has also made substantial progress in the implementation of global localized production capacity, overseas customer expansion, and international supply chain deployment.
At the end of June, Gotion High-Tech started the construction of a planned 20GWh battery production base in Göttingen, Germany, followed by the Gotion High-Tech joint venture battery factory in Vietnam in early July.
The Chinese media, Gaogong Lithium Battery Analyst believes that with the deepening integration of Volkswagen and Gotion High-Tech, the comprehensive internationalization of Gotion High-Tech is being fully promoted, and it has shown uniqueness and differentiation. Compared with other Chinese power batteries makers, the internationalization of Gotion High-Tech is promoted simultaneously from multiple dimensions such as market, production capacity, product, technology, capital, supply chain, etc., and has achieved breakthroughs in key nodes in each of the above-mentioned links.
It is also based on this that Gotion High-Tech is showing a strong growth "stamina" in the competition around overseas markets.
1. The standard battery has been designated by the public, and international orders have "more blossomed".
The continued growth of electric vehicle sales in Europe and North America has created strong demand for power batteries, and China's leading battery companies with international supply capabilities and experience are becoming an important choice for more and more international OEMs to ensure stable battery supply.
In April this year, Gotion High-Tech announced that its ternary and iron-lithium standard batteries have been designated by Volkswagen, and will be equipped with new energy models of Volkswagen's latest platform, as well as MEB platform. A standard battery cell for Europe is currently being developed jointly with the Volkswagen German team.
In July, Hefei Gotion High-Tech announced to invest in the construction of a 20GWh mass standard battery project in Hefei Xinzhan High-tech Zone, which is expected to be available by the end of 2023.
At the same time, Gotion High-Tech also signed a "Memorandum of Understanding on the Strategic Partnership of Batteries" with Volkswagen. The two parties will build a zero-carbon emission factory in Europe and will jointly develop other potential production bases in Europe. The battery factory in Salzgitter, where Gotion High-Tech cooperates with Volkswagen, also officially started.
At present, Volkswagen has completed its strategic investment in Gotion High-Tech, holding 26% of its equity and becoming its largest shareholder. Gotion High-Tech will also continue to supply power batteries for the public to verify its product quality capabilities, technical research and development capabilities, large-scale mass production capabilities, and supply chain management capabilities, to develop more international customers for it, and to build overseas factories. lay the foundation.
In addition to Volkswagen, Gotion High-Tech has reached a strategic cooperation with the Vietnamese car brand VinFast and a large listed car company in North America in 2021, reached a strategic cooperation in the supply and procurement of LFP batteries, and discussed the establishment of a power battery factory in local cooperation. .
In addition to the automotive field, Gotion High-Tech's international business has further extended to the portable energy storage field at the To C end. At the end of June, Gotion High-Tech released the Gendock 3000 mobile energy storage power product in Europe. This product has a capacity of 3072Wh and an output of 3000W. It can not only connect most outdoor and indoor equipment, but also meet the needs of users in different applications. It can provide 822W The rated output power, and the multi-output interface design can be compatible with 99% of common electrical equipment.
This move means that the overseas business layout of Gotion High-Tech will further extend from the To B business to the To C user energy storage field, which will also open up a greater market imagination.
The dual promotion of power and energy storage business will provide guarantee for Gotion High-Tech's increase in installed capacity and market share internationally, and provide strong support for its participation in the global battery market competition.
2. Accelerate the expansion of global localized production capacity, and the overseas production capacity is planned to be 100GWh.
Behind the rapid growth of power battery demand in Europe and the United States, the construction of a local supply chain system is also increasing. The selection of suppliers by international OEMs is not only based on quality, cost and efficiency, but also includes zero carbonization, geographic diversification, and localization.
An obvious change is that since 2022, Chinese battery companies including CATL, Gotion High-Tech, EVE Lithium Energy, Envision Power and other Chinese battery companies have made new moves in their overseas layouts.
Among them, Gotion High-Tech's overseas battery capacity construction has entered the fast lane.
In June, Gotion High-Tech held a ceremony at its factory in Göttingen, Germany. The Göttingen base, as Gotion High-Tech's first battery production and operation base in Europe, started its R&D and manufacturing of battery products in Europe.
In July, a battery factory jointly built by Gotion High-Tech and VinES, a subsidiary of Vietnam's Vinfast Group, was established in Ha Tinh Province, Vietnam. Vietnam will build its first LFP battery factory, and VinFast will also focus on purchasing Gotion High-Tech's LFP batteries.
It is reported that the Göttingen base will be constructed in two phases to achieve the final production capacity target of 18GWh. The first-phase production capacity target is 6GWh, and construction will be officially launched at the end of this year, and it is expected that the first-phase production line of 3.5GWh will be officially put into operation in September 2023.
Gotion High-Tech accelerates the pace of "Made in Europe" by acquiring existing factories for transformation, in order to take the lead in realizing the localized production of its battery products in Europe, to seize the opportunity in the European market, and to accelerate the pace of its global battery capacity expansion .
In addition to bases in Europe and Vietnam, Gotion High-Tech also plans to establish battery production bases in South Asia, North America and other places to provide its international customers with nearby facilities.
At present, Gotion High-Tech has built 10 production bases in Hefei, Lujiang, Nanjing, Liuzhou, Yichun, etc., and plans to achieve a lithium battery production capacity of 300GWh by 2025.
Among them, the planned overseas production capacity is 100GWh. This means that overseas bases will become an important support for Gotion High-Tech's global battery capacity layout.
3. Strengthen the layout of lithium ore resources and build a complete global supply chain.
In order to ensure the smooth construction and release of global production capacity, Gotion High-Tech is also actively building a global supply chain system. Among them, overseas lithium ore resources have become an important part of Gotion High-Tech's global supply chain layout.
At the end of June, Argentine President Alberto Fernández met with Gotion High-Tech Chairman Li Zhen and his delegation at the presidential residence in Olivos, expressing support for Chinese investment in Argentina, and highly praised Gotion High-Tech's various industrial investments will promote Argentina's new energy industry develop. The two sides also conducted friendly exchanges on topics such as the "dual carbon" strategy, the new energy vehicle industry, and the "Sustainable Transportation Act".
According to the plan, Gotion High-Tech signed a cooperation agreement with Jujuy National Energy and Mining Corporation (JEMSE), Argentina, and the two parties established a joint venture company to plan and construct in Jujuy Province (the first phase with an annual output of 10,000 tons, the second phase with an annual output of 5 10,000 tons) battery-grade lithium carbonate production line, further promoting the implementation of its supply chain globalization strategy.
At the same time, Gotion High-Tech is also discussing the feasibility of establishing a joint venture with Corven, a well-known auto parts manufacturer in the Americas, to produce electric bus batteries and directly enter the application market from upstream raw materials.
In China, Gotion High-Tech is also strengthening the industrial layout of domestic lithium ore resources, and is currently accelerating the construction of lithium carbonate projects in Yifeng, Fengxin and other places.
Up to now, the layout of Gotion High-Tech in upstream materials has covered most of lithium, cobalt, nickel, precursors, ternary materials, LFP materials, lithium titanate, cathodes, anodes, copper foils, separators, electrolytes, additives, etc. Lithium battery production raw materials. Through the above layout, Gotion High-Tech has basically built a complete lithium battery supply chain to provide guarantee for its global battery capacity expansion.
4. Overseas GDRs are listed in Switzerland, broadening financing channels and accelerating internationalization.
At present, Gotion High-Tech has completed the issuance of the first batch of Swiss GDRs for CEIBS, and is expected to be officially listed on the SIX Swiss Exchange on July 28.
Through this overseas listing, Gotion High-Tech's overseas financing channels will be further expanded, effectively supporting its overseas production capacity expansion and market development, and its globalization strategy will also be fully implemented.
The Chinese media, Gaogong Lithium Battery Analyst has learned that at present, there are some Chinese companies including Gotion High-Tech, ShanShan, Keda China, Sunwoda, GEM and other lithium battery industry chain companies are pursuing for overseas GDRs. The above lithium battery companies want to take this opportunity to further expand the company's financing channels, speed up financing, and enhance the influence of international brands.
The overseas issuance of GDR by Gotion High-Tech and its listing on the SIX Swiss Exchange will provide financial support for its overseas battery capacity construction and market development, and further accelerate its international strategic layout.
Facing the new cycle of TWh, competition in the international market will become the next biggest variable in the field of power batteries. With its forward-looking layout in international customer development, localized production capacity deployment, global supply chain construction, and international capital docking, companies like Gotion High-Tech will show its strong growth potential in future global market competition.
Resources: Gaogong Lithium Battery Analyst
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