Geely gets more ambitious, setting aside $4.6 billion to go to an electric car battery plant

Geely plans to invest around $5 billion. The money will go towards developing an electric vehicle battery plant to be in Ganzhou, China. It is no secret that the country is the largest vehicle market in the industry. Equally important, Geely is China’s best carmakers owned privately. Geely is banking on the country’s enormous demand to meet its ambitions as far as the electric vehicle industry is concerned. The local government announced this investment worth 30 billion yuan, equivalent to $4.6 billion. In addition to that, the statement also says that its capacity will be 42 gigawatt-hours per year. Its capacity is similar to that of the proposed factories built in Germany by Volkswagen (VLKAF).

Geely confirmed the local government authority announcement via WeChat by announcing the agreement they signed. It also talked about how it has collaborated with a local battery company, Farasis Energy, to be precise. One must say that it is an area worth investing in, no doubt. After all, S&P Global Platts has some data showing how bright its future is. It shows that the number of electric car sales will be over six million in China by 2025. Consequently, there will be a rise in demand for electric vehicle batteries.

Globally, most governments have come up with policies of massive adoption of electric vehicles to deal with climate change. Therefore automakers are working extensively to make electric vehicles to facilitate the transition. A good example is China which is pushing for clean energy cars in efforts of dealing with pollution. Over the years, there has been competition between local automakers and foreign ones, and it keeps getting stiffer each passing day.

Two months ago, Geely made yet another huge announcement. It was about collaborating with Baidu, the most popular search engine in China, to develop intelligent electric vehicles. It added that it was planning to change from an automaker to a tech company. However, its operation sector wouldn’t change much as it would be about providing intelligent and electric transport. In January, it also announced collaborating with other giant companies such as Tencent and Foxconn, an Apple supplier.

On the other hand, Tesla seems to be in hot soup. For quite some time, it has been leading in the Chinese electric cars market. As a matter of hand, it went as far as building a big factory in Shanghai. That said and done, February was a tough month for the company, no doubt. It had to answer questions related to its EVs quality to up to five regulatory agencies in China. According to BYD, it is no longer the top-selling brand as far as electric vehicles are concerned.

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