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BYD invests $4.2 billion in lithium projects in Jiangxi province

15. June 2023

Chinese EV manufacturer and battery producer BYD plans to invest the equivalent of US$4.2 billion in various projects in Yichun, Jiangxi province. The group’s battery division’s plan includes the annual production of batteries totaling 30 GWh, a lithium carbonate plant with an annual output of 100,000 tons, and the expansion of lithium mining sites. This information was provided by Chinese news portal Caixin Global based on a publication from the local provincial government. Battery-related products often require CCC certification to be approved for import and operation in China.

BYD is the third major battery company to invest in Yichun’s lithium industry after CATL and Gotion High-Tech. The lithium deposits in Yichun are present as the widely occurring mineral lepidolite. According to data from Yichun’s official website, mining companies extracted more than 83,000 tons of lithium carbonate from lepidolite last year, accounting for about 28 percent of China’s total production. Among them, lithium carbonate is mainly used for the production of cathodes in lithium iron phosphate batteries. In April and May of this year, the aforementioned three companies secured additional mining rights of lithium-bearing rock in Jiangxi province.

In March 2022, BYD acquired a 5 percent stake in Shengxin Lithium Group, China’s leading lithium miner, as a strategic partner with more than $415 million. A few months later in July, BYD bought a 2.11 percent stake in Anda Energy, a lithium iron phosphate producer, making it the ninth largest shareholder. Even before the planned expansion of lithium production in Yichun, BYD announced an expansion of its production capacities. Thus, another five projects are to be advanced and the annual production is to be expanded to 172 GWh. According to South Korean research institute SNE Research, BYD brought batteries with a capacity of 24 GWh to market in the first half of 2022. This represents a global market share of 12 percent and a rise from fourth to third place among the world’s largest battery manufacturers.

Vehicles and components such as batteries of EVs must be awarded a CCC certificate in order for the products to be exported to China or manufactured locally. CCC certification is a complex project that requires professional supervision at all stages. For several years, MPR China Certification GmbH has been entrusted with large CCC projects for the vehicle manufacturers Lotus, Tesla and Bugatti. We will be pleased to provide you with non-binding advice on the scope and requirements of a China CCC certification.

MPR Author

About the author: Julian Busch is founder and managing director of MPR China Certification GmbH
Publisher: MPR China Certification GmbH

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