CALB set to become a top EV power provider

Chinese power battery maker CALB will launch more technologies and products in becoming one of the world's top three providers in terms of installation volume, company CEO Liu Jingyu said last week.

At CALB's global partner conference at its headquarters in Jiangsu province's Changzhou city, Liu said cost reduction in the power battery industry has just begun, and the company aims to achieve a top three installation volume worldwide through ongoing innovation for performance and cost efficiency.

The Hong Kong-listed company achieved 3.6 gigawatt-hours of installation volume in September, ranking fourth among global battery makers for the first time, according to SNE Research data. In China, its installation volume has risen from the ninth position in 2018 to third now, after CATL and BYD.

Dai Ying, senior vice-president of CALB, said the power battery industry is anticipated to undergo a golden decade. He noted that despite being in the early stages of development, the industry has not yet reached a mature, stable and healthy state, largely due to the fluctuating prices of upstream materials.

The price of lithium, a crucial material for electric vehicle batteries, has experienced fluctuations over the past two years, driven by increased investor attention in the new energy vehicle market.

CALB's batteries have been installed in Chinese EV startups such as Nio, Xpeng and Leapmotor, major Chinese automakers including Changan, Geely and GAC's Aion, as well as global brands. According to Dai, the company's semi-solid batteries are scheduled to be installed in a foreign luxury brand's models in the fourth quarter of 2024, boasting a 10-minute charge that allows a maximum range of 1,000 kilometers.

Additionally, the company plans to start mass production of its 46 Series 6C-rate large cylindrical batteries in the fourth quarter of 2024. They can charge 80 percent in 10 minutes. Its 5C battery will also be mass produced and installed in high-end brands in 2024.

Considering the overcapacity of the power battery industry, CALB has strengthened its energy storage business with the Chengdu facility in Sichuan province and production lines in Wuhan, Hubei province; and Jiangmen, Guangdong province. In 2022, its energy storage shipments reached around 2 GWh, and in the first half of this year, revenue from energy storage batteries continued to experience significant growth.

The company went public in Hong Kong in 2022 and is preparing for additional initial public offerings on other markets in the future, according to Dai. At last week's conference, CALB signed cooperation agreements with six domestic and foreign banks, laying the foundation for future international expansion, the company said.

In 2022, it started construction of its first overseas factory in Portugal, which is expected to commence production by the end of 2025, with an initial annual capacity of 15 GWh.

Zheng Xiang, head of CALB's Portugal factory, said given the high market penetration in China, the company recognized the significant opportunities arising from the markets in Europe, the United States and Southeast Asia. The overseas facility will promote local development and serve overseas customers, he said.