China published the ninth version of its COVID-19 prevention and control protocols on Nov. 11. The most recent adjustments were outlined in a notice which laid out 20 key measures, ranging from quarantine to risk categorization policies such as shortening quarantine time, limiting contact, and managing the country’s resources more efficiently. These measures are intended to minimize the impact of the epidemic on an economy already struggling with supply chain disruptions and other challenges. China’s Q3 2022 GDP growth dropped to 3%, while the manufacturing PMI fell to 49.2 in October. The impact of COVID-19 is still being felt in the macroeconomy, especially in the manufacturing industry, although investments remain high.
Here are some new investments and projects that were recently announced:
Dongfeng Motor Corp. kicked off a new $1.67 billion investment cycle to build capacity for producing 30-GW power batteries. The project will become a new energy power battery hub, integrating power battery cells, modules, R&D, production, and sales, which will boost Hubei’s automotive supply chain.
BMW will carry out a large-scale expansion of its Shenyang battery production base. Investments are worth $1.39 billion, which will be a crucial step for BMW to accelerate electrification in China. The new power battery project follows the BMW iFACTORY principles of green, lean, and digital. The Shenyang facilities have become the world’s largest production base for BMW. BMW delivered about 592,900 BMW and MINI vehicles to Chinese customers in the first three quarters of 2022. BMW's EV battery business increased by 65% YOY in China, while plans are to keep growing production to supply up to 13 BMW models by 2023.
Jiangsu-based Aerospace Lithium Technology Co. Ltd. announced a $4.12 billion investment in the Lithium Iron Phosphate Cylindrical Cell Industrial Park Project in Tai An, Shandong. The project takes the battery as the core, covering cathode materials, negative electrode materials, diaphragm materials, electrolyte materials, and other supporting industries to build a lithium battery production facility. The project’s first phase comprises 10 production lines of 5-GW lithium iron phosphate batteries, with investments of around $417 million. Plans are to achieve a production capacity of 50-GW by 2024.
The Digital Elevator Industrial Park, in which Midea's Building Technologies division has invested, has officially settled in Nanhai, Guangdong Great Bay Area, and includes a sheet metal smart manufacturing center and a smart shipping center, as well as facilities for parts processing and an office building complex. Total investment is around $1.38 billion, with plans to increase production capacity of multi-model elevators, escalators, and components to 30,000 units a year.
VEM Electric Motor, a subsidiary of VEM Group in Dresden, Germany, will invest $146 million in Wuxi, Jiangsu, to manufacture high-end electric motors, control systems, and wind power generators.
LONGi Green Energy Technology Group will invest $968 million in Erdos, Inner Mongolia, to produce monocrystalline silicon solar cells, increasing capacity by 30 GW. LONGi is a publicly traded company listed on the Shanghai stock exchange and one of the leading players in the photovoltaic segment.
Jiangxi Sunpin Technology announced a new investment of $415 million in Ping Xiang, Jiangxi, to manufacture EV components by giga-casting. Plans are to purchase 40 sets of die-casting machines, 300 sets of machining centers, coating lines, and ancillary equipment.
Keyang Electric Motor Science & Technology has announced investments of $44 million in Huzhou, Zhejiang, to produce motors. Expected annual output is around 200,000 units for new electric vehicles.
For more information, please contact Fred Qian at fredqian@AMTchina.org.
