BYD New Construction! 12 GWh Annual Production Capacity Power Battery Project

(Source: Battery Industry Network)

Our report: Recently, the Ecological Environment Bureau of Sheyang County, Yancheng City, announced the acceptance of the environmental impact report for a construction project. The Yancheng Fudi Automotive Power Battery Project (Phase 3, annual production of 12GWh automotive power batteries) has been approved.

The project is located on the south side of Xingfu Avenue and the west side of S226 in Jiangsu Sheyang Economic Development Zone, Yancheng City, Jiangsu Province. The total investment is 4.5 billion yuan. The construction company is Yancheng Fudi Battery Co., Ltd., a subsidiary of BYD’s Fudi Battery. Main construction includes battery/aluminum shell production equipment, production workshops, battery resting warehouses, auxiliary material warehouses, public supporting facilities, and environmental protection facilities. Once completed, it will have an annual capacity of 12GWh for automotive power batteries.

01 Hundred-billion-yuan base accelerates completion

Data shows that Yancheng Fudi Battery Co., Ltd. was established in 2021 and is the first BYD blade battery manufacturing base established at the county level nationwide. In August of the same year, Yancheng Fudi Battery Co., Ltd. was founded, with business scope including battery manufacturing, battery sales, new material technology R&D, synthetic material sales, etc. In the same month, the Fudi Battery Yancheng project was launched, and four months later, the project’s construction engineering design plan was approved.

Currently, BYD Yancheng Fudi Battery Co., Ltd. has become one of BYD’s largest power battery production bases, with a planned three-phase project.

The first phase has a capacity of 15GWh/year for automotive power batteries, with a total investment of about 7.5 billion yuan, expected to pass independent acceptance in 2024; the second phase also has a capacity of 15GWh/year, with a simultaneous PACK production line, conductive agent configuration line, and electrolyte production line, with a total investment of about 3 billion yuan, currently under construction; the third phase will produce 12GWh/year of automotive power batteries, with a total investment of about 4.5 billion yuan, and environmental impact assessment just accepted.

After the completion of all three phases, Yancheng Fudi will have an annual output of 42GWh of automotive power batteries, 121.6 million aluminum shells, 8,456 tons of conductive agents, 83,166 tons of electrolytes, and 80,728.767 tons of NMP distillation capacity, forming a complete industry chain centered on cells, including supporting modules and key materials.

Before the public announcement of the Phase 3 project in Yancheng, BYD’s other expansion actions include Zhengzhou Fudi, Wuzhou Fudi, Taizhou Fudi, Weichai Fudi, Changsha Fudi, Guangxi Fudi, and Shaoxing Fudi.

Zhengzhou Fudi added a new Zhengzhou power battery production line expansion project and a liquid-cooled plate production line construction project; Wuzhou Fudi’s BYD New Energy Power Battery Yangtze River Delta Manufacturing Center (Phase 3) was re-approved; Taizhou Fudi’s new energy power battery project was approved; Weichai Fudi (Yantai) new energy industry park Phase 1 officially started production; Changsha Fudi Battery Co., Ltd.’s PACK line expansion environmental impact assessment was approved.

Looking at the full-year plan, BYD’s battery production target for 2026 is set at 800GWh, second only to CATL’s 1.1TWh, far exceeding industry average expectations, with external supply share expected to rise to 15%. This not only boosts industry expectations for the new year but also depicts a rapid expansion of the lithium battery industry. According to incomplete statistics, the total disclosed investment in China’s lithium industry chain over the past year exceeded 820 billion yuan, a year-on-year increase of over 74%. Industry insiders expect that domestic lithium battery capacity additions will reach 750GWh this year.

The core drivers of lithium battery expansion come from explosive growth in end markets and updates in production lines.

On the demand side, by 2025, the demand for power and energy storage markets will begin to recover, with energy storage experiencing explosive growth. The demand rebound, combined with ongoing destocking, has significantly improved the supply-demand relationship of lithium batteries, reigniting companies’ enthusiasm for expansion.

On the technology side, fast charging and ultra-long range have become major selling points for new energy vehicles. Energy storage is also accelerating toward long-term storage. High-rate, high-energy, ultra-cycling, and large-capacity are emerging trends in lithium battery development, making the layout of new-generation products urgent.

Driven by these dual factors, a new wave of lithium battery capacity expansion has already begun.

02 Major technological investments for mass production

Apart from the Yancheng project, BYD’s often “mysterious” Xixian base has also made key progress.

In January 2025, BYD acquired land for the Xixian base power battery project for 398 million yuan. Three months later, BYD purchased an adjacent plot for 375 million yuan to build BYD’s new energy vehicle parts project. Ten months later, the first production line of BYD’s new energy vehicle power batteries was put into operation. Now, this site is becoming one of the core production bases for the second-generation blade batteries.

Recently, there are reports that the BYD Xixian Base in Qinhan New City, Xixian New Area, has been selected as one of the first production bases for BYD’s second-generation blade batteries. The planned annual capacity is 16GWh, supporting about 700,000 new energy vehicles once completed.

The second-generation blade battery is a new product released by BYD earlier this month, marking the first major upgrade of the “blade battery” in six years.

It is reported that, supported by fast-charging technology, the second-generation blade battery can achieve 10% to 70% charge in 5 minutes at room temperature and 10% to 97% in 9 minutes. Even at -30°C, charging time is only three minutes longer than at normal temperatures.

This means the new generation of blade batteries solves two major challenges: fast charging over the full cycle and fast charging in extremely cold environments. It not only opens new growth avenues for companies but also shifts industry focus from mere “scale competition” to “value competition.”

Since last year, the lithium battery industry has completely exited a three-year downward cycle and entered a new stage of high-quality development. During this period, breakthroughs in solid-state batteries, sodium-ion batteries, fast-charging batteries, and high-capacity cells have occurred, with technological iteration speeds even surpassing market expectations.

For example, BYD recently responded to market concerns about the development progress of new battery technologies like solid-state and sodium batteries, stating that “sulfide solid-state batteries are expected to achieve small-scale production by 2027,” and “sodium batteries are in the third-generation product platform development stage.” Guoxuan Hi-Tech later announced on an interactive platform that its 2GWh all-solid-state battery production line design is basically complete. Zhongchuang Hang also mentioned that it has developed solid-state batteries for robots and aircraft, with an energy density of over 450Wh/kg, and plans to deliver thousands of units to robots in the fourth quarter.

2026 is expected to be a year of explosive growth in battery technology. Breakthroughs in battery technology and applications will undoubtedly accelerate the evolution of market competition patterns, allowing leading companies and those with core technologies to establish advantages through differentiated strategies in the new round of market competition.