Electric vehicle (EV) battery maker SVOLT has completed a B+ round of financing worth 6 billion yuan ($942 million) on December 11, with investors including Sichuan Energy Investment, Hans Laser and Xingyu Lighting, CDH Investments, Industrial Bank and others.
“The 6 billion yuan raised by this round of financing will be mainly used for R&D and to build a Changzhou Phase IV production base, Changzhou R&D center and Changzhou headquarter management center,” Yang Hongxin, chairman and CEO of SVOLT, said.
SVOLT, established in December 2016, is a new energy technology company specializing in R&D, trial production, testing, mass production of automotive batteries and raw material production. Since April last year, SVOLT has completed four consecutive rounds of financing totaling 20.78 billion yuan.
On December 8, three days before the financing round, SVOLT released an ‘SV 600’ strategy, whereby it plans to raise 600GWh in production capacity by 2025.
At the beginning of this year, when SVOLT received A round of financing worth 3.5 billion yuan, Yang Hongxin publicly stated that the company planned to achieve a global production capacity of 200GWh in 2025. After less than one year, SVOLT’s capacity target for 2025 has been raised from 200GWh to 600GWh.
Industry institutions predict that by 2025, the total demand for lithium batteries – used for electrification in transportation and energy storage in power – will exceed 1.8 TWh. SVOLT aims to occupy 25% of the global market share, and challenge the global capacity target of 600GWh according to a 75% capacity utilization rate.
At present, SVOLT’s market share is only about 1.9%, which is obviously far from its goal of holding a 25% global market share in 2025.