GAC Aion Builds Power Battery Mass Production Line

On July 21, Chinese media outlet Cailian Press learned from sources familiar with the matter that Aion, a new energy vehicle marque under Guangzhou Automobile Group (GAC Group), is currently establishing a power battery company to promote the industrial layout of self-developed batteries, realizing independent and controllable power battery supply.

Zeng Qinghong, the chairman of GAC Group, said at the 2022 World EV & ES Battery Conference that the company is now developing batteries and buying mine resources to build better consumer electric vehicles. He also said that at this stage, the cost of power batteries is high, and related raw materials are rising significantly. According to the executive, “The cost of power batteries has accounted for 40% to 50% or even 60% of building a new energy vehicle. Am I not working for CATL now?“

Aion was established on July 28, 2017. Since the launch of the first Aion S model in April 2019, the brand has successively launched a variety of new energy vehicle products such as the Aion S, LX, V and Y, covering different user groups of high, middle and low grades.

On July 18, Aion officially started pre-listing on the Guangdong United Assets and Equity Exchange, and has carried out an A round of funding. It is understood that the funds raised this time will be focused on the development of new products, the R&D of new-generation batteries and electric controllers, and core technologies such as intelligent driving, cockpit, ecology and capacity expansion.

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This capital increase aims to further open up financing on the basis of introducing strategic investors and completing employee equity incentives in March 2022.

The pre-listing round-A capital increase also indicates that Aion will be listed soon. At a financial report media event at the end of March this year, Feng Xingya, the general manager of GAC Group, said: “It is expected that Aion will complete the round A of financing in the third quarter. If comprehensive conditions permit, it will be listed at the right time next year.”