Chinese automotive company BYD has started construction on new sodium-ion battery facility in Xuzhou, China, has reported.  

Being built with an investment of 10bn yuan, the new facility will have a projected annual capacity of 30 gigawatt-hours (GWh).  

The batteries produced at the facility will be used for electric vehicles (EVs), particularly micro vehicles and scooters. 

The ground-breaking ceremony took place on 4 January at the Xuzhou Economic and Technological Development Zone.  

The facility is part of BYD’s plans to diversify its energy storage solutions. 

The agreement to construct the Xuzhou sodium battery plant was signed by BYD subsidiary Findreams Battery and tricycle manufacturer Huaihai Group last November in Shenzhen.  

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The partnership is expected to transform Xuzhou into a battery production hub and will capitalise on the suitability of sodium-ion batteries for smaller EVs. 

Previously, BYD and Huaihai Group had collaborated on a standard battery facility in Xuzhou, with a focus on producing batteries with lithium iron phosphate (LFP) chemistry.  

For the LFP facility occupying 310,000m², the two companies invested around 10bn yuan. It is nearing completion, with trial production scheduled for this March. 

Sodium-ion batteries, often referred to as ‘salt’ batteries, are a cost-effective alternative to lithium-based batteries.  

They eliminate the need for lithium, cobalt, or nickel. However, their lower energy density makes them more suitable for specific applications such as scooters, small cars or stationary storage. 

Last March, South Korean giant LG announced plans to build a new battery manufacturing complex in the US with an investment of $5.5bn (Won7.25trn).  

To be located in Queen Creek, Arizona, it will include two facilities, one for producing LFP batteries for energy storage systems, and the other to produce cylindrical batteries for EVs.