One of the top battery producers in China, EVE Energy, stated that it will invest US$422.3 million in a project in Malaysia. In order to meet the increasing demand for electric two-wheelers in the area, the company wants to manufacture cylindrical batteries of the 21700 type locally.

The investment strategy was authorized by the board of directors of EVE on Thursday. An statement states that the battery manufacturer will carry out the project through its wholly owned subsidiary EVE Energy Malaysia.

According to EVE, the project would be finished in stages over the course of three years, with a maximum cost of US$422.3 million. For Southeast Asian producers of electric two-wheelers and industrial tools, the business will make 21700-type ternary batteries in Malaysia.

EVE placed seventh in China’s September EV battery installation with 0.74GWh, according to data from the China Automotive Battery Innovation Alliance. 2.4% of the national market was made up of it. The top two companies on the list, CATL and BYD, accounted for nearly 70% of the market in December.

EVE has boosted its investment in the second half of this year as the need for batteries from EVs and energy storage systems (ESS) continues to rise. China-based STCN claims that the business declared its intention to form a joint venture with two manufacturers of lithium products in Hunan in July. The group plans to invest CNY3 billion (US$413.9 million) on a project to produce 90,000 tonnes of lithium salt annually.

Additionally, according to STCN, EVE intends to construct a production facility in Shenyang to manufacture batteries for EVs and ESSs. A 40GWh annual output capacity is anticipated from the CNY10 billion project.

In addition to expanding its production footprint, EVE has increased its investment in battery materials. The company revealed at the end of September that it will increase its support for BTR, a material manufacturer based in Sichuan, by CNY884 million.

EVE, on the other hand, has published a sneak peek of its third-quarter profit results. The company projects a net profit of CNY1.08 billion to CNY1.29 billion, up 50% to 80% from the previous year.

According to the preview, the company’s net profit for the first nine months of 2022 will probably exceed CNY2.43 billion and increase by at least 10% from the previous year.

EVE said that it changed product prices as a result of rising material costs. In order to grow shipment quickly, the corporation has also started up additional factories and production lines. As a result, for the first three quarters of 2022, its revenue and battery business profits increased by 110% over 2021.

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