SVOLT obtains 5.1 billion yuan financial support for Huzhou base construction

Shanghai (Gasgoo)- SVOLT Energy Technology (Huzhou) Co., Ltd., a majority-owned subsidiary of Chinese power battery maker SVOLT, signed an agreement with a bank consortium on Nov. 29 for a 4.5 billion ($629.353 million) worth of loan and a funding support of 600 million yuan ($83.914 million), which will be used to enlarge SVOLT's battery production capacity.

According to a post on SVOLT's WeChat account, the aforesaid bank consortium is composed of such banks as China Merchants Bank, Industrial Bank Co., Ltd., China Construction Bank, and Shanghai Pudong Development Bank. The loan will be mainly used to support the construction of SVOLT's manufacturing base in Huzhou city, Zhejiang province.

Photo credit: SVOLT

According to SVOLT's planning, the company will build the Huzhou project into a digital, intelligent, and low-carbon lighthouse plant that features a designed power battery production capacity of 30GWh per year.

Notably, the latest move came after SVOLT got a 7.5 billion yuan ($1.049 billion) loan (including 535 million yuan worth of funding) by signing an agreement with another bank consortium on Oct. 31, 7 billion yuan ($978.994 million) of which will be poured in the construction of SVOLT’s factory in Suining city, Sichuan province, and relevant equipment procurement. The Suining base started operation on the same day, a key step that would allow the company to step up its strategic deployment in Southwest China.

The battery maker carved out of Great Wall Motor filed a draft prospectus earlier this month for its initial public offering (IPO) and listing on the Science and Technology Innovation Board (the STAR Market) of the Shanghai Stock Exchange. It intends to raise 15 billion yuan ($2.098 billion) from the IPO, which is expected to lift SVOLT's market valuation to 60 billion yuan ($8.391 billion).