SAIC Motor signs agreement to build power battery production base in Zhengzhou city

Shanghai (Gasgoo)- On July 2, SAIC Motor signed a framework agreement with the municipal government of Zhengzhou city, the capital of Henan province, to establish a new energy vehicle (NEV) battery production base.

The initiation ceremony of the aforesaid power battery project took place in the Zhengzhou Economic Development Zone on the same day.

Photo credit: SAIC Motor

SAIC Motor's plans for NEV business expansion coincide with Henan Province's NEV industry development plans. At the Auto Shanghai 2023, SAIC Motor announced a "Three-Year Action Plan for the Development of New Energy Vehicles." The plan includes lifting the annual sales of SAIC's new energy vehicles to 3.5 million by 2025, representing a compound annual growth rate of 50%. It also expects the group’s self-owned brands to account for 70% of the total NEV sales.

Zhengzhou is one of SAIC Motor's significant production bases and a crucial supporter of its NEV development. Since 2017, SAIC Motor has successively planned and constructed multiple major projects in Zhengzhou, which involve complete vehicles, engines, a cloud computing data center, supplier parks, and Anji logistics. These projects have collectively produced and sold nearly 1.5 million vehicles and created a production value of over 100 billion yuan.

The power battery project, which was launched this time, will involve a total investment of 2 billion yuan with a designed annual production capacity of 300,000-set power batteries. After the project is put into production, the yearly production value is expected to exceed 10 billion yuan. This will further improve Henan's NEV industry chain layout, aiding the province in quickly establishing a crucial national-level NEV industrial base.