CHINA REPORT
Weichai Power and BYD have agreed to jointly produce power batteries in Shandong, and to cooperate in programs to develop EV commercial vehicles. On May 23, the companies signed an agreement to build a research and development and manufacturing base for power batteries, continuously strengthen the new energy industry chain, innovation chain, and value chain, and make positive contributions to promoting the industrialization development of China’s new energy commercial vehicles.
Weichai Power is the largest manufacturer of diesel engines in China. Since 2010, Weichai Power has set a strategic goal of leading the global industry development in the new energy business by 2030. Weichai Power has invested more than 4 billion yuan in this effort. It has strategically restructured the Canadian Ballard hydrogen fuel cell, the British Siris solid oxide fuel cell, and the Swiss rapid air compressor, developed the first hydrogen internal combustion engine heavy truck in China, comprehensively laid out the three technical routes of pure electric, hybrid power, and hydrogen fuel cell, and dispersed the risks brought by the uncertainty of industrial development with the investment strategy of coexistence of multiple technical routes.
BYD has successively launched multiple technologies in the field of new energy vehicles, including blade batteries, DM-i super hybrid, and CTB battery body integration. From January to April this year, BYD’s cumulative sales exceeded 750,000 vehicles, ranking first in the domestic new energy passenger vehicle market. BYD Group has set a market sales target of over 3 million new energy vehicles this year.
Currently, both companies have established new energy businesses in Shandong. Weichai Power has established a new energy engine base in Weifang, Shandong, and China National Heavy-Duty Truck has built a new energy heavy-duty truck manufacturing base in Laiwu, Jinan; Weichai laid out a power battery, chip, and vehicle factory in Jinan in 2021. This is the industrial foundation for both sides to achieve strategic cooperation in Shandong.
Source: Hexun Read The Article
PSR Analysis: Weichai and BYD are using their respective advantages to establish a more comprehensive and in-depth strategic cooperative relationship in the field of new energy. They will jointly produce power batteries in Shandong, build a research and development and manufacturing base for power batteries, continuously strengthen the new energy supply chains, promote the industrialization of China’s new energy commercial vehicles, and bring a leading effect to the process of off- road electrification.
The Weichai New Energy Commercial Vehicle Blue Engine Automotive Brand Strategy Release and Product Launch Event was held in Chengdu on May 15th, marking the beginning of Weichai’s car manufacturing.
The latest new energy light truck brand is LANDKING. This includes advantageous products such as Weichai Power and three electric systems: Fast Transmission, Hande Axle, and the globally leading BYD Blade Battery. With the strong economic recovery and the deepening of the “dual carbon” strategy, the huge potential of new energy light trucks is highlighted. PSR
Jack Hao is Senior Research Manager, China, for Power Systems Research
