Chinese Battery Co. Guoxuan will Increase Capacity to 100 GWh by 2025

Guoxuan has become in a few months one of the names with the greatest projection in the sector of the production of batteries for electric cars. A manufacturer based in Hefei’s province counts the Volkswagen group among its main investors and has now confirmed its ambitious expansion plans.

According to the latest report published this week, the Chinese manufacturer will close this 2020 with a production capacity of 28 GWh, or some 460,000 pack of 60 kWh. A figure that they hope to continue increasing in the coming year’s thanks to the opening of new facilities.

These will increase the estimated production figure that Guoxuan indicates will reach a symbolic figure of 100 GWh per year by 2025. At which point, they will have enough installed capacity to manufacture some 1.6 million 60 kWh packs each year.

These good prospects have encouraged Guoxuan shares, which have risen more than 7% after the presentation of this expansion project, for a brand that, among others, is responsible for supplying batteries to manufacturers such as Volkswagen and General Motors.

A contribution that will serve to achieve the objectives set by the International Energy Agency, which has indicated that by 2025 it will be necessary to reach at least 1,000 GWh of production capacity (16 million packs of 60 kWh/year) to meet demand existing in the world, a significant leap forward compared to the 320 GWh that is estimated today.

A dynamic in which those who have opted for batteries as a key element for future transport will benefit in a market where economies of scale will reach incredibly high levels, as we see in less than five years.

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