On the evening of May 9th, Huizhou Yiwei Lithium Energy Co., Ltd. (hereinafter referred to as “Yiwei Lithium Energy”) announced that its wholly-owned subsidiary EVE Power Hungary Korla ́ Bolt Felelo ̋ Sse ́ Gu ̋ Ta ́ Rsasa ́ G (hereinafter referred to as “Yiwei Hungary”) has signed a land purchase agreement with the seller to purchase the seller’s land located in the northwest industrial zone of Debrecen, Hungary, for the production of cylindrical power batteries.
According to the statements of both parties, the land has been registered at the land registration office, with an area of 45 hectares. The agreed land purchase price by both parties is 22.5 euros per square meter plus value-added tax. Based on the total land area, the purchase price is 12.8588 million euros.
In addition, according to Reuters, Hungarian Foreign Minister Peter Szijjarto announced on May 9th that Yiwei Lithium’s battery factory in Debrecen will invest 1 billion euros (approximately 1.1 billion US dollars) to produce large cylindrical batteries that will be supplied to BMW cars. In addition, in a video posted on his Facebook account, Siyardo stated that the Hungarian government will provide a subsidy of 14 billion Hungarian forint (approximately 37.66 million euros) for the investment of Yiwei Lithium Energy.
However, as of the time of publication of this article, Yiwei Lithium Energy has not yet provided a response to the reporter from Pengpai News regarding the specific time when the factory will start construction.
On March 29, 2022, EVE Hungary and its subsidiary, Debreceni Ingatlanfejleszto, of the government of Debrecen (Debrecen), Hungary ̋ Korla ́ Bolt Felelo ̋ Sse ́ Gu ̋ Ta ́ Rsasa ́ G has signed a letter of intent to purchase land, and the company intends to purchase the target property from the seller and establish a power battery manufacturing plant in Hungary.
Yiwei Lithium Energy stated that this transaction will effectively meet the company’s future development needs for production land, further expand the company’s capacity for power storage batteries, and continuously consolidate and enhance the company’s influence, comprehensive competitiveness, and internationalization level in the new energy industry. It is an important measure for the company to improve its global industrial layout, which is in line with the company’s development strategy and the interests of all shareholders.
The announcement states that according to the relevant provisions of the Company’s Articles of Association and the Company’s External Investment Management System, the amount involved in this transaction is within the approval authority of the Chairman and does not need to be submitted to the Company’s Board of Directors or Shareholders’ Meeting for review. However, the acquisition of land use rights this time still requires cooperation from all parties to handle the follow-up procedures, and there is a certain degree of uncertainty in the subsequent implementation process and completion time.
Yiwei Lithium’s successful land acquisition in Hungary marks a crucial step in its overseas expansion process, and the Hungarian battery factory will also become the company’s first battery factory built in Europe.
The battery supply to BMW is not surprising either. On September 9th last year, the German BMW Group announced that it will use large cylindrical batteries with a standard diameter of 46mm in the “new generation” models starting from 2025. The new battery technology will significantly improve energy density, endurance, and charging speed, while also reducing carbon footprint in the battery manufacturing process
Post time: Jan-04-2024