China’s EVE Energy Launches New-generation Energy Storage Battery LF560K

Chinese battery maker EVE Energy Co., Ltd. ("EVE Energy") on Oct. 20 launched its new-generation energy storage battery LF560K, which is expected for global delivery in the second quarter of 2024.

EVE Energy said the newly-launched battery adopts the CTT (Cell to TWh) technology, an innovative cell technology targeting the TWh-level energy storage scale, which enables a simpler system integration and reduction in both cell and battery system costs.

The single LF560K battery has a storage capacity of 1.792kWh and a rated capacity of 560Ah. It features a designed service life of over 12,000 cycles.

Compared to the former-generation LF280K, the LF560K battery can help reduce the volume of cells by 50%, trim down the component number of battery pack by 47%, and improve the production efficiency by 30%, said the company. Besides, by virtue of the cluster-level size optimization, the battery container's capacity can be increased by 6.5%, so as to lower clients' usage costs.

EVE Energy added it plans to increase its production capacity of electricity energy storage batteries to 100GWh per year by 2025.

For the first three quarters of 2022 (Q1-Q3), EVE Energy Co., Ltd. expects its net profit attributable to shareholders to reach 2,437,385,400-2,658,965,900 yuan (US$336.238 million-366.805 million), growing 10%-20% compared to the same span of 2021, the company announced earlier this month.

EVE Energy said the upward movement in its Q1-Q3 net profit mainly resulted from the satisfactory profitability recovery of various product series, which came after the company adjusted its pricing mechanism in a timely manner amid a drastic hike in main upstream raw materials.

Introduction of LF560K

According to the press conference, the LF560K battery adopts the innovative battery cell technology for TWh-level energy storage scale, and has two major features and three major characteristics:

Two major features:

● Reduce system cost;

● Using CTT (Cell to TWh) super-large cell technology.

Three major characteristics:

● Large capacity up to 560Ah (twice that of LF280K).

● Ultra-high energy up to 1.792kWh.

● Ultra-high cycle life of 12,000+ times.

In terms of system hardware, the number of LF560K parts is reduced by 47%, the production efficiency is increased by 30%, and the energy is increased by 6.5%. In terms of cost, compared with 280K and 560K, the comprehensive cost is reduced by 10%. In terms of parts, the cell design cost is reduced by 5%, the cell production cost is reduced by 30%, the system design cost is reduced by 20%, and the system production cost is reduced by 30%.

In terms of technology, the “stacking” technology is adopted to achieve 2 times the full die-cut tab, which solves the problems of “electronic conductance current collection” and “super-large core productivity”, reduces DCIR by 8%, and improves the overall yield of cell production by 3%.

In terms of manufacturing, the stacking technology has reached 3.0, with a production rate of 0.2s/pcs, twice the electrode area, and a single-machine capacity of 1.3GWh/unit. In addition, in terms of energy storage factories, One of top 10 energy storage battery companies in China EVE expects to move towards TWh production in the future, with a super factory scale of 40GWh, reduce investment by 38% (single GWh, the same below), reduce production personnel by 30%, reduce energy consumption by 20%, and achieve modularization, digitization, and rapid expansion capabilities.

The plan is to achieve 100GWh of production capacity in 2025, with deliveries starting in the second quarter of 2024. Benefiting from smooth product price increases, increased shipments and economies of scale, EVE’s main battery business has developed well in recent years.

According to EVE’s recently released three quarterly report performance forecast, it is expected that the net profit in the third quarter of 2022 will be 1.082 billion RMB-1.298 billion RMB, a year-on-year increase of 50%-80%.

Increase investment in the layout of the industrial chain

In addition, on the day of the press conference, EVE also issued a number of capital increase and investment announcements, including:

1. EVE Malaysia Sdn Bhd intends to invest in the cylindrical lithium battery manufacturing project with its own and self-raised funds, with an investment amount not exceeding US$422.3 million.

2.It is planned to use its own funds not exceeding 250 million RMB to increase capital to the subsidiary Chengdu EVE. Chengdu EVE is mainly engaged in battery manufacturing and battery sales.

3.It is planned to increase the capital of RMB 75 million with lithium ion battery electrolyte company Shenzhen Capchem Technology Co., Ltd. and Jingmen New Zhoubang, of which RMB 37.5 million is included in the registered capital of Jingmen Capchem, and RMB 37.5 million is included in the capital reserve of Jingmen New Capchem. EVE will change its shareholding in Jingmen Xinzhoubang from 20% to 30%.

It is reported that Jingmen Capchem’s lithium-ion battery electrolyte products will give priority to ensuring its investment in the construction of battery factories in Jingmen City. It is beneficial for EVE to improve the layout of the upstream battery raw material industry chain.

Non-stop production expansion

Not only that, in fact, looking back on this year, EVE has been in constant news in the energy storage industry. In late September, EVE issued two announcements on the expansion of production in lithium mines and anode materials for lithium batteries. The company plans to transfer 20% of the equity of Shandong Ruifu Lithium Industry Co., Ltd. held by Junhua New Energy with its own funds. The transfer price of the target equity is RMB 800 million.

In mid-September, one of the top 10 power battery companies EVE power, a subsidiary of EVE, signed a strategic cooperation agreement with Goodwe. The two parties will carry out deeper cooperation in battery-related fields and carry out strategic cooperation in the energy field.

On July 30, the construction of the first phase of the EVE Chengdu power energy storage battery project was officially launched in the Chengdu Economic and Technological Development Zone (Longquanyi District). The project plans to invest a total of 20 billion RMB, and build a lithium-ion battery production base with an annual output of 50GWh in two phases.

Among them, the company plans to invest 10 billion RMB in the first phase of the project, and plans to add 20GWh of power storage battery capacity. In addition, it is worth mentioning that Linyang EVE recently won the pre-bid of China Power International Development Co., Ltd.

Xinyuan Intelligent Storage’s second frame bidding project for energy storage equipment in 2022 – 40% of the energy storage battery prefabricated cabin 2. The winning bid is expected to be about RMB 500 million, and Linyang EVE is jointly invested by Linyang Energy and EVE POWER, a subsidiary of EVE.

Under the current hot “dual carbon” strategic goal, the energy storage industry market has great potential for development, and the application scenarios continue to expand. This new product launch showcases EVE’s ambitions in the energy storage industry, but in today’s battleground where raw material prices are soaring and major giants are scrambling to infiltrate, it is still worth looking forward to whether EVE can continue its recent good development momentum in the future.

Basen is long-term supplier of EVE LiFePO4 cells. Get in touch with our battery expert for any information and solution you need.