1 Introduction to the Project

1.1 Project background

1.1.1 Project introduction

Batteries are used to store electricity and are divided into three types in terms of application: Consumer batteries, power batteries, and energy storage batteries. Consumer applications include mobile phones, laptops, digital cameras, and other consumer products. Power applications are used in electric vehicles, while energy storage applications are used in energy storage power stations. This project mainly produces new energy storage batteries, which are mainly divided into two mainstream types: Carbon-lead batteries and lithium-ion batteries.

1.1.2 Market prospect

(1) Characteristics and applications of carbon-lead batteries

Lead-carbon battery is a new type of lead-acid battery that combines lead-acid battery and super-capacitor. Lead-carbon battery has better performance than ordinary lead-acid battery, which not only utilizes the advantages of instant high-capacity charging of super-capacitor, but also the specific energy advantage of lead-acid battery, and has very good fast charging and discharging performance. Moreover, due to the addition of carbon (graphene), the negative electrode sulfation was prevented, which improved a factor that caused battery failure in the past and extended the battery life. Lead-carbon battery is a capacitive lead-acid battery that evolved from traditional lead-acid batteries. The positive electrode active material of ordinary lead-acid batteries is lead oxide, and the negative electrode active material is lead. Lead-carbon batteries mix activated carbon into the negative electrode active material Pb, thus transforming ordinary lead-acid batteries into lead-carbon batteries, which can significantly improve the performance and lifespan of lead-acid batteries.

The performance of lead-carbon batteries is far superior to traditional lead-acid batteries and can be applied in fields such as new energy hybrid vehicles and electric bicycles; It can also be used in the field of new energy storage, such as wind and solar power storage. Lead-carbon batteries have the advantage of low price and mature industrial manufacturing foundation similar to traditional lead-acid batteries, and have strong competitive advantages in various application fields.

(2) Characteristics and applications of lithium-ion batteries

Common lithium-ion batteries include liquid lithium-ion batteries (liquid electrolyte, generally packed in aluminum and steel shells) and polymer lithium-ion batteries (solid or gelled polymer electrolyte, generally packed in aluminum plastic film). At present, the main polymer lithium-ion batteries on the market include: Lithium iron phosphate batteries (power type), ternary material lithium batteries (power type), lithium manganese oxide batteries, and lithium cobalt oxide batteries. The main advantages are: ①High energy density of 460-600Wh/kg, about 6-7 times that of lead-acid batteries; The weight of a lithium-ion battery is half that of a nickel-cadmium or nickel-hydrogen battery of the same capacity, and its volume is 20% to 30% that of nickel-cadmium and 35% to 50% that of nickel-hydrogen batteries. ②Long service life of over 6 years. The charging and discharging cycle of ordinary lithium-ion batteries can exceed 800-1000 times, while that of lithium iron phosphate can reach 2000 times. ③High rated voltage (single unit operating voltage of 3.7V or 3.2V). ④Capable of withstanding high current charging and discharging, lithium iron phosphate batteries can achieve a charging and discharging capacity of 15-30C. ⑤Very low self-discharge rate, which is one of the most prominent advantages of this battery. It can generally achieve less than 1% per month, which is less than 1/20 of nickel-hydrogen batteries; ⑥Strong adaptability to high and low temperatures, it can be used in environments ranging from -20℃ to 60℃. After processing, it can be used in environments of -45℃; ⑦Green and environmentally friendly, which does not contain toxic and harmful heavy metal elements and substances such as lead, mercury, and cadmium in the production, use, and disposal.

Through the above comparison and analysis, it can be concluded that energy storage battery technology is one of the key technologies restricting the development of the new energy storage industry. If energy storage battery technology can make breakthrough progress, it will be no less than a revolution in the global energy landscape.

(3) Market prospects of energy storage industry

In recent years, the global energy supply and demand pattern has entered a stage of adjustment, and the low-carbon and environmental protection concept has been increasingly accepted by more and more countries, leading to growth in the global energy storage market. As of the end of September 2024, the scale of newly built and put into operation energy storage in China has reached 58.52 million kilowatts/128 million kilowatt hours, an increase of about 86% compared to the end of 2023. It is expected that by 2025, the installed capacity of new energy storage will reach over 30 million kilowatts. In addition, by 2030, the cumulative installed capacity of new energy storage is expected to reach 220GW, and the total industry output value will exceed 3 trillion yuan. These data indicate that the energy storage industry is in a rapid development stage, and the market size continues to expand.

Energy storage is an important guarantee for national energy security and a major driving force for the development of emerging industries such as electric vehicles. Compared with resources such as wind power and solar energy, energy storage can effectively solve the contradiction between intermittent supply of new energy and sustained demand for electricity from users, improve energy utilization efficiency, and promote the achievement of the Carbon Peaking and Carbon Neutrality Goals.

In order to implement the Carbon Peaking and Carbon Neutrality Goals strategy, China has intensified the development of energy storage in recent years, and the energy storage industry has received key support from national policies, such as the 14th Five Year Plan for the Development of New Energy Storage and the 14th Five Year Plan for Scientific and Technological Innovation in the Energy Sector. Under the promotion of policies and continuous improvement of product technology, energy storage has experienced explosive growth and is expected to become a super trend for new energy vehicles. At present, China has launched a series of policies to increase support, and the prospects of the photovoltaic industry after the financial crisis are bound to be even broader. This provides a new round of development opportunities for energy storage batteries.

1.1.3 Technical advantageous

The technology of this project can rely on the China Battery Shenyang Research Institute (German Sonnensichein Dryfit Battery Technology). China Battery Shenyang Research Institute is the national centralized management institute for lead-acid battery industry. There are currently seven departments including scientific research, physics and chemistry, testing, intelligence, and standards. The China Lead-Acid Battery Industry Association, Lead-Acid Battery Standardization Technical Committee, and Machinery Industry Battery Technology Information Network are all located at China Battery Shenyang Research Institute. After more than 40 years of development and the arduous efforts of several generations, China Battery Shenyang Research Institute has accumulated strong scientific research strength and infrastructure, and is able to carry out multidisciplinary and multi-domain research on lead-acid batteries. In recent years, in order to meet the needs of industry development, China Battery Shenyang Research Institute has not only done a good job in industry management and focused on scientific research, but also made external technical services and technology development an important task, achieving outstanding results for the development of the industry.

1.1.4 Advantageous conditions of project construction

(1) Policy advantageous

The Implementation Plan for the Development of New Energy Storage during the 14th Five Year Plan Period states in the field of photovoltaics that the export of high proportion renewable energy bases shall be supported. Relying on existing resources and the addition of inter provincial transmission channels during the 14th Five Year Plan period, the role of large-scale new energy storage will be fully leveraged in Northeast, North, Northwest, Southwest and other regions. Through the multi energy complementary model "wind-solar-water-thermal storage integration", the large-scale transmission and consumption of new energy across provinces and regions shall be promoted to improve the utilization rate of channels and the proportion of renewable energy electricity. The support for "new energy + energy storage" shall be strengthened. In areas where the proportion of new energy installed capacity is high and the pressure of system peak shaving operation is high, the new energy power stations shall be actively guided to configure new energy storage in a market-oriented manner. For new energy generation projects that are equipped with new energy storage or implement energy storage in a shared mode, priority shall be given to competitive configuration, project approval, grid connection timing, guaranteed utilization hours, power service compensation assessment, energy storage technology and system benefits.

The National Energy Administration and the Ministry of Science and Technology have released the 14th Five Year Plan for Science and Technology Innovation in the Energy Sector, which proposes the overall goal of energy technology innovation before 2025, focusing on advanced renewable energy, new power systems, safe and efficient nuclear energy, green and efficient fossil energy development and utilization, energy digitization and intelligence, etc. It has determined relevant centralized research and development, demonstration and testing, and application promotion tasks, formulated a technical roadmap, deployed relevant demonstration projects in conjunction with the "14th Five Year Plan" energy development and project plan, effectively undertook demonstration and application tasks, and clarified policy measures to support technological innovation, demonstration and testing, and application promotion.

(2) Industrial advantageous

The investment attraction and project construction platform carefully crafted by Qian'an County. There are four major industrial parks planned, namely Qian'an Industrial Park, Daxia Industrial Park, Zanzi Industrial Park, and Anzi Chemical Industrial Park. Six leading industries have been initially established, including mechanical manufacturing and processing, deep processing of agricultural and sideline products, clean energy, biomedicine, emerging materials, and modern service industries. For high-quality projects, the development zone adopts flexible measures on a case by case basis to provide maximum support to enterprises; The Qian'an Tianshun New Energy Equipment Manufacturing Industrial Park project mainly produces wind turbine equipment, such as wind turbine blades, tower tubes, new energy components, etc. There will be a relatively stable sales channel for the products.

(3) Location advantageous

Qian'an Railway, Highway, and Waterway are well connected in all directions. The railways such as Beijing-Harbin, Beijing-Qiqihar, Changchun-Baicheng, and Tongliao-Ranghulu, as well as several national and provincial arterial highways such as Beijing-Harbin, Changchun-Baicheng, and Changchun-Harbin, pass through or connect with Qian’an. It takes 90 minutes to reach Changchun or Harbin Airport from Qian’an. It is 70 kilometers away from Songyuan Port, the largest inland river port in Jilin Province. Along the Songhua River waterway, it can be upward to Jilin City, down to Harbin City, and directly connected to Port of Khabarovsk in Russia via Heilongjiang. It is 100 kilometers away from Da'an Port and 600 kilometers away from Yingkou Port. In terms of location advantages, Qian'an County of Songyuan City has become an important transportation hub and logistics center connecting the three provinces in Northeast China and 8 cities and 14 counties in Inner Mongolia Autonomous Region, radiating a population of 31 million.

(4) Resource advantageous

Qian'an County has abundant wind and solar energy resources, with effective wind energy reserves ranging from 600-1000 kWh/square meter. The wind energy resource level is classified as Level 3, ranking among the top in China. The annual average sunshine duration is 2788.7 hours, and the total radiation per light year in Qian’an is 4733.5 joules per square meter. The solar energy resources belong to the transition zone from Class II to Class III. At present, new energy sources such as SGCC Jilin New Energy Wind Power, China Energy Wind Power, Qian'an Grid New Wind Power, Huayang Solar, Yangguan Power Solar, Tianhong Sunshine Solar, and Tongwei Photovoltaic have been connected to the grid for power generation.

(5) Talent advantageous

Jilin University and other universities can enhance their professional and technical talents. Qian'an County Agricultural Technology High School and Qian'an County Agricultural Machinery Chemistry School can provide graduates with rich comprehensive management abilities and agricultural production professional knowledge, which can provide favorable talent advantages for this project.

1.2 Contents and scale of project construction

1.2.1 Scale of project construction

The annual production capacity of the project is 10GW of energy storage batteries.

1.2.2 Contents of project construction

The project covers an area of 80000 square meters and has a building area of 61250 square meters. It mainly constructs related auxiliary facilities such as production workshops, raw material warehouses, assembly workshops, and finished product warehouses.

1.3. Total investment of the project and capital raising

The total investment of the project is 4 billion yuan, including the construction investment of 3.2 billion yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 2.331 billion yuan, its profit will be 769.3 million yuan, its investment payback period will be 7 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 19.2%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

Energy security and stable supply: New energy batteries and energy storage technologies can effectively cope with the volatility and instability of energy supply through large-scale energy storage, improve the stability and reliability of energy supply, and help ensure the energy security of China and Chinese society.

Environmental protection and ecological improvement: Through energy storage technology, clean energy such as wind and solar energy can be better stored and utilized, reducing dependence on traditional fossil fuels, reducing environmental pollution, promoting the transformation of energy structure towards a clean and low-carbon direction, which is conducive to improving atmospheric environmental quality and protecting the ecological environment.

Promoting the development of the industrial chain: The development of new energy storage technologies will give birth to new industrial chains, involving multiple fields such as material research and development, production and manufacturing, system integration, and operation and maintenance, bringing new growth points and development opportunities to related industries and promoting the vigorous development of emerging industries.

1.5 Cooperative way

Sole proprietorship, joint venture, and cooperation.

1.6 What to be invested by the foreign party

Funds, other methods can be discussed offline.

1.7 Construction site of the project

Qian'an County Chemical Industrial Park

1.8 Progress of the project

The project proposal has been prepared.

2 Introduction to the Partner

2.1 Unit basic information

Name: Qian'an County Key Project Service Center

Address: No. 1399 Yuzhou Avenue

2.2 Unit overview

Qian'an County is located in the northwest of Jilin Province, with an area of 3616 square kilometers and a total population of 275000. Located 210 kilometers from the provincial capital Changchun City, 68 kilometers from Songyuan City, and 40 kilometers from Songyuan Chaganhu Airport, Tongliao-Ranghulu Railway, Tieli–Horqin Right Middle Banner Expressway, National Highway 503, and National Highway 232 run through the entire area, with convenient transportation and obvious location advantages.

Qian'an County has abundant agricultural resources. Qian'an County, located in the golden corn belt of the Songliao Plain, is a well-known commodity grain base county in China. The total cultivated land area of the county is 2.685 million mu, with main crops including corn, sorghum, millet, etc. The characteristic agricultural products include sticky corn, red chili, cantaloupe, grapes, etc. The annual grain output is 1.2 billion kilograms, and the total number of livestock and poultry is 9.2 million. Qian'an yellow millet, Qian'an glutinous corn, Qian'an red chili, and Qian'an lamb have obtained national geographical indication certification; The new breed of "Merino" meat sheep from Qianhua Meat has filled the gap of domestic dual-purpose meat and wool breeds.

Qian'an County has abundant water resources. There are 108 naturally closed lakes within the territory, with a water area of 236000 acres. With the completion of the Hadashan Water Conservancy Hub Project, the water area can increase to 1.3 million acres, and the total water resources can reach 1.9 billion cubic meters.

Qian'an County has abundant oil and gas resources. The proven reserves of oil are 300 million tons, with an annual production of over 1 million tons of oil; The natural gas reserves are 70 billion cubic meters, with a daily supply of 1 million cubic meters of natural gas; The carbon dioxide reserves are 50 billion cubic meters, with a daily supply of 500000 cubic meters of carbon dioxide.

Qian'an County has abundant wind and solar energy resources. The annual effective wind energy reserves are 692 billion kilowatt hours, and 12 wind farms have been planned, covering an area of 760 square kilometers with a total installed capacity of 11 million kilowatts. The installed capacity has now been completed at 970000 kilowatts; The average annual sunshine hours is 2866.6 hours, and solar energy can generate 800 million kilowatt hours of electricity. Qian'an County has abundant tourism resources. The Dabusu Mud Forest, known as the "Stone Forest in the South and Mud Forest in the North", is a national nature reserve, geological park, and science popularization base; Fossils of woolly rhinoceroses and mammoths dating back over 20000 years are well-known both domestically and internationally; The "Spring Nabo" archaeological site of the Liao and Jin emperors, discovered in 2009, has been selected as one of the top 100 new discoveries in the third batch of national cultural relics census and is a national key cultural relic protection unit.

Qian'an County is also the only county in China that uses the "Thousand Character Classic" to select names for village and town place names in sequence, forming a unique and peculiar cultural place name and regional landscape in China, known as the "Jing Zi Huang". Famous attractions include the Dabusu Mud Forest, which was promoted to the Dabusu National Nature Reserve in August 2005 and approved as the Qian'an Mud Forest National Geopark by the Ministry of Land and Resources in 2009.

2.3 Contact method

Contact person: Deng Xiaoyu

Tel: +86-438-8250023

Postal code: 131400

Contact method of the city (prefecture) where the project is located:

Contact unit: Investment Promotion Service Center of Songyuan Municipal Bureau of Commerce

Contact person: Yu Lili

Tel: +86-18004388787