1 Introduction to the Project

1.1 Project background

1.1.1 Project introduction

Charging infrastructure refers to various charging and swapping facilities that provide electrical energy supply for electric vehicles (EV), and is a new type of urban infrastructure. The charging infrastructure mainly includes various centralized charging and swapping stations and decentralized charging points. A complete charging infrastructure system is an important guarantee for the popularization of electric vehicles. Further promoting the construction of charging infrastructure is an urgent task to accelerate the promotion and application of EV, as well as an important strategic measure to advance the energy consumption revolution.

EV battery swap station refers to a power station that stores, charges, and distributes a large number of batteries through centralized charging stations, and provides battery replacement services for electric vehicles at the battery distribution station or integrates battery charging, logistics allocation, and swapping services. The essence of battery swap stations is to explore the full life-cycle value of power batteries and achieve the redistribution of interests between enterprises and consumers. To put it simply, the facility that separates the car and battery for energy replenishment is called a battery swap station, where EV do not charge but directly replace the battery to meet their range.

According to different locations, it can be divided into charging and swapping mode and centralized charging and unified distribution mode. Charging and swapping mode is a commonly used method in the current market, where the battery swap station is responsible for both battery charging and battery replacement; According to different battery swapping methods, it can be divided into chassis swapping, side swapping, box swapping, etc.

The project will be located in Shuangliao City. From the perspective of market demand, the EV battery swap station mainly serves scenarios that require rapid energy replenishment, such as operating vehicles, taxis, etc. These vehicles have a high demand for energy supply and are sensitive to time costs, so battery swap stations have become their ideal way of energy supply. With the popularization of electric vehicles and the increasing awareness of environmental protection among consumers, the market demand for EV battery swap stations will continue to grow. Especially in urban centers and highways, the demand for battery swap stations will be more urgent. It is expected that the market size of the EV battery swap station industry will continue to expand in the coming years.

1.1.2 Market prospect

(1) New energy vehicle market and battery swap demand analysis

Currently, China's economic development has entered a new normal, and achieving coordinated integration of economic development and environmental protection is particularly important. China is actively exploring new paths for green ecological development. Under the trend of global low-carbon economy and energy revolution, China's environmental policies are becoming stricter, and China has always attached importance to the development of new energy industries. A large number of policies have been introduced to encourage and support the development of clean new energy industries. China has proposed the Carbon Peaking and Carbon Neutrality Goals, which has led to the emergence of hydrogen powered and electric vehicles. Especially in recent years, significant breakthroughs have been made in battery technology, and the widespread use of rechargeable vehicles has gradually become a reality.

With the continuous improvement of China's economic and social development level, the number of automobiles continues to rise. Vigorously developing electric vehicles can accelerate fuel substitution, reduce automobile exhaust emissions, and is of great significance for ensuring energy security, promoting energy conservation and emission reduction, preventing and controlling air pollution, and promoting China's transition from a major automobile country to a powerful automobile country. In recent years, the government has vigorously supported and promoted the application of new energy vehicles. With the continuous introduction of national encouragement policies, the EV industry has experienced rapid development. The EV industry is poised to flourish under the background of new energy, and has become the most popular, energy-saving and environmentally friendly green transportation tool. The number of electric vehicles has been continuously increasing in recent years.

In recent years, the automotive industry has maintained a rapid and stable development trend, with explosive growth in the variety and production of new energy vehicles. According to the development plan of the new energy vehicle industry, by 2025, the sales of new energy vehicles will reach 20% of the total sales of new vehicles. The proportion of aluminum materials used in the new energy vehicle industry continues to rise, with broad market space and development prospects.

The explosive growth in production, sales, and exports of new energy vehicles has rapidly driven the demand for aluminum rolled materials. According to the Economic Operation of the Automotive Industry in December 2023 released by the China Association of Automobile Manufacturers, the cumulative sales of automobiles in 2023 were 30.094 million, a year-on-year increase of 12%. Among them, the sales of new energy vehicles were 9.495 million, a year-on-year increase of 37.9%. In 2023, the export of new energy vehicles reached 1.203 million units, a year-on-year increase of 77.6%. In the first 10 months of 2024, the cumulative sales of new energy vehicles in China reached 8.692 million units, a year-on-year increase of 38.3%. Among them, the sales of new energy commercial vehicles reached 405000 units, an increase of 32.5%. In addition, China's annual production and sales of new energy vehicles exceeded 10 million units for the first time in less than 11 months.

According to the Development Plan for New Energy Vehicle Industry (2021-2035) issued by the General Office of the State Council, by 2025, the sales volume of new energy vehicles in China will reach about 20% of the total sales volume of new vehicles. The demand for new energy vehicles continues to rise.

With the continuous expansion of China's new energy vehicle market, since 2019, the national policy plan has reintroduced concepts such as "battery swap" and "vehicle-battery separation". At the same time, carbon peaking and carbon neutrality have become major issues of global concern. Developing new energy vehicles, promoting the construction of battery swap stations, and improving the battery recycling system play a crucial role in accelerating China's achievement of the “2030 Carbon Peak and 2060 Carbon Neutrality” goals.

(2) Market prospect analysis of battery swap stations

With the rapid development of new energy vehicles and the support of national policies, the national charging infrastructure has begun to take shape. Battery swap can be achieved by directly replacing the battery to supplement energy, complementing the charging mode to form an effective scenario and jointly promoting the continuous improvement of the penetration rate of new energy vehicles. For operational vehicles such as taxis, ride hailing services, and commercial vehicles, battery swap has obvious advantages and can meet the efficiency requirements of users for fast switching and fast transportation. The problem of energy structure transformation essentially lies in the energy storage and distribution links. By fully utilizing the valley charging and peak discharging of battery swap, peak discharging and valley charging can be achieved, reducing the load on the power grid, and realizing the function of energy storage; At the same time, battery swap stations can conduct comprehensive testing of batteries, eliminate safety hazards, and lay the foundation for the operation of energy storage systems through the tiered utilization of battery recycling. Energy storage and distribution promote the transformation of energy structure and build an electricity trading network platform. Carbon peak and carbon neutrality are an energy revolution, and energy storage and new energy vehicle charging/swapping are key supporting technologies for the revolution. The swapping mode can reduce the risk of uneven power grid load and promote the achievement of Carbon Peaking and Carbon Neutrality Goals. Charging and swapping is a complementary relationship, and the future market shall be a complete supplementary power network system composed of charging stations, charging points, and battery swap stations.

The advantages of battery swap mode are significant, and the blueprint for future development is beginning to take shape. 1) Battery swap has a particularly significant effect on shortening the energy replenishment time, saving up to 10 hours compared to charging mode; 2) Battery swap causes minimal damage and has a relatively long lifespan; 3) Users can reduce their purchasing costs through the "vehicle-battery separation" mode; 4) The load pressure on the power grid is relatively small, and a powerful peak shaving and valley filling capability can be formed through V2G scheme. V2G utilizes the batteries of electric vehicles as a buffer between the power grid and renewable energy sources. When the vehicle runs out of power, the power grid replenishes the energy, and when there is a short-term shortage in the power grid, electric vehicles with surplus power actively supplement the energy to the grid. The Chinese Society of Automotive Engineers predicts that the annual electricity demand for electric vehicles in China will reach 745.4 billion kilowatt hours by 2030, accounting for 6% to 7% of the total social demand; The charging power is 194 million kilowatt hours, accounting for 11-12% of the grid load, which can form a strong peak shaving and frequency regulation capability.

The battery swap mode is increasingly valued and has risen from the ministerial level to the national level. The 2020 Government Work Report for the first time included battery swap stations in the construction of new infrastructure, and the battery swap model has become an important part of "new infrastructure". During the 14th Five Year Plan period, the battery swap industry is expected to achieve leapfrog growth. Various leading companies in the industry have released future construction plans one after another. Thus, it can be seen that the market prospects for the project are extremely broad.

1.1.3 Technical analysis

The principle of an EV battery swap station can be mainly divided into two parts, namely the battery pack management system and the battery swap operation system.

The battery pack management system is the core component of EV battery swap stations. It is mainly responsible for managing the status and performance of the battery pack, ensuring its safety and reliability. The battery pack management system monitors and controls the charging and discharging processes of the battery pack. In EV battery swap stations, the battery management system can monitor and control parameters such as battery charging status, battery temperature, and battery capacity through data exchange with the communication system of the EV.

The battery swap operating system is a key component of EV battery swap station. It is mainly responsible for replacing and charging the battery pack. In EV battery swap stations, the battery swap operation system usually includes a battery swap mechanical device and a battery swap control system. The battery swap mechanical device is mainly responsible for the removal and installation of the battery pack, and it can replace the battery pack through automated equipment. The battery swap control system is mainly responsible for controlling the battery swap mechanical device to ensure the safety and normal replacement of the battery pack. At the same time, the battery swap control system can also exchange data with the battery pack management system to monitor and control the charging status of the battery pack.

The principle of EV battery swap station is to achieve EV charging by replacing the battery pack. In the EV battery swap station, after the EV enters the station, it first needs to perform identity authentication and payment operations. Then, the EV will communicate with the battery pack management system of the EV battery swap station to exchange relevant information about the battery pack. According to the battery pack status and requirements of electric vehicles, the battery pack management system will select the appropriate battery pack for replacement. Next, the battery swap operating system will remove the old battery pack through the battery swap mechanism and install the new battery pack onto the EV. Finally, the EV leaves the EV battery swap station and completes the swapping process. The technology and process proposed for this project are advanced, and the project organizer has relatively mature technology to achieve industrial production level.

1.1.4 Advantageous conditions of project construction

(1) Policy advantageous

The Development Plan for the New Energy Vehicle Industry (2021-2035) points out the need to improve the public service capabilities of the new energy vehicle industry, enhance the measurement, testing, performance evaluation, and certification capabilities of the entire vehicle and key components. At the same time, it is necessary to improve the safety standards and regulations for new energy vehicles, their components, maintenance and testing, charging and swapping, and strengthen the supervision and management of safety production and the management of new energy vehicle safety recalls.

On December 14, 2022, the Central Committee of the Communist Party of China and the State Council issued the Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035) and issued a notice requiring all regions and departments to conscientiously implement it based on actual conditions, and clearly release the potential of travel consumption. The layout of the urban transportation network should be optimized, and efforts shall be made to vigorously develop smart transportation. The transformation of automobile consumption from purchase management to usage management shall be promoted. The electrification, networking, and intelligence of automobiles shall be advanced, and the construction of supporting facilities such as parking lots, charging stations, battery swapping stations, and hydrogen refueling stations shall be strengthened.

The Jilin Provincial Government has released the 14th Five Year Plan for Energy Development in Jilin Province, which clearly states the need to build a green and low-carbon transportation system. The layout and construction of charging and swapping facilities shall be accelerated, the coordinated development of vehicles and stations shall be comprehensively promoted, and social capital shall be encouraged to invest in the construction of charging and swapping stations. By the 14th Five Year Plan period, a reasonable, safe, convenient, intelligent, and efficient charging and swapping infrastructure system shall be basically established. Industry standards shall be improved, market supervision shall be strengthened, and a unified, open, competitive, and orderly charging and swapping service market shall be formed. A new business model of "green energy charging and swapping" shall be created, and the substitution of electricity in the transportation sector shall be comprehensively promoted. By 2025, we aim to build 500 charging and swapping stations and over 10000 charging stations in the province, meeting the charging needs of over 100000 electric vehicles.

(2) Talent advantageous

Siping City has gathered various talents in scientific research, engineering technology, survey and design, business management, consulting services, etc. Jilin University, Changchun University of Science and Technology, Changchun University of Technology, Northeast Normal University, Jilin Academy of Agricultural Sciences, Jilin Normal University, Jilin Academy of Agricultural Engineering, and Siping Science and Technology Research Institute have provided talent support for the development of Siping City and formed a complete talent training system. Siping City has obvious advantages in labor resources, with a high proportion of skilled workers in the Northeast urban agglomeration. The labor force is in a dividend period, and the labor cost is relatively low. There is a large number of high-quality industrial workers who can meet the employment needs of various enterprises.

(3) Location and transportation advantageous

Shuangliao City has significant geographical advantages, located in the central area of Liaoning, Jilin, and eastern Inner Mongolia. In the Central Urban Cluster Plan of Jilin Province, Shuangliao City has been positioned as the central city and gateway city of western Jilin Province. Shuangliao is a transportation hub in the western part of Northeast China and an important material distribution center in the region. There are two railways Shuangliao-Dahushan and Siping-Qiqihar passing through the area; Daqing-Guangzhou, Changchun-Shenzhen, Ji'an-Xilinhot, Nenjiang-Dandong, Shuangliao-Baicheng and other highways intersect in Shuangliao, making it the only city in Jilin Province with multiple highway nodes and 9 highway exits; There are two national arterial highways Shenyang-Mingshui and Ji'an-Xilinhot, with G231 Nenjiang-Shuangliao line running through its north and south; The provincial arterial highway Changchun-Shuangliao spans from its east to west. Shuangliao is a 50 minute drive from Tongliao Airport, and a 150 minute drive from Changchun Longjia International Airport and Shenyang Taoxian International Airport.  Shuangliao will integrate into the 1-hour economic circle of Changchun and the 2-hour economic circle of Shenyang.

(4) Electricity energy advantageous

The total installed capacity of China Guodian Corporation Jilin Electric Power Co., Ltd. Shuangliao Power Plant reaches 2 million kilowatts, making it the largest thermal power plant in Jilin Province. As one of the three main areas for the construction of the "Jilin Wind and Solar Three Gorges" project, Shuangliao City is vigorously developing wind power and photovoltaics based on the "Green Power Park", and is releasing the advantages of new energy electricity prices, making every effort to build a national level clean energy production base. In the power energy industry chain, green electricity shall be vigorously developed to reduce the cost of electricity consumption for enterprises, improve the international competitiveness of products, attract projects with high energy capacity, high technology, and high output value, leverage "green electricity" to promote the new energy industry, and create a coordinated energy development pattern of "wind, solar, fire, and storage".

1.2 Contents and scale of project construction

The project covers an area of 20000 square meters and will construct 30 new energy battery swap stations, including passenger car battery swap stations and heavy-duty truck battery swap stations, with an average battery replacement time of 3 minutes per train.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of this project is 300 million yuan, including a construction investment of 240 million 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 178.3 million yuan, its profit will be 58.8 million yuan, its investment payback period will be 7.1 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 19.6%.

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

1.4.2 Social evaluation

The project complies with national industrial policies and regional industrial planning, and will have a positive impact on local economic construction, economic structure, and new energy projects. This project is supported and encouraged by the national and local governments, and has obvious policy advantages.

The construction of the project aims to address the lack of charging and swapping infrastructure for electric vehicles, electric scooters, and new energy vehicles in Shuangliao City, as well as the limited promotion and application of new energy electric vehicles. The construction of charging and swapping infrastructure will be the focus of promoting the quality and efficiency of new energy transportation, with the core of facilitating citizens and improving service efficiency. Overall planning, construction, and management will be carried out to accelerate the structural reform of urban transportation supply side and better support and lead economic and social development; The project is conducive to directly promoting the development and improvement of the new energy electric vehicle industry in Shuangliao City, reducing pollution, improving energy consumption structure, lowering power grid load, and saving energy; The project is conducive to establishing the ecological and environmental image of Shuangliao. Building electric vehicle swapping infrastructure and developing the new energy electric vehicle industry can fulfill the requirements of developing a national "low-carbon" economy, establish and enhance the image of green and ecological Shuangliao. Whether in terms of environmental protection, energy conservation, or the development and utilization of new energy, the project all meet the requirements of sustainable development strategy and have significant social benefits.

1.5 Cooperative way

Sole proprietorship, joint venture 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

Shuangliao City.

1.8 Progress of the project

This project is in the stage of external investment promotion.

2 Introduction to the Partner

2.1 Basic information

Name: People's Government of Shuangliao City

Address: No. 1980 Liaohe Road, Shuangliao City, Siping City

2.2 Overview

Shuangliao City is located at the junction of Jilin, Liaoning, and Inner Mongolia provinces (autonomous regions), adjacent to the Songliao Plain and the Khorchin Grassland, and is known as the "where the rooster’s crow can be heard in three provinces". The jurisdiction covers an area of 3121.2 square kilometers, with a permanent population of 320000. It has jurisdiction over 18 townships (streets) and 1 provincial-level economic development zone. There are 2 railways and 4 national and provincial arterial highways, making it the only node city in Jilin Province with 4 highways and 9 highway exits.

The regional transportation is well-developed. Shuangliao is a transportation hub for public and railway transportation in the western part of Northeast China. There are two railways Shuangliao-Dahushan and Siping-Qiqihar passing through; 4 highways Daqing-Guangzhou, Changchun-Shenzhen, Ji'an-Xilinhot, Nenjiang-Dandong intersect in Shuangliao, making it the only city in Jilin Province with multiple highway nodes and 9 highway exits.

The resources here are abundant. The silica sand resources are hidden and ready for use. The Qikeshu Silica Sand Deposit is one of the four major rich mines in the world, with a storage capacity of 900 million tons. Relying on the silica sand resources, the two major glass giants in China, Jinken Glass and Yingxin Glass, have gathered in Shuangliao, becoming the only glass building materials characteristic park in Jilin Province, the largest glass building materials base in northern China, and a nationally planned northern siliceous raw material production base.

There are abundant agricultural and animal husbandry resources. Shuangliao is located in the world's "golden corn belt", with a total cultivated land area of 2.8 million mu and a stable annual grain production of 1.5 billion kilograms. It is the largest livestock distribution center in Jilin, Liaoning, and Inner Mongolia provinces. It has been successively named as a national grain producing county, a national commodity grain base county, a national sheep base county, a national lean pork pig base county, and a national ecological demonstration county.

The supply of electricity and energy is sufficient. The total installed capacity of China Guodian Corporation Jilin Electric Power Co., Ltd. Shuangliao Power Plant reaches 2 million kilowatts, making it the largest thermal power plant in Jilin Province. Shuangliao is also a county and city with abundant wind energy resources in China. State owned large enterprises such as China Guodian Corporation, China Huaneng Group, China Datang Corporation, and China Huadian Corporation have successively developed and constructed wind power projects in Shuangliao City, with a grid-connected installed capacity of 400000 kilowatts. Guohua Energy Investment, China Huaneng Group, Jilin Puhua Yineng, Jilin Zhongneng, Bailun Wind Power and other enterprises are developing and constructing wind power projects with a capacity of 400000 kilowatts. At the same time, photovoltaic companies such as Shuangliao Qingda, Changzhou Trina Solar, Xinjiang TBEA, and Guangdong Dynavolt Tech have invested in the development of photovoltaic projects in our city, and have accumulated a total of 225MW of grid-connected power generation.

It has integrated development of culture and tourism. It has been successively rated as the national safe agricultural machinery demonstration county, the whole process mechanization demonstration county, the exemplary organization of traditional Chinese medicine and the provincial civilized city at the county level. Featured culture has been integrated into the scenic spot. It is a provincial health city, with ecological landscapes such as Shuangliao Yimashu Sandy Forest Park, White Crane Nature Reserve, Qixing Lake Park, Jiashutai Lake Wetland Park, Shuangliao City Park, Bayi Lake, etc.

Shuangliao Economic Development Zone was founded in 2002 and was listed as a provincial-level industrial concentration zone in Jilin Province in 2005. The total planned area of the park is 28 square kilometers, and the layout is divided into "1 zone and 4 parks". Among them, the chemical park was approved by the Provincial Environmental Protection Department in October 2012, with a planned area of 1.48 square kilometers (1.28 square kilometers in the northern zone, developing the chlor-alkali industry chain cluster; 0.2 square kilometers in the southern zone, developing chemical raw materials). It is the development base of the salt chemical industry in our province. In 2022, it was approved by the provincial government to be promoted to a provincial-level development zone, and in the same year, it was rated as the only "Jilin Wind and Solar Three Gorges" green power demonstration park among county-level cities in Jilin Province.

2.3 Contact method

Contact person: Huang Xibo

Tel: +86-13844438112

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

Contact unit: Siping Municipal Economic Cooperation Bureau

Contact person: Wen Dacheng

Tel: +86-434-3260536

E-mail: spjhjjhk@163.com