1 Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Graphene battery is a new energy battery developed by utilizing the excellent performance of graphene as an electrode material and the fast and large shuttle movement of lithium ions between the graphene surface and the electrode to increase the activity of lithium-ion batteries, thereby improving the storage capacity and charging speed of lithium-ion batteries. Graphene battery is a new type of battery with broad application prospects, which can achieve efficient energy storage and release, providing a new power source for the development of electric vehicles, smartphones, electronic devices and other fields.

The project is located in Siping Hongzui Economic and Technological Development Zone. Lithium-ion batteries can be used in electric vehicles and power tools, portable electronic equipment, energy storage systems, 5G base stations and communication equipment, aerospace and other fields. With the rapid development of industrial intelligence, military informatization, civil convenience, and the Internet of Things, technology-driven smart cities, and sustainable smart cities, the scale of the lithium-ion battery market continues to expand and the application scenarios become increasingly rich.

1.1.2 Market prospect

(1) Current lithium battery market

With the increasing proportion of new energy sources such as wind and solar energy in China's energy system, energy storage technologies and industries closely related to the development of new energy are also receiving attention. The new type of energy storage, represented by lithium-ion batteries, is mainly based on electrochemical energy storage. The development potential of electrochemical energy storage is enormous, and leaders in various fields are laying out different links in the energy storage track in advance to promote industry development through demand release.

In 2023, the proportion of lithium-ion battery energy storage in the national new energy storage installed capacity will be 97.4%. As of the end of 2023, the proportion of lithium-ion battery energy storage in operation is 97.4%, lead-carbon battery energy storage is 0.5%, compressed air energy storage is 0.5%, flow battery energy storage is 0.4%, and other new energy storage technologies are 1.2%.

In addition, the global new energy storage installed capacity reached a historic high of 45.6GW in 2023, with China accounting for nearly 50%. The newly installed capacity of new energy storage systems put into operation in China is 21.5GW, a year-on-year increase of over 150%, three times the level of the same period in 2022. Lithium-ion batteries continue to dominate in new energy storage, with an additional installed capacity of approximately 22.6 million kilowatts, accounting for 97% of the new energy storage installed capacity.

These data indicate that lithium-ion batteries still dominate the new energy storage market and their application scope and scale are constantly expanding.

(2) Lithium battery industry analysis in Jilin Province

In recent years, Jilin Province has been making every effort to build a trillion level automotive industry, supporting FAW's innovative development, breaking through key technologies, strengthening national brands, accelerating the layout of new energy vehicles, and building a new energy vehicle industry ecosystem. Jilin Province vigorously promotes the application of new energy vehicles in the public sector, promoting 20000 Hongqi new energy vehicles. The Audi FAW new energy vehicle project will start construction in 2022. In terms of policies, the People's Government of Jilin Province has issued Notice on the Issuance of the Jilin Province New Energy Industry High Quality Development Strategy Plan (2022-2030), which points out the need to promote the application of new technologies such as lithium-ion power battery products and separator products, carry out research and industrialization of key core technologies for solid-state batteries, and help enterprises strengthen their layout and development in the field of lithium batteries.

On the demand side, the automotive industry is the first pillar industry in Jilin Province, and the local development of the automotive industry has a first mover advantage. Jilin Province's automotive industry has eight complete vehicle manufacturing enterprises, including Hongqi, Jiefang, Volkswagen, Fengyue, Audi New Energy, etc. The production models cover all levels of passenger vehicles, medium and heavy-duty trucks and buses, and the overall scale ranks steadily in the "first echelon" of China. At present, Jilin Province has formed a new energy vehicle production and research and development industry cluster led by FAW, driving the growth of demand for lithium batteries and attracting enterprises to layout the lithium battery industry.

(3) Market prospects of graphene powered (energy storage) lithium-ion batteries

The size of China's graphene market continues to grow, reaching approximately 44.1 billion yuan by the end of 2024, and is expected to maintain high-speed growth in the coming years. The graphene battery industry is also in a stage of rapid development, demonstrating enormous potential for applications due to its high energy density, fast charging and discharging rates, and long cycle life.

At present, graphene battery technology is constantly innovating, and the application of graphene as an electrode material has significantly improved battery performance. The excellent conductivity, thermal conductivity, and mechanical strength of graphene endow graphene batteries with outstanding electrochemical performance and cycling stability. Chinese enterprises have made significant progress in graphene production and processing, achieving large-scale production.

The Chinese government attaches great importance to and supports the graphene industry, and has introduced multiple policies to encourage its development and innovation. With the advancement of technology and the expansion of applications, the demand for graphene batteries in fields such as new energy vehicles, portable electronic devices, and energy storage systems is constantly increasing, and the market prospects are broad.

1.1.3 Technical analysis

Technical advantageous:

The project is located in Changchun Automotive Economic and Technological Development Zone, mainly preparing and producing battery raw materials, electrolytes, battery filling, etc. The aim is to utilize the industrial and resource advantages of Changchun Automotive Economic and Technological Development Zone to create a complete battery energy storage industry chain. By  key links such as preparing and producing battery raw materials, electrolytes, and filling batteries the project will achieve full process control from raw materials to finished products, ensuring product quality and production efficiency. In addition, the project will also focus on environmental protection and sustainable development, adopt advanced production processes and equipment, reduce energy consumption and waste emissions, and contribute to local environmental protection and economic development.

(1) Graphene batteries have three times the storage capacity of lithium batteries.  The specific energy value of a lithium battery (based on the most advanced) is 180Wh/kg, while the specific energy value of a graphene battery exceeds 600Wh/kg.

(2) Electric vehicles powered by graphene batteries can travel up to 1000 kilometers with a charging time of less than 8 minutes.

(3) Lighter weight. The characteristics of graphene allow the weight of the battery to be reduced by half of traditional batteries, which can improve the efficiency of the machine with the battery.

(4) Graphene has greater and more advantages compared to traditional batteries. In terms of lifespan, its lifespan is twice that of lithium batteries and four times that of hydrogenated batteries.

(5) Faster charging speed and more durable than lithium batteries at high temperatures.

The production process of graphene lithium-ion batteries mainly includes the following key steps:

Preparation of graphene materials: This is the primary step in producing graphene based lithium-ion batteries. Graphene is a two-dimensional material composed of a single layer of carbon atoms, which has excellent conductivity and thermal stability, making it very suitable for battery technology. During the preparation process, it is necessary to ensure the purity and quality of graphene to ensure the performance of subsequent batteries.

Electrode fabrication: After completing the preparation of graphene material, the next step is to fabricate electrodes. This process involves mixing graphene with other active substances to form electrode materials. The mixing process needs to ensure uniformity to maximize the performance and lifespan of the battery. Subsequently, apply the mixture onto the metal current collector to form positive and negative electrodes.

Battery assembly: After the electrode production is completed, the next step is the assembly process of the battery. This step involves precisely assembling components such as positive and negative electrodes, separators, and electrolytes together. The function of the diaphragm is to prevent short circuits caused by direct contact between the positive and negative electrodes, while the electrolyte is responsible for the transport of ions between the positive and negative electrodes.  During the assembly process, it is necessary to strictly control the environmental conditions to ensure that there is no dust, water, or oxygen.

Testing and quality control: The final critical process is battery testing and quality control. Every battery needs to undergo rigorous performance testing, including capacity testing, charge discharge cycle testing, safety testing, etc. Only batteries that pass all tests can be recognized as qualified products and enter the market.

1.1.4 Advantageous conditions of project construction

(1) Policy advantageous

Energy storage is of great significance in ensuring national energy security, effectively resolving the contradiction between intermittent supply of new energy and sustained demand for electricity, improving energy utilization efficiency, and promoting the achievement of the Carbon Peaking and Carbon Neutrality Goals. In recent years, China has strongly supported the development of the energy storage industry, such as the 14th Five Year Plan for Science and Technology Innovation in the Energy Field, the Notice on Further Promoting the Participation of New Energy Storage in the Electricity Market and Dispatch Application, the 14th Five Year Plan for National Economic and Social Development and 2035 Vision Goal Outline of Jilin Province, etc. The national policy support has brought broad development prospects for the energy storage industry.

(2) Industrial advantageous

At present, Siping City has formed three key industries: Equipment manufacturing industry dominated by specialized vehicles, buses, construction machinery, heat exchangers, and automotive parts industry; The new energy industry dominated by oil, natural gas, wind power, biomass power generation, and solar power generation; The agricultural product deep processing industry is dominated by deep processing of grain and livestock products. Among them, the specialized vehicle industry is the most important industry that Siping needs to highlight and build.

(3) 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.

(4) Location and transportation advantageous

Siping City is the core of Northeast Asia and the city with the shortest transportation radius. It is located at the junction of Liaoning Province, Jilin Province, and Inner Mongolia Autonomous Region, at the center of the Northeast Automobile Industry Belt, with access to Heilongjiang, Jilin, Liaoning, and the four eastern leagues of Inner Mongolia. It is the closest city and necessary route to coastal ports and the Bohai Economic Circle in Jilin, Heilongjiang, and eastern Inner Mongolia, covering an area of 1.24 million square kilometers, accounting for 12.9% of the country's total population of 107 million. Siping City has convenient transportation and a network of intersecting railways and highways, making it an important node city on the Harbin-Dalian transportation artery. The Beijing-Harbin Railway, Harbin-Dalian Expressway, Changchun-Shenzhen Expressway, Daqing-Guangzhou Expressway, and National Highway 102 intersect in Siping City.

1.2 Contents and scale of project construction

The project is designed to have an annual production capacity of 20GWh for power (energy storage) battery systems. The project covers an area of 270000 square meters for the construction of graphene based lithium-ion power battery production lines and energy storage system assembly production lines. The project plans to construct production areas, office and living areas, warehouse areas, and purchase production, testing, and experimental equipment.

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 10 billion yuan, including a construction investment of 8 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 6.061 billion yuan, its profit will be 2 billion 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 20%.

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

1.4.2 Social evaluation

After the completion of the project, it will drive the rapid development of the new energy industry in Siping City, attract upstream and downstream enterprises to settle down, promote local employment, effectively improve the surrounding investment environment, promote regional economic development, and have good social benefits.

1.5 Cooperative way

Sole proprietorship.

1.6 What to be invested by the foreign party

Funds, other methods can be discussed offline.

1.7 Construction site of the project

Siping City Hongzui Economic and Technological Development Zone.

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: Siping City Hongzui Economic and Technological Development Zone.

Address: No.1 Xinghong Road, Tiexi District, Siping City

2.2 Overview

Siping City Hongzui Economic and Technological Development Zone was established in 2001, promoted to a provincial-level development zone in 2002, and upgraded to a national level development zone with the approval of the State Council in 2010. It is located in the northwest of Siping City, Jilin Province, the central city of the Northeast Asian Economic Circle, with a total planned area of 21.35 square kilometers.

Siping City Hongzui Economic and Technological Development Zone has formed a "211" innovation platform with the characteristics of "2 centers, 1 park, and 1 pilot". Among which “1 pilot” refers to the integrated pilot of agricultural machinery research and development, manufacturing, promotion and application. In 2022, Jilin Province was successfully included in one of the six national pilot projects based on its industrial advantages. As the main carrier area of the pilot projects, Siping City Hongzui Economic and Technological Development Zone can strive for financial support for enterprises every year to support their development and growth.

In recent years, with the strong support of the Jilin Provincial Party Committee, Jilin Provincial Government, Siping Municipal Party Committee, and Siping Municipal Government, the "China Black Soil Protection Agricultural Machinery Industry Innovation Demonstration Base" project has been built. The 16 completed and newly built roads in the park are about to be fully opened to traffic, presenting a "seven horizontal and nine vertical" road grid pattern. 48 standardized factory buildings and 3 comprehensive service buildings have been constructed, with complete facilities such as water, electricity, gas, heat, and communication. The carrying capacity and attractiveness of the park will be significantly improved.

2.3 Contact method

Contact unit: Siping City Hongzui Economic and Technological Development Zone.

Contact person: Zhang Xinghe

Tel: +86-434-3202081

E-mail: 1226160403@qq.com

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