1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

With the rapid growth of global energy demand and the increasing problem of climate change, the demand for renewable energy is increasing. However, due to the instability and intermittency of renewable energy, the application of energy storage technology is becoming more and more important. The energy storage technology in the new energy system can store peak and valley energy, stabilize the power supply, and provide backup power in case of emergency.

Battery energy storage technology is the most common energy storage technology. It can store solar and wind energy while quickly releasing energy to meet the electricity needs of homes and businesses. Electric car batteries, solar panels and wind turbines are all stored using batteries. The advantages of battery energy storage technology are high efficiency, environmental protection and quiet. At the same time, it can provide electricity at night and on non-windy days.

The project is located in Changchun Automobile Economic and Technological Development Zone, mainly preparing and producing battery raw materials, electrolyte, battery filling, etc., aiming to make use of the industrial advantages and resource advantages of Changchun Automobile Economic and Technological Development Zone to build a complete battery energy storage industry chain. Through the preparation of battery raw materials, electrolyte and battery filling and other key links, the project will realize the whole process control from raw materials to finished products to ensure 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.

1.1.2 Market prospect

(1) The global energy storage system market is developing rapidly

Energy storage system refers to the equipment or system that can store electrical energy, heat energy or other forms of energy and release it to supply users when needed. The main purpose of the energy storage system is to solve the problem of the imbalance between energy supply and demand, improve the efficiency of energy utilization, and increase the reliability and stability of energy supply.

Energy storage systems can use a variety of technologies to achieve energy storage, including battery energy storage, supercapacitor energy storage, compressed air energy storage, thermal energy storage, and so on. Among them, battery energy storage is one of the most widely used technologies at present, mainly by converting electrical energy into chemical energy and storing it, and then converting chemical energy into electrical energy when needed. The energy storage system market is showing a rapid growth trend. According to the market research report, the global energy storage system market size is expected to grow at a high rate in the next few years and is expected to reach tens of billions of dollars by 2027.

(2) Development trends and prospects of energy storage batteries

--Lithium-ion batteries are gradually replacing lead-acid batteries

Batteries are a more efficient way to store energy. Lithium-ion batteries have the advantages of low environmental pollution, high energy density, long cycle life, strong rate performance, etc. With the decline of its cost, the economy of lithium-ion batteries has become increasingly prominent, and the application of lithium-ion batteries in the energy storage market has become more and more extensive. New battery energy storage facilities are more widely used lithium-ion batteries, and the inventory of lead-acid batteries that have been put into use are gradually replaced by lithium-ion batteries. In the future, the energy storage lithium-ion battery market has great prospects for development.

-- Lithium iron phosphate batteries are favored

In energy storage lithium-ion batteries, lithium iron phosphate batteries have more advantages than ternary material batteries, which is the mainstream direction of the development of lithium-ion batteries in the future, mainly because: Energy storage batteries mainly focus on the economy of battery production and use, more consideration of battery cost, cycle performance, life cycle cost and other factors. Therefore, lithium iron phosphate batteries are favored because of their low production costs and high cycle times.

In the context of the “carbon peaking and carbon neutrality” goals, increasing efforts to promote new energy has become a general trend. The development of new energy storage technology is particularly important because of the randomness of supply, the instability of power generation and the difficulty of grid-connection. At present, the National Development and Reform Commission and the National Energy Administration jointly issued the "14th Five-Year Plan" Implementation Plan for New energy Storage Development, proposing that by 2025, new energy storage will enter the stage of large-scale development from the initial stage of commercialization. This will be a big opportunity for the development of China's energy storage battery industry, and in the future, China's energy storage batteries will become the dominant position in new energy storage products.

With the development of the lithium-ion battery industry, its production costs are also falling rapidly, as the cost of lithium-ion batteries is falling faster than expected, making it a strong competitor to natural gas power plants in many major energy markets, electrochemical energy storage is expected to become the core growth driver of China's energy storage installed capacity. In this context, it is expected that the future energy storage batteries will maintain rapid growth, shipments are expected to exceed 60GWh in the next few years, and the market size is expected to exceed 100 billion, becoming the main market segment of China's energy storage industry.

With the rapid growth of installed capacity of renewable energy generation, the demand for energy storage is gradually increasing. At the same time, the development of energy Internet, smart grid and other technologies has also brought new opportunities to the energy storage market. To sum up: The project has a good market prospect.

1.1.3 Advantageous conditions of project construction

(1) Policy advantageous

According to the "Jilin Province New Energy Storage Construction Implementation Plan (trial)" issued by the Jilin Provincial Energy Bureau on September 25, 2023, since 2023, newly added new energy projects are in principle configured with energy storage according to 15% of the installed capacity, charging time is more than 2 hours, and centralized sharing is encouraged. Among them, market-oriented grid-connected new energy projects, the capacity proportion and duration of the construction of new energy storage have increased moderately. Strive to the end of the "14th Five-Year", the scale of new energy storage in our province will reach more than 500,000 kilowatts, and the comprehensive energy storage time will not be less than 2 hours.

On April 2, 2024, the National Energy Administration issued a notice on promoting the grid connection and scheduling of new energy storage (National Energy Development Science and Technology Regulation (2024) No. 26), requiring accelerating the planning and construction of a new energy system, standardizing the grid-connected access management of new energy storage, optimizing the scheduling and operation mechanism, giving full play to the role of new energy storage, and supporting the construction of a new power system.

(2) Location advantageous

As an important node city in Northeast China, Changchun has superior geographical location and transportation conditions, undertakes the important mission of regional economic development and strategic layout, and is an important transportation hub in the country. Changchun has developed railway, highway, air and other transportation networks, connecting the country's major cities, providing convenient transportation conditions for the economic development of Changchun. Changchun's transportation advantages make it an important logistics center in Northeast China, and also provide important support for it to become a central city in Northeast China.

Changchun Automobile Economic and Technological Development Zone is located in the southwest of Changchun City, starting from Puyang Street and Changchun-Shenyang Railway in the east, Fanjiatun Town of Gongzhuling City in the south, West Xinkai River in the west, Jingyang Road, Zhinong Road and Changchun West Lake in the north. The 102 National Highway, Changchun-Shenyang Railway and other external traffic lines pass through the southern part of the area, and the expressway around the city passes through the central part of the area. Road transport: Highway around the city. Railway transportation: Changchun-Shenyang Railway, Changchun Railway, China. Freight station distance: 8.9km from Hongxun Logistics. High-speed rail distance: 18.3km from Changchun Station. Port distance: 26.9km from Changchun Railway inland port. Airport distance: 57.5km from Changchun Longjia International Airport.

(3) Talent advantageous

Automotive Industry College in Changchun, located in Changchun Automobile Economic and Technological Development Zone, is one of the first batch of 28 higher vocational demonstration colleges in the country, and was identified as a leading higher vocational college in Jilin Province by the Jilin Provincial government in 2013. The school is known as "the cradle of professional talents in the automobile industry", which originated from Changchun Automobile Technical School established by FAW in 1952. With the development of China's automobile industry, a unique vocational education system has been formed, with more than 9,600 students and 540 faculty members. The school has a strong faculty, with a national teaching team and 4 provincial excellent teaching teams; With advanced teaching equipment and facilities, the school has 103 automotive training bases, mechanical and electrical training bases and training laboratories, and 88 training bases have been built in large production enterprises such as FAW. More than 50,000 graduates have become indispensable talents in the automobile industry.

(4) Industrial advantageous

Changchun automobile industry has formed a relatively complete industrial chain, from parts manufacturing to vehicle production, and then to sales and service, have a high industrial synergy. This model of cluster development can help reduce costs, improve efficiency and enhance market competitiveness. Changchun has 6 Oems and 7 auto brands, and nearly half of the world's top 100 auto parts enterprises have settled in Changchun. The main brands include Hongqi, Jiefang, Pentium, Volkswagen, Toyota and so on. In addition, Changchun is also actively building a modern automobile industry system, creating Changchun International Automobile City, and striving to achieve the planned industrial output value of more than 1.1 trillion yuan by 2025, and build a world-class and internationally renowned trillion-level automobile industry base. Changchun has made remarkable progress in promoting the transformation and upgrading of traditional advantageous industries to new energy and intelligent connected vehicles. For example, Audi FAW new energy vehicle project has completed warm closure, and the factory will use green electricity, improving the green standards of investment projects in China.

1.2 Contents and scale of project construction

The project covers an area of about 38,600 square meters, with a planned total construction area of about 80,000 square meters. Construction of energy storage battery production line, including positive and negative electrode material preparation, electrolyte filling, battery assembly, etc., construction of energy storage battery testing center.

1.3 Total investment of the project and capital raising

The total investment of the project is 327 million yuan, of which the construction investment is 261.6 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 190.55 million yuan, its profit will be 62.9 million yuan, its investment payback period will be 6.2 years (after the tax, including the construction period of 1 year) and its investment profit rate will be 19.2%.

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

1.4.2 Social evaluation

Improve energy security: Battery energy storage technology can effectively cope with the volatility and instability of energy supply, improve the stability and reliability of energy supply, so as to ensure the energy security of the country and society.

Promote the development of renewable energy: Renewable energy (such as solar energy and wind energy) intermittency and volatility problems, battery energy storage technology to improve the efficiency of renewable energy, promote the development and application of clean energy.

Economic effect: Battery energy storage system plays an important role in the aspects of peak load balancing and frequency modulation of power grid, which can reduce the cost of construction and maintenance of power grid, and improve the overall efficiency and economy.

Environmental protection: By reducing dependence on fossil fuels, battery energy storage technology helps to reduce greenhouse gas emissions, reduce environmental pollution and promote sustainable development.

1.5 Cooperative way

Sole proprietorship, joint venture, cooperation.

1.6 What to be invested by the foreign party

Funds, other means can be met.

1.7 Construction site of the project

Changchun Automobile Economic and Technological Development Zone

1.8 Progress of the project

A project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of the unit

Name: Changchun Automobile Economic and Technological Development Zone Management Committee

Add: 7766 Dongfeng Street, Changchun

2.2 Unit overview

Changchun Automobile Economic and Technological Development Zone was established in September 2005 and promoted to national economic and technological development zone in December 2010. It is the only national development zone named after automobiles in China. In September 2021, the CPC Changchun International Automobile City Working Committee and Changchun International Automobile City Management Committee were inaugurated, opening a new chapter in the high-quality development of Changchun's automobile industry.

Changchun Automobile Economic and Technological Development Zone, located in the southwest of Changchun City. The latest approved planning area of the provincial government is 120 square kilometers (the approved area of the 2018 edition of the China Development Zone Review and Announcement Catalog is 110 square kilometers). Changchun Municipal Party Committee and Municipal Government proposed to build the Changchun International Automobile City plate plan in early 2021, with a total planning area of 471 square kilometers.

Changchun Automobile Economic and Technological Development Zone has FAW Group, the aircraft carrier of China's automobile industry, is the core area of Jilin Province's automobile industry, and is the most important production and development base of automobile vehicles and parts in the country and even the world. At present, it has formed FAW Hongqi, FAW-Volkswagen, FAW Fengyue, FAW Jiefang "four vehicle manufacturing bases", powertrain, shaft tooth industrial park, mold industrial park and other "eight core industrial areas", FAW Research Institute, China Machinery Industry Ninth Design Institute, Changchun Automotive High School and other research and development institutions, Changchun auto parts commercial street, collier north auto trade city, China port two cars and other trade bases, EA211 engine, EA888 engine, Germany Natif, Canada Casma and other more than 350 parts enterprises are located in our district. Changchun Automobile Economic and Technological Development Zone has been awarded the title of national auto parts export base, national automotive electronics industry base, national new industrialization industry demonstration base, etc.

2.3 Contact method

Project contact person: Wang Yuhan

Tel: +86-13756680162

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

Contact unit: Changchun Cooperation and Exchange Office

Contact person: Zhang Junjie

Tel: +86-15704317930

Fax: +86-431-82700590

E-mail: xmc82763933@163.com