Significant Investment Planned in Production Capacity as Market Sees Strong Growth
BEIJING, CHINA, May 4th, 2015 - Boston-Power Inc., an industry leading developer and manufacturer of lithium-ion batteries and energy storage technologies, today announced that it has reached an exclusive agreement with Shandong Xindayang Electric Vehicle Co.,Ltd to supply battery packs for its ZD low speed electric vehicle (LSEV). The initial agreement is for Boston-Power to supply 30,000 ZD battery packs with a capacity of 18.4 kWh each.
The cooperation between Boston-Power and Xindayang will help both companies further reach economies of scale to provide high-quality cost-competitive products to the market. Boston-Power has begun planned capacity expansions to reach 3 GWh at its Liyang factory and will be breaking ground on its new Tianjin factory which will reach 4 GWh and then 8 GWh in phases 1 and 2 respectively. Current investment for this expansion is estimated at $500 million. In addition to lithium-ion cell production expansion, Boston-Power will build an electric vehicle battery pack assembly plant in northwest China in Lanzhou which will be able to supply 40,000 packs per year for Xindayang’s Eco-EV business.
LSEVs typically have top speed of approximately 80kph or 48mph and are designed for local driving or as a second vehicle. Not usually counted in official automotive statistics, estimates are that at least one million LSEVs exist in China today with potential 2015 sales to reach 600,000 vehicles; growing to a million in annual sales in the next 3-5 years.
According to Huatai Securities, the LSEV segment will be the driver for rapid adoption of new energy vehicles in China. China Merchants Securities forecasts that the China new energy vehicle market in 2015 will see a breakout period with a 220% year on year growth resulting in annual demand of 14.1 GWh of batteries. China Merchants Securities believes that Boston-Power’s industry leading technology combined with its state-of-the-art production capabilities make it well positioned to take advantage of the expected market growth.
The Boston-Power high-energy density ZD battery pack will allow Xindayang to offer 2X the capacity of its current vehicle without changing the size of the pack enclosure; enabling a up to a 200km drive distance. Xindayang also expects to export the vehicles to over 10 countries including Italy, Spain and France.
Founded in 2005, Boston-Power’s lithium-ion cells offer industry leading cycle life, density, temperature performance and fast charge capability. Relying on the research strength of its two R&D Centers in Boston and Beijing, its products have been successfully implemented by leading EV car manufacturers including BAIC, Dongfeng, Yulon and Xindayang. Boston-Power’s cells are also used in stationary energy storage systems and industrial products around the world.
Boston-Power will be featured this week at the global electric vehicle conference EVS28 in Xindayang’s exhibit booth (A-332) in South Korea.
Boston-Power is a developer and manufacturer of next generation lithium-ion battery cells, blocks, modules and systems. Designed to fuel a wide range of applications, its flagship offerings, Swing® and Sonata®, serve as the foundation for a new era of longer-lasting, faster-charging, safer and environmentally sustainable batteries. The company's Swing® product delivers unmatched capabilities for Battery Electric and Plug-In Hybrid Electric Vehicles (BEV/PHEV), and energy storage applications. Sonata® delivers industry leading performance to a wide range of portable power and industrial applications.
Boston-Power is a global company with R&D centers in Westborough, Massachusetts, USA and Beijing, China, and mass manufacturing operations based in Asia. The company is funded by top-tier venture capital firms GSR Ventures, Venrock, Foundation Asset Management and Oak Investment Partners.
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Boston-Power logo, Sonata® and Swing® are trademarks of Boston-Power, Inc. Other brand names or product names are trademarks or registered trademarks of their respective owners. Boston-Power is an ISO 9001:2008 and ISO/TS 16949:2009 company.
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