China EV battery maker raises $542m Series A
Svolt Energy Technology, formerly the battery business unit of Chinese automaker Great Wall Motor, has raised a RMB3.5 billion ($542 million) Series A round featuring a string of government-linked investors.
A Bank of China investment unit and a vehicle launched by SDIC Capital and China Merchants Capital led the round. SDIC paid RMB1 billion for 12.2% of Svolt last year, according to AVCJ Research.
Other government-related participants in the latest round include Beijing Financial Street Capital, Changzhou Venture Capital, and ZJU Jiuzhi Investment. There is independent representation in the form of IDG Capital, Cathay Capital, HT Capital, and Dezai Capital.
Svolt started pre-research work on batteries in 2012 and was spun off as an independent entity in 2018. Headquartered in Changzhou, Jiangsu province, it focuses on next-generation battery materials, cells, modules, systems, and energy storage systems. Customers include Great Wall Motors, Geely Automobile, Dongfeng Motor, and France-based PSA.
The company plans to invest RMB26 billion in plant construction globally by 2025, according to its website. In January, it had the seventh-largest installed among domestic battery manufacturers, while new projects were under construction across Jiangsu, Sichuan, and Zhejing. Svolt has about 3,100 employees, including 1,400 R&D engineers.
China's electric vehicle industry is one of the largest and fastest-growing globally. Several independent players have achieved US listings, including Nio, Li Auto, and Xpeng. Batteries represent a complementary theme. Hillhouse Capital recently invested RMB10.6 billion in EV battery maker Contemporary Amperex Technology (CATL) as part of a RMB19.7 billion capital raise.
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