China EV battery maker raises $1.5b
Svolt Energy Technology, formerly the battery manufacturing unit of Chinese automaker Great Wall Motor, has raised RMB10.28 billion ($1.5 billion) in a Series B funding round led by Bank of China Investment.
Other investors include the state-backed National Fund For Technology Transfer & Commercialization, Country Garden Venture Capital, Shenzhen Capital Group, IDG Capital, Sany Group, Xiaomi, China Renaissance, and Oceanpine Capital.
CMG-SDIC Capital Management - a fund co-launched by China Merchants Group and State Development & Investment Corporation (SDIC) - and Jiuzhi Investment re-upped, according to a statement.
It follows a RMB3.5 billion Series A round led by Bank of China Investment and CMG-SDIC. SDIC paid RMB1 billion for 12.2% of Svolt last year, according to AVCJ Research.
Svolt started pre-research work on batteries in 2012 and was spun off as an independent entity in 2018. It focuses on next-generation battery materials, cells, modules, and energy storage systems. Customers include Great Wall Motor, Geely Automobile, Dongfeng Motor, and France-based PSA.
The company recently secured a RMB16 billion order from Stellantis, an automaker formed earlier this year through the merger of Fiat Chrysler Automobiles and PSA Group. This is regarded as a significant US and Europe breakthrough.
Svolt plans to invest RMB26 billion in global plant construction by 2025. As of January, it ranked seventh among domestic battery manufacturers by installed capacity, while new projects were under construction across Jiangsu, Sichuan, and Zhejiang provinces. The company has about 3,100 employees, including 1,400 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.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.