Fengyuan leads Series A for China battery components maker
Fengyuang Capital has led a CNY 150m (USD 22m) Series A round for Haodyne Technology, a China-based battery materials supplier.
Additional commitments came from Oriental Fortune Capital, Essence Securities, Zhejiang Provincial Energy Group, CDF Capital, and Zhumei Investments. The proceeds will go towards expanding production capacity, according to a statement.
Haodyne, which counts fellow battery players Eve and Amperex Technology Limited (ATL) as shareholders, was established in 2011. It was initially a sales agent for anode binders, which are used to prevent electrode swelling and improve the capacity of lithium-ion batteries.
In 2015, the company built a factory and became a binder manufacturer. By 2028, it was generating CNY 60m in annual revenue and had been recognised by leading listed lithium-ion battery producers as a qualified supplier of electrode materials.
Haodyne claims to have broken up Japan's monopoly of the electrode binder market and enabled domestic substitution. Jian Wang, the company's chief technology officer, previously worked for Japan-based Zeon Corporation, which had a 60% global market share. The overall battery binders market is expected to be worth CNY 32.5bn by 2025.
Investors are looking for different ways to tap into China's electric vehicle (EV) supply chain, having seen sales of new energy vehicles in the country grow more than 90% year-on-year to 26.8m units in 2022. This came despite an overall market downturn.
Given batteries account for some 40% of the value of an EV, investors are targeting manufacturers and other participants in the battery ecosystem. Earlier this year, Kuntian New Energy, which develops artificial graphite used in lithium-ion batteries, raised CNY 2bn and battery recycling start-up Ruilong Technology secured a Series A round of undisclosed size.
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