Jiawei New Energy halts lithium battery operations to concentrate resources on expanding photovoltaics

On February 10, Jiawei New Energy announced that, in accordance with its corporate development plan, the company will subsequently concentrate resources on deepening its presence in the photovoltaic industry and will no longer pursue lithium battery production as a future direction. The company's related lithium battery manufacturing has ceased operations, and it no longer possesses the necessary conditions for R&D and production of lithium batteries. For lithium batteries required to develop photovoltaic power stations and commercial & industrial energy storage projects, the company will adopt a centralized external procurement approach.

Currently, the solid-state battery concept is hot, but some players have already exited, with Jiawei New Energy being one of them.

In fact, in April 2022, Jiawei New Energy had already announced the above news, and the company declared to cease production is Jiawei Longneng Solid-State Energy Storage Technology Rugao Co., Ltd. (hereinafter referred to as "Jiawei Longneng"), a wholly-owned subsidiary of Jiawei New Energy. Jiawei Longneng mainly produces lithium battery products.

Regarding the reason for discontinuation, Jiawei New Energy explained that due to the company's inability to secure funds in a timely manner over the past two years, its operations failed to meet predetermined targets, resulting in sustained losses over recent years. Furthermore, according to the company's plan, future energy storage business will focus on lithium battery OEM production and system integration of downstream energy storage power stations, no longer positioning lithium battery manufacturing as a future development direction. Discontinuing production will enable the company to concentrate resources to further deepen its presence in the photovoltaic industry.

It is reported that Jiawei New Energy's layout in lithium batteries can be traced back to 2016. At that time, the company was mainly engaged in the research, development, production and sales of solar photovoltaic lighting, high-efficiency LED light sources, and solar consumer products. In October 2016, the company invested 85 million yuan jointly with Shenzhen Guojia Xingji and Shenzhen Jiawei Longneng to establish Jiawei Longneng (formerly known as Jiawei Longneng) to carry out lithium battery business. In 2017, Jiawei New Energy signed an investment agreement with the Rugao Economic Development Zone Management Committee, planning to invest no less than 660 million yuan for the lithium battery project.

Jiawei New Energy focuses on the new energy sector, with core businesses in consumer photovoltaic products and industrial applications, committed to providing customers with comprehensive solutions for photovoltaic clean energy production and efficient utilization. Among them, photovoltaic consumer products include courtyard lighting, LED lighting, smart home systems, and small PV panels. Photovoltaic power integration business includes investment, development, operation, and transfer of PV power stations, as well as EPC general contracting for PV power station projects and comprehensive operational service solutions for power stations.

Jiawei New Energy2021 Annual Report

Jiawei New Energy stated that since its establishment in 1993, the company has been committed to developing commercial application scenarios for photovoltaics and has ranked first continuously for many years in the photovoltaic lighting sub-sector. In the field of photovoltaic power stations, the company has self-built and constructed on behalf of others a total of over 1GW of photovoltaic power stations, covering domestic and international clients, accumulating rich industry design, development, and operation & maintenance experience. Jiawei New Energy is currently focusing on vigorously developing new energy power businesses by integrating and establishing three major business lines: project development and O&M, EPC general contracting, and power station asset operations.

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