On July 14, the Changchun Municipal Government, China FAW Group, and BYD jointly signed an investment cooperation agreement on new energy power battery projects. Jing Junhai, Secretary of the Jilin Provincial Party Committee, and Han Jun, Deputy Secretary of the Provincial Party Committee and Governor of Jilin Province, met with BYD Chairman and President Wang Chuanfu and his party in Changchun, and also witnessed the signing of the agreement.

Wang Chuanfu said that the cooperation between BYD and Jilin has a good foundation, sufficient space, and great potential. They must keep up with the trend of changes in the automotive industry, focus on increasing investment in technology, talents, capital and other elements, build high-quality cooperation projects, and continue to launch first-class products. The development of Jilin's automobile industry is accelerating, and national automobile brands are growing.

This official announcement of cooperation can be said to be the realization of the "scandal" between BYD and FAW after nearly a month and a half.

As early as May this year, it was reported that the BYD battery project with an investment of nearly 10 billion yuan will be located on both sides of the Changchun International Automobile City Xinkai along the river.

It is reported that Fudi Battery, a power battery subsidiary of BYD, has shipped orders from FAW Hongqi. BYD has invested 10 billion yuan in Changchun to build a power battery base, which may be used to support FAW's new energy vehicles.

It is worth noting that the Hongqi E-QM5 under China FAW Group has been launched to the market, and it is equipped with BYD's blade battery.

According to the June production and sales bulletin released by BYD, the company's total installed capacity of new energy vehicle power batteries and energy storage batteries in June 2021 is about 2.777GWh, and the cumulative total installed capacity in the first half of this year is about 12.707GWh.

According to the data released by the China Automotive Power Battery Industry Innovation Alliance, in the first half of the year, the cumulative installed capacity of power batteries in my country was 52.5GWh, a cumulative increase of 200.3% year-on-year. Among them, the cumulative installed volume of ternary batteries was 30.2GWh, accounting for 57.5% of the total installed volume, a cumulative increase of 139.0% year-on-year; the accumulated installed volume of lithium iron phosphate batteries was 22.2GWh, accounting for 42.3% of the total installed volume, a cumulative increase of 368.5% year-on-year. Among them, BYD ranked second among the top ten domestic power battery companies in the first half of the year.

At present, both FAW Hongqi and Bestune have released electrification strategies, and BYD has invested heavily in Changchun, the hometown of FAW Group, which may have strategic significance. The current lithium battery manufacturing, from a geographical point of view, is mostly concentrated in South China and East China. In North China, especially the three eastern provinces, there are not many power battery production bases. The electrification supporting facilities in the three northeastern provinces are relatively scarce, and the establishment of BYD may change this situation.