Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
BYD Chairman Wang Chuanfu
 
BYD plans battery IPO amid electric-car boom
Bloomberg | 2018/12/7

Chinese automaker BYD Co. plans to list its battery business by 2022 to raise funds to expand as the global auto industry transitions away from the traditional combustion engine.

The listing will occur by the end of 2022 and the company hasn¡¯t decided yet where the shares will be trading, Chairman Wang Chuanfu said in an interview Wednesday at its headquarters in Shenzhen.

BYD, which makes batteries for automobiles and mobile phones, is spinning off its vehicle-battery operations into a separate company before listing. It is unclear whether the initial public stock offering will be for the car-battery business alone, or will also include other units.

Batteries are emerging as a key part of the electric-car revolution that¡¯s causing the biggest disruption to the auto industry in more than 100 years. 

Contemporary Amperex Technology Co., or CATL -- the world¡¯s biggest battery maker -- has more than tripled in value since raising more than $800 million in
its Shenzhen IPO in June, as investor cash gravitates toward the industry. 

BYD and CATL are China¡¯s key makers of power packs for electric vehicles and are emerging as challengers to Tesla Inc. suppliers Panasonic Corp. and LG Chem.

Surging demand from automakers is transforming the lithium ion battery business, with more power packs expected to be installed in EVs this year than in consumer electronics, according to Bloomberg NEF. The market value of batteries used in electric cars, electric buses and related energy storage should multiply by about 10 times to a potential $500 billion by 2050, according to Sanford C. Bernstein & Co.

BYD, which has been self-sufficient in making batteries for its vehicles, started discussions last year with other carmakers for contracts, Michael He, vice president of the battery business, said in an interview.

Billionaire investor Warren Buffett¡¯s Berkshire Hathaway Inc. is the largest shareholder in the Hong Kong-traded stock of BYD, with a 24.59 percent stake. 

Buffett made the bet two years before Tesla listed in New York. 

BYD is working on a plan to build vehicle-battery factories in Europe and the U.S. In Europe, the company is looking at possible locations in the U.K. and Germany, He said. The company is also talking to potential domestic and foreign investors for fundraising ahead of the IPO, He said without elaborating.

Related Stories
  • BYD suspends plan for Canada plant
  •     --Published:2018/27/11
     
  • BYD warns of 2018 profit slump
  •     --Published:2018/30/10
     
  • Buffett's China car bet rakes in $1.3 billion
  •     --Published:2018/28/9
     
  • BYD launches Europe-made electric buses in Hannover
  •     --Published:2018/21/9
     
  • BYD profits slump as Beijing cuts green subsidies
  •     --Published:2018/31/8
     
  • BYD to build 20 GWh battery plant in Chongqing
  •     --Published:2018/28/8
     
  • BYD lands largest overseas contract for electric sedans in Thailand
  •     --Published:2018/24/8
     
  • BYD lands EV orders from Atlanta and Georgia
  •     --Published:2018/17/8
     
  • BYD to deliver 10 large electric buses to Toronto
  •     --Published:2018/31/7
     
  • BYD seeks police probe of alleged employee impersonator
  •     --Published:2018/17/7
     
  • BYD to offer financial leasing for electric buses in U.S.
  •     --Published:2018/17/7
     
  • BYD to make EV batteries for Changan
  •     --Published:2018/10/7
     
  • BYD to deliver 100 electric buses to Chilean capital
  •     --Published:2018/6/7
       
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    »¦ICP±¸06057291ºÅ