Green energy solutions provider Qiyuan Green Power and battery material supplier Jayson New Energy Technology have each raised 1 billion yuan ($147 million) to fuel their market expansion.
China’s SPIC-backed green energy firm Qiyuan raises $147m Series A
Qiyuan Green Power, a green energy solutions provider affiliated with China’s state-owned electricity supplier State Power Investment Corporation (SPIC), has raised 1 billion yuan ($147.3 million) in a Series A round of financing.
In a statement on Wednesday, Qiyuan said it secured investments from corporates in the green energy sector as well as multiple institutional investors but did not disclose their names.
Qiyuan primarily offers green energy solutions and services to help China build an eco-friendly logistics and transportation system. Its businesses cover the development of electric heavy-duty trucks and provision of charging facilities, power board replacement services and other smart battery management solutions.
The firm said it now operates almost 1,000 stations across 31 cities and provinces nationwide to deliver electric charging and battery swap services to about 200 different models of heavy-duty trucks in China.
With the new financing, Qiyuan plans to step up product R&D and market expansion to further consolidate upstream and downstream resources in China’s green energy sector, the firm said.
Qiyuan closed the deal, its biggest financing so far, roughly six months after it was said to have received a strategic investment from China’s Contemporary Amperex Technology Co Limited (CATL), the world’s largest battery maker. CATL picked up a 10% stake in Qiyuan by investing an undisclosed sum, Shanghai Securities News reported in February, citing updates on a local business information platform.
Shanghai-based battery material supplier Jayson raises $147m
Chinese battery material supplier Jayson New Energy Technology has pocketed over 1 billion yuan ($147.3 million) from investors, including investment firm Panorama Capital.
Its fundraising update follows a year of rapid increase in China’s production of lithium-ion batteries — a type of rechargeable battery essential for the manufacturing of electric vehicles (EVs). Statistics from the Gaogong Industry Research Institute (GGII), a market research firm in China, show that the country shipped a total of 219.7 Gigawatt hours (GWh) of lithium-ion batteries in 2021, up 175% year-over-year.
“The overall industrial chain of new energy vehicles (NEVs) has passed its most nascent stage, gradually moving from a time when players were heavily reliant on the government’s subsidy policy to a more mature phase at which business decisions are largely based on the market demand,” said Liu Tong, Panorama Capital’s chief investment officer, in a statement.
“Amid the continuous expansion of the NEV market, the value of core resources and key supply-chain companies will become more prominent. In that sense, Jayson is a perfect fit to our NEV investment standard,” said Liu.
Shanghai-based Jayson is led by its chairman Liang Feng, the steersman behind China’s publicly-listed Putailai New Energy Technology, which primarily develops, produces and sells new energy lithium-ion battery materials and process equipment.
Liang also chairs Hong Kong Excellen Mining Investment, a joint venture (JV) between Jayson and CATL to invest in the exploitation of minerals and nonferrous metals used in lithium-ion batteries across China, Africa and South America.