BYD, a giant in China new energy vehicle industry, raised funds of HKD4.2 billion in Hong Kong in May, 2014, and investment would focus on battery & supporting products. A staff from BYD said that the company planned to add 6GWh capacity for iron battery, which would be gradually put into operation in September and bring new capacity of 1.5GWh at least in the end of 2014. Mentioned new capacity would be distributed in BYD Kengzi Industrial Park.

Trapped by battery capacity bottleneck, capacity of Qin Model, a main force of company’s new energy vehicle, has not been fully released. Before that, battery capacity of BYD was merely 1.6GWh, in this case, monthly capacity of Qin Model was only 800 units, causing a delay in order deliveries. The data indicates that backlogged orders of Qin model reach 8,500 units.

In addition, during battery expansion of BYD, its upstream suppliers like Cangzhou MingZhu Plastic and Xinjiang Joinworld will get some benefits. Security representative of Cangzhou Mingzhu said that 50% of Cangzhou MingZhu’s separators were supplied to BYD, while in August, Joinworld also admitted that BYD was a customer of Shenzhen Tianjiao Technology (a subsidiary of Joinworld). Tianjiao mainly involves production & sales of lithium battery material.