GAC will produce lithium iron phosphate batteries for its own Aion EV brand

Almost anyone can come up with an electric vehicle (EV) these days, but producing EV batteries is another thing altogether – there are only a couple of battery manufacturers around and they dominate the market. In China, EV specialist BYD makes its own batteries, and GAC Motor is set to do the same.

The Guangzhou-based company is seeking to make its own EV batteries to ensure supplies for its growing EV output. The state-owned carmaker plans to build a US$1.58 billion (RM7.18 billion) battery plant it its southern home city. Construction is set to start at the end of 2022, and the facility is expected to produce 26.8 gigawatt-hours of batteries per annum in 2025.

The new factory will initially produce lithium iron phosphate batteries for GAC’s EV sub-brand Aion and other affiliates, before supplying other carmakers. It sold 125,284 units of Aion-badged EVs in the first seven months of 2022, a 135% year-on-year jump.

GAC is also the local JV partner for Japanese giants Toyota, Honda and Mitsubishi. Sounds familiar? Not many realise or remember, but GAC actually has a presence in Malaysia via Tan Chong, which launched the GAC GS3 in January 2022. The Malaysia-spec B-segment SUV with a 1.5L NA engine is GAC’s first ever right-hand drive car. Have you seen it on the road before? GAC is also behind the Trumpchi brand and this Alphard lookalike.