Fangzheng Motor Plans to Build a New Energy Motor Project with an Annual Capacity of 1 Million Units

Electric Vehicle Hub News: On the evening of June 28, Founder Motor announced its plan to invest in and build a production line in Lishui City's Development Zone, Zhejiang Province, aimed at manufacturing 1 million new-energy vehicle drive motors annually. The project will require a total investment of 500 million yuan, with fixed asset investments amounting to 420 million yuan and initial working capital set at 80 million yuan.

It is understood that the project plans to utilize existing or newly constructed factory facilities to procure six advanced production lines for new-energy vehicle drive motors, ultimately achieving an annual production capacity of 1 million new-energy vehicle drive motors.
The project will be implemented in two phases: By the end of December 2022, the construction of the first-phase production line—comprising two new-energy vehicle drive motor lines—will be completed, establishing an annual production capacity of 350,000 new-energy vehicle drive motors. By the end of 2023, the second phase will see the completion of four additional new-energy vehicle drive motor production lines, boosting the annual output capacity to 1 million units. Once the project reaches full capacity, it is expected to generate an additional 2.5 billion yuan in sales revenue.
Currently, Founder Motor's new-energy drive motor product series has established cooperative partnerships with domestic new-energy vehicle manufacturers such as SAIC-GM-Wuling, Geely Auto, and Xpeng.
In 2020, Fangzheng Motor signed a cooperation agreement with Weiran Power to supply core components for its drive motors. This project marks the company’s first mass-production initiative for flat-wire motors, signaling its capability to deliver cutting-edge technologies and products tailored to high-end models of premium customers. This development holds significant potential for the future growth of the company’s drive motor business. Additionally, Fangzheng Motor has established partnerships with clients such as SAIC, Magna, and Yutong Bus, and is currently developing drive motors specifically for these partners.
According to available data, Fangzheng Motor currently has an annual production capacity of 350,000 drive motors and is operating at full capacity. By the fourth quarter, once the flat-wire motor production line comes online, the company’s annual output capacity will increase to 500,000 units. Since the second half of 2020, the company’s monthly output of drive motors has surged from fewer than 10,000 units to over 30,000 units today. Meanwhile, both the company’s internal manufacturing system and its external supply chain management framework have proven robust under pressure, laying a solid foundation for further scaling up the production of new-energy vehicle drive motors in the future. Fangzheng Motor stated that the project’s implementation will not only help expand the company’s production capacity for new-energy vehicle drive motors, solidifying its position as an industry leader, but also enhance the company’s overall competitiveness and long-term sustainability. Ultimately, this initiative will play a positive role in enabling the company to grow stronger in the new-energy drive motor business.
Article excerpted from Dianche Hui, June 29, 2021, reporting from Beijing

Translated from Sina Auto

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