On the evening of April 7, EVE Energy issued two major investment announcements in quick succession, revealing plans to establish operations in Shanghang County, Longyan City, Fujian Province, and Qidong City, Jiangsu Province. The combined planned increase in energy-storage battery production capacity is approximately 110 GWh, with a total investment of about RMB 11 billion, underscoring the company’s accelerated expansion in the energy-storage battery sector.

Specifically, the company has formed a joint venture with Longking Environmental Protection to develop and construct a 60 GWh per year energy storage battery production base, with a planned total investment of approximately RMB 6 billion; another project entails investing in the Qidong Economic Development Zone to build a 50 GWh energy storage (and power) battery production base, with a total investment of about RMB 5 billion.

I. Partnering with Longjing Environmental Protection, Shanghang, Fujian, Makes a Move in the 60 GWh Market

According to the announcement, EVE Energy plans to enter into an Investment Agreement for the EVE Energy Energy Storage Battery Production Base Project with the Shanghang County Government and a Joint Venture Agreement with Fujian Longking Environmental Protection Co., Ltd., under which the two parties will jointly invest in establishing a joint venture to build a 60 GWh-per-year energy storage battery production base in the Baisha New Materials Science and Technology Innovation Valley in Shanghang County, Fujian Province.

According to reports, the joint venture to be established by the two parties is tentatively named “Fujian EVE Lithium Energy Co., Ltd.,” with a proposed registered capital of RMB 900 million. Specifically, EVE Lithium Energy plans to contribute RMB 720 million in cash, acquiring an 80% equity stake, while Longking Environmental Protection plans to contribute RMB 180 million in cash, holding a 20% stake.

In fact, this is not the first time the two parties have collaborated. Since 2024, EVE Energy and Longjing Environmental Protection have established deep synergies in the battery-cell business. EVE Energy has comprehensively transferred core technologies, production processes, and quality standards for models such as the 314 Ah cell, while also providing procurement support for critical raw materials to Longjing Environmental Protection. In turn, Longjing Environmental Protection is responsible for the large-scale production of energy-storage battery cells, thereby establishing a division-of-labor collaboration model that integrates technology transfer, manufacturing, and market expansion. This joint venture will further strengthen their close alignment in areas such as securing the supply of key raw materials, advancing high-capacity cell technology, and expanding sales channels.

Notably, Longjing Environmental Protection is ultimately controlled by the Shanghang County Finance Bureau, which will also open up application scenarios such as new-energy mining trucks and mine microgrids to EVE Energy, jointly delivering green-mining solutions.

II. Qidong Secures Another Major Deal: 50 GWh Battery Base Bolsters Yangtze River Delta Expansion

On the same day, EVE Energy announced its intention to enter into an Investment Cooperation Agreement with the People’s Government of Qidong City, Jiangsu Province, under which it plans to invest in and build a 50 GWh energy storage (power) battery production base in the Qidong Economic Development Zone. The total investment for the project is approximately RMB 5 billion, with a land area of about 332 mu.

According to the agreement, EVE Energy is required to establish a newly formed, independently accounted project company within the Qidong jurisdiction within 30 business days after the agreement is signed, which will serve as the implementing entity. The proposed site for the project is located on the north side of Yinhe North Road in the Qidong Economic Development Zone, and the land will be transferred through a public listing process.

It is worth noting that there is some uncertainty regarding the land use for the Qidong project. The project land must be acquired through the tendering, auction, and listing process; if the land-use right is not successfully obtained, this Agreement shall automatically terminate, and neither party shall bear any liability. In addition, following the commencement of construction on the two projects, factors such as macroeconomic conditions, industry policies, and changes in the market environment may give rise to risks that the projects will not be completed on schedule or fail to achieve the expected returns.

III. Over 230 GWh of Capacity Expansion Within the Year, with “One Announcement per Week”

This RMB 11 billion investment is not an isolated move. According to the announcement, the company’s cumulative external investments over the past twelve consecutive months account for more than 50% of its most recent audited net assets and exceed RMB 50 million in absolute terms.

Upon review, since 2026, EVE Energy has issued a series of announcements regarding the external investment and construction of energy storage battery projects:

March 28 : Plans to invest in and construct a 60 GWh energy storage (power) battery project in the Zhongkai High-tech Industrial Development Zone of Huizhou, with an estimated investment of approximately RMB 6 billion;

March 31 : The subsidiary EVE Power plans to invest in and build a 60 GWh power and energy storage battery project in Jingmen, Hubei Province, with a planned total investment of RMB 6 billion.

April 7 : On the same day, announcements were made regarding the Qidong 50 GWh project (RMB 5 billion) and the Shanghang 60 GWh project (RMB 6 billion).

In just 11 days, EVE Energy announced investment plans totaling approximately RMB 23 billion, with plans to add up to 230 GWh of new energy storage and power battery capacity. If the new energy-storage-battery project in Malaysia announced in June 2025—with a planned total investment of no more than RMB 8.654 billion and a combined annual production capacity of 48 GWh—is included, the company’s officially announced total expansion investments over the past two years have already approached RMB 45 billion.

IV. With Performance Rebounding, What Fuels the Confidence to Expand Production?

Behind the large-scale capacity expansion lies the company’s sustained performance improvement. On the same day, April 7, EVE Energy also released its earnings forecast for the first quarter of 2026. According to the announcement, the company expects to report net profit attributable to shareholders of RMB 1.376 billion to RMB 1.487 billion for the quarter, representing a year-on-year increase of 25% to 35%; non-recurring net profit is expected to range from RMB 1.063 billion to RMB 1.145 billion, up 30% to 40% year on year.

The company’s 2025 annual report also deserves high praise. For the full year 2025, the company recorded revenue of RMB 61.47 billion, up 26.44% year on year. In terms of shipments, the company delivered 50.15 GWh of power batteries, a year-on-year increase of 65.56%, and 71.05 GWh of energy-storage batteries, up 40.84% year on year, maintaining a solid position among the global top two in energy-storage battery shipments.

However, profitability remains a cause for concern. In 2025, net profit attributable to parent company shareholders totaled RMB 4.134 billion, up just 1.44% year on year, reflecting the typical “revenue growth without profit growth” pattern. However, with sustained strong demand in the energy storage sector, a rebound in lithium carbonate prices, and a bottoming-out and subsequent recovery in system pricing, the industry’s low-price competition is gradually coming to an end, paving the way for continued earnings recovery at the company.

V. High Prosperity in the Energy Storage Sector Driven by Both Policy and Market

In 2026, China’s energy storage industry stands at a historic strategic inflection point. On the policy front, Document No. 136 has abolished the mandatory requirement for energy storage integration, while Document No. 114 has implemented a capacity-based electricity pricing mechanism, thereby fully removing energy storage from its previous status as a mere ancillary cost associated with new energy development and granting it independent market-entity status. The revenue model has evolved from a single peak–valley arbitrage approach to a triple-revenue structure encompassing electricity energy, ancillary services, and capacity compensation.

By the end of 2025, China’s installed capacity of new-type energy storage reached 144.7 GW, accounting for 51.9% of the global total and maintaining its position as the world’s largest for four consecutive years. In January–February 2026, newly added capacity totaled 9.51 GW/24.18 GWh, representing a year-on-year surge of 472.06%. Emerging applications such as AIDC (AI data centers), direct green-power connections, and zero-carbon industrial parks are rapidly gaining traction, accelerating the transformation of energy storage from a “regulatory ancillary” in power systems into the foundational energy infrastructure of the AI era.

At the recently concluded 14th International Energy Storage Expo and Summit (ESIE 2026), EVE Energy unveiled a 6.9 MWh energy storage system based on its 702 Ah large-format battery cell, once again setting the industry’s direction. By the end of 2025, the company’s cumulative shipments of energy storage batteries had surpassed 150 GWh. Meanwhile, its technological pipeline is meticulously structured: from the adaptability of sodium-ion batteries in “wide-temperature” and “high-rate” applications to the successful ramp-up of production lines for its all-solid-state batteries—“Longquan No. 3” and “Longquan No. 4”—EVE has established a multi-layered, three-dimensional technology matrix that spans the short-, medium-, and long-term horizons.

VI. Risks and Outlook

Of course, large-scale capacity expansion also entails certain risks. EVE Energy cautions that the land for the Qidong project must be acquired through public auction, tender, and listing, and there is uncertainty regarding both the availability of such land and the timing of its acquisition. Furthermore, following the commencement of construction on the two projects, factors such as macroeconomic conditions, industry policies, and changes in the market environment could result in delays in project completion or failure to achieve the expected returns.

Meanwhile, the competitive dynamics of the energy storage industry are undergoing a fundamental reshaping. At ESIE 2026, technological hallmarks such as “15,000 cycle life,” “AI-driven intelligent control,” and “extreme safety validation” have replaced the previous price-war rhetoric of “XX yuan per kWh.” The industry is shifting from a focus on scale and price to a new competitive paradigm centered on technology, application scenarios, and full lifecycle value.

EVE Energy’s latest large-scale capacity expansion is undoubtedly a bet on the golden decade of the energy storage sector. From a situation of rising revenues but stagnant profits to a turnaround in performance, and from being overtaken by competitors to launching a bold 23-billion-yuan counteroffensive, this lithium-battery giant now stands at a strategic inflection point. With the advancement of its two major production bases in Shanghang, Fujian, and Qidong, Jiangsu, coupled with the implementation of projects in Huizhou, Guangdong, and Jingmen, Hubei, whether EVE Energy can seize the commanding height in the global race for energy-storage batteries is certainly worth close watch.

This document is for informational purposes only and does not constitute investment advice. Investment involves risk; proceed with caution when entering the market.