Lithium ion dark horse is brewing a 'green chemical reaction'

On September 26th, the groundbreaking event for the CORNEX Yichang 80GWh new generation lithium battery project was held in Yichang. Amidst the roar of bulldozers, this rapidly expanding new energy battery company, established only four years ago, is rewriting the industry's competitive landscape with astonishing "CORNEX speed".

This is not only an important layout of CORNEX's billion dollar strategic goal, but also an important part of CORNEX's efforts to help Yichang build a new energy industry highland through industry. CORNEX New Energy Chairman Dai Deming stated at the groundbreaking ceremony. It is reported that the second phase of the project, which is scheduled to start construction this time, has an annual production capacity of 80GWh and a total investment of about 15 billion yuan. It is expected to be completed and put into operation by the end of 2025. Adding the completed 65GWh production capacity of the first phase, the total production capacity of CORNEX Yichang base will exceed 145GWh, equivalent to 15% of the global demand for power batteries in 2023.

The CORNEX Yichang Lithium Battery Industry Park Phase II project, a giant with a planned production capacity of 80GWh and astonishing investment, is not just a simple expansion of the industry. It is more like a prism, reflecting the profound fission that is happening in the regional economy, industrial logic, and financial financing after China's new energy war enters the second half.

When the ribbon at the ceremony falls, a more fundamental question emerges: why did CORNEX go against the trend and increase its investment in the pattern where top companies have already built high walls? What kind of "chemical reaction" will Yichang, a traditional chemical and hydropower city, have with CORNEX.

CORNEX's' Differentiated Survival Rule '

At present, the unavoidable macro background is that the power battery track has become extremely crowded. Industry data shows that the total planned production capacity in China far exceeds market demand expectations, and "overcapacity" has become the Damocles sword hanging over the entire industry. In this context, is the CORNEX Yichang 80GWh new generation lithium battery project blindly following the trend or a strategic necessity?

The answer lies in the "golden triangle" strategy and product differentiation positioning behind it. CORNEX's three major bases in Xiaogan, Wuhan, and Yichang are not simply capacity replication, but have formed a gradient division of labor for research and development, testing, and large-scale production. The core task of the Yichang new generation lithium battery project is to focus on achieving large-scale, low-cost manufacturing of cutting-edge technologies through its location and technological advantages.

Market overcapacity is not a comprehensive overcapacity, but a structural overcapacity - high-end and high-quality power lithium batteries are in short supply, while low-end products are in oversupply. According to Bloomberg New Energy Finance, the global demand for power batteries will exceed 3500GWh by 2030, and the demand for energy storage batteries will reach 1200GWh. However, there is still a huge gap in high-quality production capacity at present.

The CORNEX Yichang new generation lithium battery project focuses on these segmented tracks, which is its survival rule in searching for blue oceans in the red sea. This move also indicates that the competition in the new energy industry is shifting from the expansion of "quantity" to the precise grasp of "technology routes" and "application scenarios". CORNEX is building new moats in the fields of energy storage and power batteries with the help of scale costs and local government support.

The 'Geographic Reshaping' of Industrial Chain and Capital Flow

A battery project with a capacity of 100 GWh has an impact far beyond the factory walls. It is like a huge magnet, reshaping the economic geography of the region.

In the past, battery material companies mostly gathered along the coast. Nowadays, a group of electrolyte, diaphragm, and structural component enterprises are accelerating their landing in Yichang and surrounding areas. This is not only to reduce logistics costs, but also to achieve closer "collaborative research and agile supply" with the host factory. The "geographic concentration" of the supply chain has brought about a "technology cluster" effect, enhancing the innovation resilience of the entire region.

Yichang has the unique advantage of "Three Gorges Hydropower". CORNEX's huge energy storage battery production capacity forms a perfect closed loop with the clean energy consumption demand of Three Gorges. This means that an integrated internal circulation energy system of "generation storage utilization" is taking shape. In addition, Yichang's position as a port at the throat of the Yangtze River also provides convenience for low-cost water transportation exports of battery products, quietly changing the logistics path of domestic new energy products.

The most profound changes have occurred in the financial sector. The credit support of banks for new energy projects has shifted from the initial "infrastructure loan" model relying on government credit endorsement to the "asset credit loan" model based on technology evaluation, order pledge, and supply chain finance. The rapid advancement and stable operation of the CORNEX Yichang project provide a replicable risk control template for financial institutions. What is more noteworthy is that the industrial guidance fund established by the local government is no longer aimed at "sprinkling pepper", but is precisely used to support key technology research and help on chain enterprises carry out intelligent transformation. This means that capital is shifting from "chasing the wind" to "cultivating fertile soil".

Conclusion

The 'CORNEX speed' is astonishing, as it demonstrates the efficient execution of projects by governments and businesses. And when the first shovel of soil that laid the foundation for the project fell, the whistle of the competition had already changed. The race of speed is coming to an end, and the competition of depth has just begun.

The core of this competition is no longer about who builds factories faster, but about whose ecology is healthier, whose technology is more advanced, and whose business model is more sustainable. For CORNEX, the second phase is a crucial battle for its transformation from a production capacity competitor to a technology leader. For Yichang, this is the coming of age ceremony for transitioning from a traditional industrial city to a modern new energy industry city.

The start of the project only wrote the prologue, but the real excitement lies in how to transform the "physical superposition" of production capacity into a "chemical reaction" that drives the joint upgrading of the city and industry. The reagents used for this reaction are called "Innovation" and "Wisdom".