The infant green vehicle market in Russia received a boost last week thanks to a partnership between the Russian Corporation of Nanotechnologies (RusNano) and Thunder Sky. RusNano and the Chinese battery manufacturer agreed to begin production of lithium-ion batteries within Russia in 2011. These batteries will be assembled on four production lines in a jointly owned factory in Novosibirsk. The construction of a RusNano-Thunder Sky manufacturing plant marks the first lithium-ion battery project in Russia.
RusNano plans to sell 100% of its lithium-ion batteries in the first few years to Thunder Sky, which will use these batteries to fulfill contracts in China. In addition to batteries for Chinese automakers, Thunder Sky will deliver lithium-ion packs to energy companies, public transit agencies and telecommunications firms. As plug-in hybrids and electric vehicles hit Russian streets, RusNano will balance sales to local factories with deliveries to Thunder Sky.
RusNano and Thunder Sky anticipate a project budget of $464 million thanks to a combination of loans and liquid assets. The Russian corporation will supply $75.4 million in liquid assets and up to $185 million in loans as part of this partnership. Thunder Sky will match RusNano’s commitment of liquid assets while providing up to $131 million in loans for construction of the plant. Officials from RusNano and Thunder Sky anticipate $575 million in sales from this project based largely on demand from the Chinese market.
The RusNano-Thunder Sky partnership pairs two corporations with relatively modest accomplishments in the field of battery development. Thunder Sky was created in 1998 and owns two production lines in China with plans for another factory based in northern China. The Russian Corporation of Nanotechnologies was created in 2007 to carry out research and development of nanotechnologies for the federal government. By sharing capital and technical knowledge, RusNano and Thunder Sky can boost their fortunes as EVs and PHEVs enter the Russian market.
While both sides benefit from the new battery plant, the Russian economy is the primary beneficiary in this partnership. The city of Novosibirsk will generate 500 jobs with the new factory and regional businesses will supply raw materials for battery production. RusNano may be working with Thunder Sky in 2010 but the Novosibirsk factory will likely open a Pandora’s Box for battery development in Russia in the next decade. The Russian economy will benefit as Japan, the United States, China and the European Union look for lithium-ion batteries for EVs and PHEVs.
