Chery acquires DeYi Energy, making its battery business independent.

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Recently, Chery’s power battery business completed a key internal restructuring and asset integration.

According to corporate registration information checked by Wallstreetcn on June 10, the original shareholders of Anhui Deyi Energy Technology Co., Ltd. (“Deyi Energy”)—Wuhu Ecotec Powertrain Co., Ltd. and Wuhu Zhenyong Enterprise Management Center—withdrew, and Wuhu Qida Power Battery System Co., Ltd. (“Qida Power Battery”) under Chery Automobile joined as a new shareholder. At the same time, Deyi Energy’s registered capital increased from 1.8 billion yuan to 2.3 billion yuan, an increase of about 28%.

After the adjustment, Deyi Energy is now jointly held by Zongyang Hengyue New Energy Industry Investment Center and Qida Power Battery. Zongyang Hengyue New Energy Industry Investment Center (Limited Partnership), which is a state asset investment platform in Tongling City, saw its shareholding drop from 22.2222% to 17.3913%, while Qida Power Battery now holds 82.6087%.

Before Deyi Energy was integrated into the Qida Power Battery system in this reorganization, Wuhu Qida Power Battery System Co., Ltd. had just completed a much larger capital increase on May 29, with registered capital jumping from about 230 million yuan to about 2.53 billion yuan, a surge of about 1004%, and is wholly owned by Chery Automobile. This indirectly confirms that Chery is centralizing resources and systematically expanding its battery business.

This change is not a simple internal asset “left hand passing to right hand” operation; its core points to a real elevation of Chery’s battery business within the group’s strategic hierarchy.

Previously, Deyi Energy was controlled by Ecotec, which has been Chery's traditional base camp for powertrains, focusing mainly on engines and transmissions.

This means that at its inception, Deyi Energy was more of a new energy “project company” under the traditional powertrain structure.

Transferring it into the Qida Power Battery system this time means that the power battery business is officially separated from its subordinate position to the traditional powertrain, and is upgraded to an independent, first-level strategic sector operating at the group level. As Chery’s specialized battery operation platform, Qida Power Battery’s autonomy and flexibility in capacity planning, capital allocation, and R&D investment will be significantly enhanced.

The direct driver behind this series of adjustments is the competition among automakers for control over battery costs amid a price war.

In the context of an ongoing industry price war, the pressure for cost reduction at the automaker level is being transmitted upstream along the supply chain. Power batteries, as the single largest cost unit of new energy vehicles, have their price swings directly affect vehicle gross margins.

Chery’s intent through this adjustment is clear: to tighten control over the core “three electrics” (battery, motor, electronic control) segments and retain as much profit as possible within its own system.

From the perspective of automakers, self-developing and manufacturing batteries has become a standard defensive measure for dealing with supply chain risks.

For Chery, Deyi Energy undertakes not only the mission of mastering in-house cell manufacturing and achieving technical controllability, but is also the ballast stone in its supply chain negotiation.

Deyi Energy is Chery’s core platform for promoting battery industrialization, with production bases in Zongyang, Tongling and Wuhu, Anhui; while Qida Power Battery has previously focused more on battery PACK business. This restructuring integrates the battery cell manufacturing unit into Qida Power Battery, helping to create a complete business chain from cell to battery pack.

Having an in-house battery platform with actual mass production capability means Chery will have more bargaining chips and supply chain risk buffer when negotiating price and capacity with top-tier external battery suppliers.

Overall, transferring Deyi Energy to Qida Power Battery and raising its capital to 2.3 billion yuan marks a key step for Chery in seeking vertical integration as it navigates the deepwater zone of new energy transformation.

Through consolidation at the fundamental structural level, Chery is building a more closed-loop internal supply chain ecosystem. In the increasingly brutal future market knockout rounds, this penetration of core bottom-layer component costs will be the key variable determining automaker financial flexibility.

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