Research and analysis of Chinese lithium-ion battery manufacturers: Farasis Energy
Market Position/Overview: Farasis Energy is a battery manufacturer founded in 2009 in Ganzhou, Jiangxi, China.
(The founder originally founded Farasis in 2002 in the United States, which has since expanded into China).
(The founder originally founded Farasis in the United States in 2002 and has since expanded into China).
In 2020, Farasis received a strategic investment from Germany’s Daimler (now Mercedes-Benz), which made headlines and gave it a foothold in the European market.
By 2022, the company is ranked 10th in the world, with a global market share of about 1.5%, but since then it has been relatively declining in the rankings.
In China, the company will have a 1-2% share by 2024, but it is still a strong company that does business with top-tier automakers.
Main products and applications: Waffer Technology’s main product is the laminated (pouch) cell for ternary (NCM) lithium-ion batteries.
Large, high energy density pouch cells are manufactured and supplied to high-end EVs and plug-in hybrid vehicles.
We are known for our high performance cells, such as the NCM811 battery, which has a particularly high nickel content.
We have also developed our own battery pack control technology to improve safety.
We have also started mass production of lithium iron phosphate (LFP) batteries for buses and commercial vehicles in China.
The main applications are passenger car EVs, with many cases being used in high-end EVs from European manufacturers and EVs from Chinese joint venture manufacturers.
In recent years, we have also begun to enter the market for large batteries for energy storage. Key customers and partners: Waffer Technology’s largest partner is Mercedes-Benz.
In 2018, the two companies signed a major supply agreement, and Mercedes also invested in Waffer Technology.
As a result, about half of the Mercedes EVs manufactured in China (such as Beijing Benz’s EQ series) are equipped with Waffer’s batteries.
In fact, in the Mercedes EV fire accident that occurred in South Korea in 2024, it was reported that the battery installed was a Werner NCM battery.
In addition to Mercedes, Wescast has formed a battery joint venture with Beijing Automotive Industry Corporation (BAIC) to supply batteries for BAIC’s EVs. The batteries have also been used in some models by Geely Automobile and Guangqi New Energy Source. In Europe, Wanneng is moving forward with plans to build a battery plant in eastern Germany (originally scheduled to be operational in 2022, but delayed) and is expected to supply batteries for Mercedes European vehicles in the future. As a result of these strong relationships with major OEMs, approximately 45% (RMB7.4 billion) of Waffer Technology’s revenue in 2023 will come from Mercedes orders.
Recent Developments: Werner Technology faces a changing market environment. In recent years, the rise of competitors such as CATL and BYD has intensified the battle for market share, and the company’s market position has declined slightly.
Concerns about safety have also emerged due to reports of an EV fire accident in South Korea in 2023, and there are also concerns about the impact on brand image.
On the other hand, the company continues to develop technologies and is working on high energy density batteries using silicon-based anodes and all-solid-state batteries.
On the production side, the Gemlik plant in Turkey will be operational in 2023, producing 8GWh of batteries for the European market.
We are also seeking investments and partnerships with battery startups in the United States. On the financial side, while raising funds as a listed company, Wescast achieved another year of revenue growth (approximately RMB40 billion) in 2023.
Werner Technology is focusing on improving the reliability of its products and securing a diversified customer base, while leveraging the strength of having a large customer, Mercedes.
