CATL's Times Intelligent Secures 2 Billion Yuan in First Round of External Financing

Times Intelligent, a subsidiary of CATL, has recently initiated its first round of external financing, raising 2 billion yuan with a pre-investment valuation of approximately 9 billion yuan. This move indicates that CATL is accelerating its chassis business. Established in 2021, Times Intelligent focuses on battery-centered skateboard chassis products and technology services. For a long time, it has been a wholly-owned subsidiary of CATL, but recently opened up to external investors. As a prominent player in the smart chassis sector backed by CATL, Times Intelligent has garnered significant interest from external capital. Reports indicate that this round of financing was not fully public and was conducted through targeted invitations. The minimum investment was set at 100 million yuan, with large state-owned enterprises participating. The valuation of 9 billion yuan is considered reasonable as it is closely aligned with the net asset value, and early investors are likely to gain the best deal. External investments have already been secured, with a notable investment from Ningbo Meishan Bonded Port Area Ningchuang Zhiyuan Venture Capital Partnership, which acquired a 9.99% stake in Times Intelligent from CATL. Another large financial institution has confirmed an investment of 200 million yuan, which has passed approval. Times Intelligent's opening for external financing is seen as a sign of its commitment to accelerate business implementation. Industry insiders suggest that CATL is eager for progress as the current financing environment is challenging, indicating a serious intent to execute their plans. The skateboard chassis, a concept introduced by General Motors in 2002, integrates essential components like driving, braking, and steering into a standardized part, allowing independent development of the upper and lower body. However, this concept only gained traction with the rise of smart electric vehicles and the increasing demand for intelligent features. CATL began foundational research on skateboard chassis in 2018, recognizing it as a significant direction for battery technology evolution. In 2021, they established Times Intelligent to extend their business from power batteries to skateboard chassis. Their skateboard chassis aims to integrate CATL's power batteries, promising advantages like space savings, reduced energy consumption, and increased range. For automotive manufacturers, this innovation could significantly lower development costs and enhance efficiency, allowing new models to be developed in 12 to 18 months. In early 2023, Times Intelligent secured a client, Nezha Auto, and began constructing a factory in Yichun, Jiangxi. However, challenges arose as Nezha faced operational difficulties, delaying production plans. Times Intelligent also targeted another key client, Avita, with plans to launch their high-safety skateboard product in December 2024. However, the pace of commercialization has been slower than expected. Times Intelligent's team has grown to around 600 people, and there is a clear push for rapid scaling. Since the end of last year, they have accelerated external collaborations, signing agreements with various companies, including BAIC New Energy and Jianghuai Yiwai. CATL has also engaged in strategic partnerships with firms such as Baidu and Dongfeng Motor. Given the critical integration of core functions in the chassis affecting vehicle dynamics, many car manufacturers are hesitant to relinquish this aspect. Therefore, the deployment of skateboard chassis in ride-hailing services and robotaxis presents a feasible path for scaling. CATL's move into skateboard chassis is a strategy to create new growth avenues for its power battery business, which has seen a slowing growth rate after eight consecutive years of leading global sales. Despite still holding a solid market position, CATL acknowledges the need for new growth as competition intensifies in the smart electric vehicle sector. They are also expanding their international footprint, with substantial production capacity planned in Europe, and securing additional funding through a secondary listing in Hong Kong. However, implementing new business models like skateboard chassis and battery swapping remains a challenge despite CATL's technological strength and ecosystem resources.