After establishing a complete vehicle manufacturing base with a production capacity of over one million units, BYD has once again increased its investment in Xi'an, making a crucial move in its strategic layout for power batteries.
On September 29th, according to the news from "Xi'an Release," BYD's new energy vehicle power battery project (Xixian Base) has recently been fully completed and put into production. The Xixian Base is not only the first production site for BYD's second-generation blade batteries but also the core carrier for the mass production of fast charging technology.
BYD has located the initial production capacity of its second-generation blade batteries in Xixian, and has established the Xixian base as the core battery hub for the northwest region. This provides localized battery support for Xi'an BYD's vehicle manufacturing, further enhancing the regional new energy vehicle industry chain.
Increase investment
According to local media reports, BYD's new energy vehicle power battery project (Xixian Base) is located in Qinhan New City, covering an area of 1,333 mu (about 88.9 hectares), with a total investment of up to 7 billion yuan. The base has an annual battery production capacity of 16 GWh (gigawatt-hours), which is sufficient to support approximately 700,000 new energy vehicles. Once in operation, the annual output value is expected to reach 8 billion yuan.
The construction speed of the Xixian base is very fast. On October 17, 2025, the first batch of battery cells from the Xixian base were successfully produced, with only 10 months from the signing of the contract to the commencement of production. In March 2026, BYD officially released its second-generation blade batteries and flash charging technology, and the Xixian base was selected as one of the first production sites for these batteries, where trial production also began.
Feng Lei, the dean of Huoshi Creative Industry Research Institute, told Yicai that the value of the power battery project in the Xixian base for Xi'an lies not only in the additional production capacity, but also in the closed loop of "technology - complete vehicle - export".
Feng Lei analyzed that the annual production capacity of the Xixian base is not particularly large; however, its true value lies in being selected as one of the first bases for the second generation of blade batteries and in supporting the mass production of fast charging technology, which can propel Xi'an from a “large base for producing one million vehicles” to a “leading producer of new generation batteries.” It can be inferred that the 16GWh capacity this time is mainly for internal supply and support, and it is not yet intended for external supply of power batteries.
Feng Lei stated that Xi'an needs to succeed through the combination of "complete vehicle scale + new technology launch + export channels"; the next step is to see if the 16GWh production capacity in Xixian can stably supply high-end vehicles, as that is the key.
Not only that, according to news released by Xi'an, following the power battery project, BYD's new energy vehicle parts project has also been located in the Qinhan Autonomous Driving Industrial Park, and construction is currently being accelerated. The project covers an area of about 1,210 mu (about 80.67 hectares). As a support for the production of complete vehicles, the construction of this project will also further improve the localization of core parts supply.
Therefore, Feng Lei stated that Xi'an BYD has formed three overlapping advantages: one of the origins of BYD's car manufacturing, a base of over one million vehicles produced; and the first batch production and introduction of the second-generation Blade/Flash Charging technology; in addition, the High-Tech Zone already has more than 180 upstream and downstream suppliers, as well as suppliers for power electronics and automotive-grade chips surrounding BYD.
He also believes that in the future, Xi'an should link up vehicle model production scheduling, fast charging networks, automotive-grade chips, and power semiconductors to strengthen and extend the profit chain.
Deep binding
In fact, the full completion and commissioning of BYD's new energy vehicle power battery project (Xixian base) is of great significance to Xi'an.
Xi'an is the birthplace of BYD Automobile. In 2003, BYD acquired Xi'an Qinchuan Automobile Factory, thereby obtaining a passenger vehicle license to enter the automobile manufacturing industry. After four phases of construction, the current production capacity of the Xi'an BYD factory can reach 1.5 million vehicles, making it BYD's largest automobile production base.
However, during the period of rapid growth in the new energy vehicle industry over the past few years, BYD established production bases for complete vehicles and power batteries in multiple cities across the country. As competition in the new energy vehicle industry intensifies, there have been gradual subtle differences among these bases in terms of vehicle models, projects, and capacity layout.
For example, once the entire construction of BYD's Zhengzhou factory is completed, the planned total area will exceed 48,000 mu (about 320 hectares). As of early 2026, approximately 24,500 mu of land has been acquired, with a total investment of around 50 billion yuan. The project is divided into six phases and covers various aspects such as complete vehicles, batteries, semiconductors, and electronic components. The planned annual production capacity for complete vehicles is 1.8 million units, making it BYD's production base with the highest planned capacity.
Moreover, the model of deep integration between Xi'an and BYD is also facing challenges. Affected by BYD's production line adjustments, Xi'an's automobile production has seen a significant year-on-year decline in the first few months of this year. From January to July, the added value of industrial enterprises above designated size in the city decreased by 1.0% year-on-year, with the added value of the automobile manufacturing industry dropping by 7.1%.
Against the backdrop of significant production cuts, at the end of June this year, Wang Chuanfu, the chairman of BYD Co., Ltd., visited Xi'an where he held discussions and meetings with senior party and government officials from Shaanxi Province and Xi'an City, including Zhao Yide, Secretary of the Shaanxi Provincial Party Committee, Zhao Gang, Governor of Shaanxi Province, Hao Huijie, Secretary of the Xi'an Municipal Party Committee, and Ye Niuping, Mayor of Xi'an.
At the symposium, Zhao Yide stated that Shaanxi has a deep connection and a solid foundation of cooperation with BYD. He expressed his hope that BYD will continue to support, invest in, and take root in Shaanxi as always. BYD is expected to further play a leading role in the industry, increase its efforts in vehicle production, high-end manufacturing, and technology research and development, and jointly promote the new energy vehicle industry to create new advantages, thereby contributing to the high-quality development and modernization of Shaanxi.
During the meeting, Hao Huijie and Ye Niuping expressed their hope that both parties would further consolidate their strategic partnership, accelerate the deployment of new vehicle models, release production capacity at the base sites, implement cooperative projects, jointly enhance the level of industrial support, increase the promotion and application of new technologies and scenarios such as fast charging, deepen cooperation in areas like green energy storage and smart transportation, work together to strengthen and expand the domestic and international markets, jointly cultivate and grow the automotive after-sales market consumption, promote the continuous advancement of Xi'an's new energy vehicle industry towards the high end of the global industrial chain and value chain, and achieve mutual empowerment and win-win results for both local enterprises.
During a discussion with the Secretary of the Shaanxi Provincial Party Committee and the Governor, Wang Chuanfu stated that BYD has always regarded Shaanxi as a core area for its strategic layout. Over the past 23 years, the two parties have maintained a deep bond and worked together with one heart. He expressed his willingness to further leverage Shaanxi's advantages in industry, innovation, and openness to strengthen practical cooperation in areas such as new energy vehicles, power batteries, and high-power charging facilities, and to jointly create a new situation of mutual benefit and win-win results.
During the meeting with the Secretary of the Xi'an Municipal Party Committee and the Mayor, Wang Chuanfu stated that Xi'an is rich in scientific and educational resources, has a solid industrial foundation, prominent geographical advantages, and strong momentum for openness. It serves as a core base in BYD's national strategic layout. He expressed his firm determination and confidence to continue to deepen its presence in Xi'an, fully leverage the advantages of the entire industrial chain, make every effort to stabilize and expand production, increase investment in research and development, improve industrial supporting facilities, and deeply integrate into Xi'an's overall high-quality development. He pledged to contribute more to the economic and social development of the city.
