Strengthening development advantages in the ‘capital of new energy’

(ECNS)– With its rich cultural heritage and scenic waterways, Changzhou City in East China’s Jiangsu Province has long been a jewel in the renowned “Suzhou-Wuxi-Changzhou” metropolitan cluster.

It has always been endowed with the fine spirits of the universe and a vital link of the rich and populous South Jiangsu in people’s imagination.

This industrial city with a long history has yielded unusually brilliant results due to the sharp rise of the new energy industry in recent years.

In 2023, Changzhou’s GDP surpassed one trillion yuan (about $137.2 billion) for the first time, with the new energy sector emerging as the economic growth driver. The sector generated over 768 billion yuan in output, accounting for 98.9% of the city’s large-scale industrial growth.

From a larger view angle, for every 14 new energy vehicles produced in China, one is manufactured in Changzhou. In addition, the production and sales of power batteries account for one-fifth in our country, and one in every ten new energy vehicles worldwide is equipped with a battery made in Changzhou.

The new energy industry in Changzhou holds deeper significance beyond its data contributions. As a typical case for endogenous drive and connotation growth for small and middle-sized cities, it exemplifies the transformation from industrial anchoring force to urban competitiveness. Furthermore, it offers a fresh perspective on urban energy transition and industrial transformation in China.

According to an investigation made by China News Network, behind the essential changes in Changzhou, there are consistent irrigation and cultivation to the new energy industry, careful long-term layout to new industries, and bold and decisive practice of new modes.

Potential energy of the industry and kinetic energy of development

Situated next to the Taihu Lake and the Yangtze River, Changzhou, one of the birthplaces of the “South Jiangsu Model,” identified five main industries, including the revitalization of new energies, as early as 2009. In 2022, Changzhou took a significant step forward by setting its sights on becoming the “capital of new energy.”

Despite its limited natural resources, why has Changzhou chosen new energy as its strategic focus?

When describing the development of Changzhou, many people choose the expression “betting on” new energy. Speaking of the determination, courage, and opportunities for the transformation of Changzhou, there is a typical story of “3 pages of PPT.”

In 2016, Li Xiang made his way around China with 3 pages of PPT in search of financing and the production base for his entrepreneurship project Vehicle and Home (renamed Li Auto later). After several rounds of negotiation, Wujin District of Changzhou made a prompt decision to make the first finished car plant of Li Auto settle here with the model of “agent construction of workshop + tendering and bidding combination.”

Today, a new energy vehicle is manufactured from the automatic production line of Li Auto (Changzhou) every 40 seconds on average. Li Auto delivered 376 thousand cars in 2023, with a year-on-year growth of 182.2%.

The cooperation reflects both the pioneering spirit of Changzhou and the deposits of its industrial development.

With rich industrial resources, Changzhou was known as “the first emerging industrial star city” during the 1980s. As early as the 1950s, Changzhou was known as the “capital of global transformers.” Later, the wire and cable industry, the photovoltaic industry, and the power battery industry started developing.

From “the model for middle-sized and small cities” to the “capital of new energies,” Changzhou has always focused on the development of the real economy without losing the distinct city personality and the real special skill of “Made in Changzhou.” Up until the beginning of 2023, Changzhou had owned 37 main categories among the 41 ones and 600 subclasses among the 666 ones. It is the confidence of Changzhou in the face of new industries and opportunities at any time.

Leveraging its strong industrial foundation and seizing emerging opportunities, Changzhou is steadily advancing towards becoming the “Capital of New Energy.”

A Li Auto workshop on intelligent manufacturing in Changzhou, Jiangsu Province. (Photo/China News Service)

Resulting in changes in the industry chain and seeking changes in hard work

There is a common saying about Changzhou in the industry: “In Changzhou, you can source everything from a single screw to a fully assembled vehicle.” This can be found in the evidence from the data: by taking power batteries as an example, up until 2023, the completeness level of the industry chain in Changzhou had achieved as high as 97%, ranking first in the whole country.

In the power battery industry, four of the top ten enterprises with the highest installed capacity of power batteries in the world have layouts in Changzhou, two of which are headquarters, including SVOLT Energy Technology Co., Ltd. Since settling in Changzhou in 2018, SVOLT Energy Technology Co., Ltd. has risen sharply and ranked among the top 10 of power battery installed capacity in China in 2021.

“During the site selection process, we investigated many cities all over China. The reason for us to choose Jintan (of Changzhou) is because there is the most complete power battery industry chain here, including both the upstream and the downstream industries.” According to an introduction by Jing Xiaoqiang, a senior manager of the Brand Publicity Department of SVOLT Energy Technology Co., Ltd., the Changzhou government demonstrated the highest level of enthusiasm, commitment, and offered the most attractive incentives during the investment negotiations.

By establishing such a complete industry chain, it’s easy to see Changzhou’s investment attracting ideas of full links and emphasis on application.

When looking back to the investment attraction history of new energy in Changzhou, there are several key enterprises with nodal characteristics that should be noticed: CALB in 2015, CATL in 2016, Li Auto in 2017, SVOLT Energy Technology Co., Ltd. in 2018, BYD in 2019, etc. All links have been perfected step by step, forming the closed cycle of the “power generation, energy storage, power transmission, and application network” industry, including power generation, energy storage, power transmission, and application.

However, whether the established industry can support continuous leaps in the city’s energy level or not? It depends on the real landing of the industry, to give full play to the values and lead to economic gains.

When passing through the Jintan Gymnasium of Changzhou, people are inevitably attracted by an “optical storage and charging” integrated charging station. The charging station changes solar energy to electric energy through the solar roof system and stores it in the energy storage battery so as for daily charging for new energy vehicles. It charges electricity when the electric price is low and discharges electricity when the electric price is high to reduce the charging cost for car owners and realize peak-load shifting of the power grid.

Changzhou’s pragmatic approach is evident throughout the city. Just as what was proposed in Opinions on Supporting High-quality Development of the New Energy Industry in Changzhou: Changzhou shall deepen scene application promotion on expanding demonstrative scenes to further improve the rate of new energy vehicles, charging facilities, and photovoltaic modules.

Improving the industry chain through connecting layouts in series and building the “testing ground” of the city through carrying out technologies are strong branches and trunks for Changzhou to construct the “capital of new energy.”

Aerial view of Changzhou, Jiangsu Province. (File photo/China News Service)

Innovation with all efforts and radiation in China

Five years ago, Wu Fan, the director of the Scientist Studio of Yangtze River Delta Physics Research Center Co., Ltd. of the Institute of Physics, the Chinese Academy of Sciences, and the chief scientist of the Tianmu Lake Institute of Advanced Energy Storage Technologies, came to Liyang of Changzhou alone and established the Scientist Studio with the support of Yangtze River Delta Physics Research Center Co., Ltd. and the Tianmu Lake Institute of Advanced Energy Storage Technologies.

As indicated by Wu Fan, “Changzhou had formed a strong layout in the lithium-ion battery industry at that time. We can find important upstream and downstream industrial enterprises in power battery here, which energetically supports our scientific research and industry development; in return, our research and development results can promote industrial implementation of all-solid-state batteries and key raw materials.”

Vigorous promotion of innovation becomes the development code of Changzhou. When analyzing the characteristics of various major “trillion-population cities” in China, it is easy to find that Changzhou ranks low in key indicators such as population and area. Therefore, Changzhou must choose a high-quality development path.

As was indicated by Chen Huapeng, deputy director of Changzhou Development and Reform Commission, as a typical industrial city, Changzhou intends to lead with the goals of carbon peaking and carbon neutrality and develop strategic emerging industries, to promote low-carbon transformation in traditional industries, adjust and optimize energy structure, build new productive forces, to find a distinctive path on low-carbon transformation in industrial cities.

Just as Chen Huapeng indicated, the significance of the emergence of new energies in Changzhou is not limited to the industries of a city; it makes other cities find more development possibilities.

China’s National Experimental Demonstration Project Jintan Salt Cavern Compressed Air Energy Storage in Changzhou is the first non-secondary burning type compressed air energy storage power station in the world, and the salt cavern energy storage technology is continuously promoted in areas with abundant salt cavern resources in China.

To the Baihetan-Zhejiang and Baihetan – the Jiangsu-Ultra-High Voltage Direct Current (UHVDC) Transmission Project completed and put into operation in 2022, the supporting core equipment such as converter valves were provided by NR Electric in Changzhou, to assist in the delivery of clean water and electricity in the upstream of Baihetan to the concentrated load districts to the east.

Leading the way in the hydrogen energy sector, Changzhou-based YOUON introduced the world’s first foldable hydrogen-powered bicycle and pioneered the first home-based distributed hydrogen production and storage system.

Promoting prompter supply-demand connection of scientific and technological innovation as well as wider radiation in China of innovative products are luxuriant leaves to construct Changzhou as the “capital of new energies”.

With strong roots, robust branches, and flourishing leaves, Changzhou’s new energy sector is growing into a towering industry leader.