GAC joins CATL in 2 battery ventures

Source: Xinhua | 2018-07-20

CHINESE automaker Guangzhou Automobile Group Co Ltd and battery manufacturer Contemporary Amperex Technology Ltd said yesterday they will set up two new joint ventures to produce and sell batteries for new-energy vehicles.

“The joint ventures are going to deepen cooperation between CATL and GAC Group in the field of new-energy vehicles. We will fully take advantage and leverage the resources of both parties to further expand business scale, and enhance profitability and competitiveness,” CATL said in a statement.

China plans to accelerate development of battery-related technologies to boost the new-energy vehicle sector.

The business scope, registered capital and shareholding structure of the two new joint ventures, both in Guangzhou, are different. With registered capital of 1 billion yuan (US$148.9 million), the first joint venture, temporarily named Amperex GAC Power Battery Co Ltd, will focus on manufacturing, development, sales, after-sales service and technology consultation of lithium batteries, batteries with large-scale energy storage capacity and battery systems.

The second, temporarily named GAC Amperex Power Battery System Co Ltd, will focus on manufacturing, development and sales of battery systems, technological development, consultation and service.