Lithium battery manufacturer Contemporary Amperex Technology Limited (CATL) has reached an agreement with Chinese peer Geely Auto, to form a joint venture company that will develop and produce batteries for electric vehicles.
The newly formed company— called CATL Geely Power Battery (CATL Geely)— will “ensure the stable supply of high-performance components for Geely Auto’s next generation of electrified vehicles.”
CATL Geely will be established with registered capital of 1 billion CNY (145.5 million USD), which will be provided by the two partner companies. CATL will hold a 51% stake in the JV company, with Geely Auto holding a 49% stake.
Geely Auto’s pure electric and electric unit sales exceeded 10,000 units in November 2018, marking a 31% year-over-year increase. The company intends to launch “almost 40 new energy and electrified models” by 2020.
“Geely Auto will work together with partners such as CATL to build a global industrial value chain [and] become the global leader in new energy and energy-efficient technologies” commented An Conghui, President and CEO of the Geely Auto Group.
