China has given a conditional approval for an electric vehicle (EV) nickel metal hydride battery joint venture (JV) between Toyota and Panasonic’s Primearth and two other Toyota units, Hunan Corun and Changhsu Sinogy.
The JV is called Corun PEVE Automotive Battery Co. and it aims to focus on the production of nickel-metal hydride batteries for hybrid cars.
The Chinese government has stated that the JV may restrict or exclude competition in the Chinese and the global marketplace for nickel-metal hydride batteries. The Chinese Ministry for Commerce has also asked the co-ownership venture to conform to fair, reasonable and nondiscriminatory business principles by selling its products extensively to third-party buyers.
According to the government, Primearth, Panasonic Hunan Corun and Johnson Controls have dominated the nickel-metal hybride market by 97% of the market share. The ministry said that such a combination will strengthen the common interest of companies and therefore embank the development of other businesses.
Primearth will own 41%, Toyota’s other units, Toyota Motor China and Toyota Tsusho will own 4% and 5% of the JV respectively. Hunan will own 40% and Changshu Sinogy 10%.
China is currently very active in enabling EV businesses to grow as the government decided to tackle the dependence of fossil fuels and high emission levels.
