Hong Kong-listed FDG Electric Vehicles has reportedly started the first-phase of construction of its EVs and batteries production facilities in Jianyang, in China’s Sichuan Province, according to the state Xinhua News Agency.
The total investment in the first phase of the project is CNY4 billion ($636 million), Xinhua said.
Production will start next year in a ‘demonstration phase’ when capacity is expected to be around 100,000 EVs and 1GWh of batteries annually.
Construction follows an agreement last September between FDG and the Jianyang government for an eventual two-phase project— with an overall production capacity of 400,000 pure EVs and 4GWh of automotive lithium-ion batteries each year.
Under the terms of the agreement, a total amount of CNY16bn will be eventually invested in the project, of which CNY3bn is for battery production and the remainder for EVs development.
BBB reported in 2015 that FDG sold a stake in its lithium-ion battery production unit to private-equity investor CIAM Group for HK$750m.
