The German enterprise ElringKlinger (EK) has signed a framework agreement on a joint venture (JV) for lithium-ion battery technology with Sichuan Chengfei Integration Technology Co Ltd (CITC) from China.
The JV will focus on the development, production, and distribution of lithium-ion battery modules for the global automotive market in Asia, Europe, and the United States.
Under the terms, CITC is in charge of the electrochemical constituents of the battery cell production through its national-owned subsidiary, China Aviation Lithium Battery Co., Ltd., which produces batteries and power supply systems for electric vehicles and the energy storage market.
Meanwhile, EK will be working on the remaining components of the module, such as cell contact systems and cell housings, as well as battery module design and production.
The agreement between the two car components manufacturers initially runs for a ten years period up to December 2027.
The location and capacity of the project are unspecified in the framework agreement.
In order to pursue “a sustained improvement in market penetration”, the two companies can gain access to mutual resources, will benefit from each other’s expertise and the many years of experience amassed by both companies in various sub-disciplines of battery technology, said EK.
EK CEO Dr Stefan Wolf, said: ” CITC now has at its side a global automotive supplier with expertise in industrialisation and sales, while ElringKlinger will in future be working with one of the leading cell producers.”
“This is another important step forward with regard to our strategic positioning in the area of sustainable mobility,” Wolf added.