Faraday Future has signed a joint venture agreement with The9 Limited, a China-based internet company to manufacture, market, distribute and sell luxury electric vehicles in China.
This also marks a key first step for FF to officially launch its dual-home-market and dual-brand strategy in both China and the US.
The JV's immediate objective is to manufacture, market, distribute and sell Faraday Future's new V9 model, a luxury EV designed and developed by FF. Other future models could be created with additional agreements.
This is the start of a series of actions for FF, designed to support the completion and launch of its 'new species of vehicle mobility' FF 91 EV in 2019 and continue development of the mass-market premium FF 81 under its dual-home-market and dual-brand strategy in both the US as well as China.
FF continues to make progress in the US on the ultra-luxury FF 91 flagship, readying it for final production later this year. FF will work on establishing a team of integrated global R&D employees to support its vendor and supply chain.
With the JVA, The9 will make capital contributions of up to US$600m to the JV, and FF will make in-kind contributions to the JV, including FF's use rights to a piece of land located in China for luxury EV manufacturing and an exclusive licence to manufacture, market, distribute and sell Faraday Future's new brand V9 model and potentially other future car models in China.
Expected annual production capacity of the joint venture is 300,000 cars and the first pre-production car is expected to roll off the line in 2020.
"We are very pleased to see The9, an Internet company with more than a decade of industry experience, to partner with FF, a high-tech internet mobility company, to bring high-quality luxury electric vehicles to the Chinese marketplace," said The9 CEO, Mr Zhu.
"FF has the industry leading product technology and strategies, and a team of top talents and resources. Leveraging the technology capabilities of FF, we believe our alliance with FF provides us with a great opportunity to pursue the fast-growing market of electric vehicles in China."
With The9's first instalment of capital into the JV, the establishment of the JV will help FF to overcome its short-term cash flow difficulties and support ongoing equity financing efforts.
FF's first FF 91 pre-production car was delivered last August at its manufacturing facility in Hanford, California, the company's production site in the US.
Currently, multiple pre-production vehicles are undergoing testing and validation processes, with the goal of final delivery later this year.
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