China's Geely Automobile Holdings and Contemporary Amperex Technology Co Ltd (CATL) have agreed to invest in a new lithium-ion battery joint venture company in China.
Geely's 99%-owned subsidiary Zhejiang Jirun and CATL together plan to establish a new company with a capitalisation of CNY1bn (US$145m) that will engage in the development, manufacture and sale of lithium-ion battery cells, modules and packs.
The joint venture, which will be 49%-owned by Zhejiang Jirun and 51% by CATL, will help secure a steady supply of lithium-ion batteries for Geely as it lifts output of electric and hybrid vehicles in the country. Geely also owns Swedish carmaker Volvo Cars, the UK's Lotus Cars and black cab maker The London Electric Vehicle Company and a major stake in Malaysia's Proton Holdings.
CATL also suppliers EV batteries to leading global carmakers such as Volkswagen, Daimler, BMW, PSA Group and Hyundai, as well as a large number of domestic vehicle manufacturers. It has three manufacturing plants in China and is currently building a manufacturing facility in Germany.
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