(Yicai Global) Jan. 11 -- Baidu has confirmed that the Chinese search engine giant is partnering with automaker Geely Holding Group to make smart new energy vehicles following a media report last week.

Beijing-based Baidu will set up a new operationally independent unit to partner with Geely, it said in a statement today, without disclosing any financial details. The new company will handle research and development, manufacturing and sales.

Reuters reported on Jan. 7, citing unidentified sources, that Baidu was planning to team up with Hangzhou-based Geely on its first electric vehicle. The tech firm’s stock price [NASDAQ: BIDU] soared 16 percent to USD240.25 on Jan. 8.

Baidu will support the venture with its full portfolio of core technologies, including autonomous driving platform Apollo, artificial intelligence system DuerOS, and Baidu Maps, while Geely will contribute expertise in car manufacturing, the statement said.

Shares of Geely [HKG: 0175] closed almost 2.7 percent lower today at HKD32.40 (USD4.18) each.

Editor: Emmi Laine