(Yicai Global) Feb. 20 -- Battery giant Contemporary Amperex Technology has agreed to set up a battery joint venture with leading carmaker Changan Automobile Group and its new energy vehicle subsidiary, as NEV sales in China increase.

The JV will have a registered capital of CNY1.5 billion (USD218.4 million), Changan Auto announced on Feb. 17. The Chongqing-based carmaker will contribute 19 percent, Changan NEV Technology 30 percent, and CATL the rest, it added.

Changan Auto also has increased its stake in Changan NEV to 51 percent from 41 percent, the firm noted, after announcing the plan in December. The deal aims to strengthen the strategic coordination and resource allocation between the two firms and accelerate the unit’s development into a leader in the digital electric vehicle industry, it pointed out.

Changan Auto has tie-ups will domestic and international battery makers, and it will focus on expanding its battery system integration production capacity to meet NEV development needs, it said in early 2017.

Shares of Changan Auto [SHE: 000625] closed 1.4 percent higher at CNY13.44 (USD1.96) apiece today. The ChiNext Index, which tracks growth stocks in Shenzhen, jumped 1.3 percent.

Editor: Martin Kadiev