(Yicai Global) Aug. 19 -- Contemporary Amperex Technology is teaming up with truck manufacturer FAW Jiefang Automotive to set up an after-sales service for electric trucks, including a battery swap network, to extend the Chinese electric car battery giant’s footprint in the new energy commercial vehicle market.

The pair will invest CNY500 million (USD73.4 million) in a joint venture which will build an ecological chain of new energy trucks and promote the electrification of urban logistics, CATL said yesterday on its WeChat account. The exact share holding ratio was not mentioned.

The JV, which will be located in Zhengding county, northern Hebei province, will build a battery swap network for commercial vehicles, said Hu Hanjie, chairman of FAW Jiefang, which is a unit of auto giant FAW Group. It aims to have more than 100 battery swap stations serving 20,000 new energy trucks in more than five cities by 2025.

The JV will also provide battery lending, vehicle leasing as well as used battery and auto recycling services all of which will help reduce the costs of purchasing and running electric trucks, Hu said.

The JV should achieve cumulative revenue of CNY1.5 billion (USD220 million) by 2025, Hu said. It will contribute almost CNY100 million (USD14.6 million) in taxes and provide over 1,000 jobs.

This is CATL’s second tie-up in the commercial vehicle sector in less than two weeks. On Aug. 9, the Ningde, southeastern Fujian province-based firm signed a 10-year agreement with China’s biggest bus manufacturer Yutong Bus to develop technologies for batteries used in buses, trucks and tractors.

Editor: Kim Taylor