(Yicai Global) March 15 -- A unit of China's Geely Holding Group will spend CNY30 billion (USD4.6 billion) to build a new energy vehicle battery factory in southeastern China.
Geely Technology penned an agreement with Ganzhou's municipal government about the project with an annual capacity of 42 gigawatt-hours, Gannan Daily reported yesterday.
Geely's new energy and aerospace arm will first invest CNY8.5 billion (USD1.3 billion) to create a capacity of 12 GWh at a plant of 0.3 square kilometers. After that, it will spend CNY21.5 billion to raise the output by 30 GWh in an area double the earlier.
The Zhejiang province-based parent will establish a pure electric vehicle company, Chairman Li Shufu said in February. Last December, car unit Geely Automobile Holdings set up a joint venture with Contemporary Amperex Technology to make batteries for the auto firm's NEVs.
So far Geely Auto's NEVs have lagged behind its combustion engine cars. From January to February, its total sales were almost 233,550 units whereas NEVs, such as Geometry A, Geometry C, and Emgrand EV, made up only 3 percent of that.
Editor: Emmi Laine