(Yicai Global) Nov. 23 -- Gotion High-Tech, China’s third-biggest battery maker, has signed a contract to supply at least 10 gigawatt-hours of electric vehicle batteries to Great Wall Motors.
The pair inked a four-year procurement deal that set next year’s supply at no less than 2.5 GWh, per Gotion’s statement yesterday. The agreement will strengthen the long-term cooperation between the two, it added. No financial details were disclosed.
Hefei-based Gotion has total installed capacity of 2.9 GWh, 88 percent of which are lithium iron phosphate batteries.
Gotion’s shares [SHE: 002074] ended 0.7 percent lower today at CNY62.36 (USD9.77) each. Great Wall Motors [SHA: 601633; HKG: 2333] fell 3.3 percent.
Volkswagen China Investment spent about EUR1.1 billion (USD1.2 billion) in May last year to buy 26.5 percent of Gotion, becoming its largest shareholder. They agreed in July to jointly develop and produce lithium battery cells and supply them for Volkswagen’s mass-produced fossil fuel-powered vehicles. Gotion will also become the German auto giant’s standard battery cell supplier.
Great Wall Motor, a private Chinese automaker, relies on its unit Svolt Energy Technology, Contemporary Amperex Technology, and Farasis Energy, for power batteries.
Editor: Futura Costaglione