(Yicai Global) Nov. 28 -- Chinese auto parts supplier Sichuan Chengfei Integration Technology Co. [SHE:002190] has entered a strategic cooperation with German auto parts manufacturer ElringKlinger AG [ETR:ZIL2]. They will set up joint ventures to discover business opportunities for new-energy vehicles and lithium batteries in the global market.

Chengfei Integration said yesterday that it signed an agreement with ElringKlinger to work together to develop, commercialize and distribute lithium batteries and to set up JVs in Germany, the US and China. The firms will each contribute 50 percent to the JVs, and will determine their specific contributions after further consultation of both parties.

In the cooperation, Chengfei Integration will supply battery cells, while ElringKlinger will provide the components required for module assembly. The groups will share the cost for the mass production of batteries and provide products to customers in the automobile industry and other sectors.

ElringKlinger's main focuses are automotive mechanical parts and the new energy business. It has more than 9,000 employees and 49 subsidiaries, including four investment enterprises in China. It is one of the world's few suppliers that can provide high-quality components for the drive systems of both fossil fuel-powered and electric vehicles.

As an auto parts maker backed up by state-owned assets, Chengfei Integration has exported its automotive mold products to the US, the UK and Italy. It is a major Chinese automobile mold exporter.