(Yicai Global) July 29 -- Shares in the listed units of Geely Holdings and battery maker Sunwoda Electronic climbed after they announced a plan to set up a power battery joint venture to increase the Chinese automaker’s electric vehicle output.

Geely Auto’s stock price [HKG:0175] finished 7.6 percent higher today at HKD25.55 (USD3.29), while Sunwoda Electric [SHE:300207] ended 13.5 percent up at CNY35.09 (USD5.43).

Hangzhou-based Geely will own 70 percent of the JV and Sunwoda the rest, the listed units said late yesterday. The new company, which will build a power battery production plant, has registered capital of CNY100 million (USD15.4 million).

The project’s first phase will have annual capacity of at least 600,000 batteries for hybrid EVs, while the second phase will increase that to a minimum of 800,000. Geely will buy at least 80 percent of its battery packs from the factory. Further details, such as the investment amount, production start and location, were not provided.

The project will guarantee stable supplies to Geely, as well as effectively reduce its production costs, the carmaker said. The partnership will help Sunwoda win medium and high-end customers both in China and overseas, the Shenzhen-based battery maker noted.

Sunwoda has been expanding its lithium battery business from consumer batteries to vehicle power batteries in recent years. It has already partnered with many well-known Chinese automakers, including Dongfeng Motor, SAIC-GM-Wuling Automobile, and Guangzhou Automobile Group.

Editor: Futura Costaglione