(Yicai Global) Dec. 12 -- Chongqing Sokon Industrial Group Co. [SHA:601127] will invest about CNY2 billion (USD300 million) to build a high-performance automotive power battery with an annual output of 5.2GWh in Chongqing municipality in southwest China as part of its strategy to equip high-end electric vehicles with battery, engine and electronic control system.
The company has inked a project promotion cooperation agreement with Shapingba district people's government of Chongqing municipality where the project is located, the company said in a statement yesterday. The project will be constructed in two phases with a total construction period of 30 months. The internal rate of return netting the investment income tax of the project is estimated to be 30.32 percent, it said.
Chongqing Sokon will also initiate an industrial investment fund valuing CNY3 billion jointly with Chongqing's local fund management companies for the new energy vehicle (NEV) project. Sokon will subscribe for 15 percent of the inferior limited partnership shares, amounting to CNY450 million. The fund will be used in Sokon's future projects related to the battery, engine and electronic control system, as well as relevant upstream and downstream projects and enterprise investment.
Sokon obtained necessary approval documents issued by the National Development and Reform Commission (NDRC), China's top macroeconomic planner, in early 2017, which qualified the company for battery electric vehicle production, the statement added.