(Yicai Global) July 3 -- Daimler Greater China and four other strategic investors plan to take part in the listing of Chinese battery maker Farasis Energy on Shanghai’s Nasdaq-like Star Market.

Daimler will buy up to CNY904.5 million (USD128.1 million) worth of the shares to deepen strategic cooperation between the two parties, Farasis said yesterday in the prospectus for its initial public offering.

Daimler announced today that the cooperation agreement includes the development and commercialization of high-energy density batteries to make them cost competitive, increase their energy density, reduce charging time and extend each charge cycle.

The partnership will guarantee supply of batteries for Daimler’s electrification of Mercedes-Benz, as well as Farasis’ output planning. Under certain technical and commercial conditions, Farasis can join the project of the next generation of Mercedes-Benz EQ products at an early stage. Deepening cooperation with Farasis is also a decisive step in the implementation of its ‘Electric First’ strategy, the German automaker said.

Farasis will build a battery plant in Bitterfeld-Wolfen to meet the growing demand of Mercedes-Benz’s German plants, creating more than 2,000 jobs.

Under the agreement, Markus Schafer, a member of Daimler’s board and the chief operating officer of Mercedes-Benz, will also join the board of supervisors of Farasis after regulatory approval.

Founded in 2009 in Ganzhou, Jiangxi province, Farasis Energy Ganzhou mainly produces, develops and sells lithium-ion batteries and vehicle battery systems for new energy vehicles. Its largest shareholder is Farasis Energy Asia Pacific, which has a 28.36 percent stake in the company. Farasis became the power battery supplier of Daimler and its joint venture company Beijing Benz Automotive in China in 2018.

Farasis plans to issue up to 214 million new shares and raise CNY3.44 billion (USD487 million). It will use the funds mainly in the third phase of its Zhenjiang-based lithium-ion power battery project, which has an annual output of 8 gigawatt hours, and as supplementary working capital. The IPO will boost the company’s valuation to CNY30 billion, the prospectus said.

Editor: Peter Thomas