(Yicai Global) Dec. 21 -- A unit of Geely Automobile Holdings has become the latest carmaker to form a joint venture with Contemporary Amperex Technology, China's biggest traction battery maker by output, to secure a stable supply of power sources for its new energy vehicles.
Hangzhou-based Jirun Automobile and Contemporary Amperex have agreed to set up a JV with registered capital of CNY1 billion (USD145 million), they said in a joint statement yesterday. The battery maker will invest CNY510 million (USD74 million) for a 51 percent stake, while Jirun Auto will chip in CNY490 million for the remainder.
Geely Auto has a great need for electric car batteries. According to the company's plan, NEVs will make up 90 percent of its sales by 2020. Sixty-five percent of them will be hybrids and the rest pure electric vehicles.
Ningde-based Contemporary Amperex produced over 40 percent of all electric car batteries in China in the 11 months through November, followed by BYD.
The three state-owned carmakers of Shanghai Automotive Industry, GAC Group and BAIC Group have all set up JVs with Contemporary Amperex. Chang'an Automobile and Dongfeng Motor also hold stakes in the firm.
Editor: Emmi Laine