Guoxuan High-Tech Seals USD276 Million Procurement Contract With BAIC BJEV
Yicai Global
/SOURCE : Yicai
Guoxuan High-Tech Seals USD276 Million Procurement Contract With BAIC BJEV

(Yicai Global) June 2 -- BAIC BJEV, the new-energy vehicle subsidiary of China's state-owned automaker -- BAIC Group -- will purchase USD276 million (CNY1.875 billion) worth of electric vehicle battery systems from Hefei Guoxuan High-Tech Power Energy Co., a wholly-owned subsidiary of Guoxuan High-Tech [SHE:002074], the A-share listed company said in a statement on May 31.

According to the annual battery supply contract, per the statement, Hefei Guoxuan will deliver 50,000 traction battery packs to BAIC BJEV in several batches from May to December. All the supplies will be delivered in batches this year, so the deal will positively effect annual earnings, the company predicted.

Collaborations between leading traction battery manufacturers and major carmakers will enhance their resilience to risks, and introduce high-quality battery products to the market, said Wang Yong, executive vice president at Guoxuan High-Tech, adding that the number of similar partnerships is bound to increase along with the development of the new-energy vehicle market.

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Keywords: Guoxuan High-Tech , Beijing New Energy Automobile , Auto