(Yicai Global) Oct. 18 -- New Sea Union Technology, which makes telecoms equipment, plans to start a joint venture with Gold Cup New Energy in order to develop power batteries for the former's subordinate electric vehicle maker.

Jiangsu-based New Sea will invest CNY10 million (USD1.4 million) for a two-thirds stake in the new company, it said in a statement yesterday. The joint venture will develop powertrain batteries for and aim to buy Gold Cup New Energy components where possible.

The new firm will be the primary cell supplier for Shaanxi Tongjia Automobile, which makes electric vehicles for commercial use, and the joint venture's owners have agreed to build production facilities as close to Tongjia's factory as possible.

New Sea has also penned a deal with Gold Cup New Energy's parent, Gold Cup Electric Apparatus, to set up another joint venture. This company will purchase new-energy logistics vehicles from New Sea.