New joint ventures aim to slash price of electric vehicles
Chinese automaker Guangzhou Automobile Group Co Ltd (GAC Group) and battery manufacturer Contemporary Amperex Technology Ltd (CATL) announced they will set up two new joint ventures to produce and sell batteries for new-energy vehicles, according to a statement published on Thursday.
"The joint ventures are going to deepen cooperation between CATL and GAC Group in the field of new-energy vehicles. We will fully take advantage and leverage the resources of both parties to further expand business scale, and enhance profitability and competitiveness," CATL said in a statement.
China plans to further accelerate the development of battery-related technologies to boost the industrial upgrade of the new-energy vehicle sector. Batteries play an important role in electric vehicles as they account for nearly 50 percent of the entire cost.
Therefore, automakers are actively collaborating with battery manufacturers in order to enhance technological capability and secure battery supply for their new-energy vehicles.
According to GAC Group and CATL, the two new joint ventures will be located in Guangzhou. The business scope, registered capital and shareholding structure of the two new joint ventures are different.
With registered capital of 1 billion yuan (US$148.9 million), the first joint venture, temporarily named Amperex GAC Power Battery Co Ltd, will focus on manufacturing, development, sales, after-sales service and technology consultation of lithium batteries, batteries with large-scale energy storage capacity and battery systems. GAC Group and CATL will hold 49 percent and 51 percent stake of the joint venture respectively.
The second joint venture, temporarily named GAC Amperex Power Battery System Co Ltd, will focus on the manufacturing, development and sale of battery systems as well as technological development, consultation and service. The registered capital of the second joint venture is 100 million yuan. GAC Group and CATL will hold 51 percent and 49 percent stake of the joint venture respectively.
Both parties aim to achieve long-term profitability and sustainable development through the joint ventures.