GAC forms 2 joint ventures with CATL to ensure EV battery supply
Guangzhou Automobile Group Co. is establishing two joint ventures with leading domestic battery maker Contemporary Amperex Technology to build electric-vehicle batteries for its vehicle brands as well as its joint ventures with global automakers.
One of the joint ventures will produce battery cells. With 1 billion yuan ($148 million) in registered capital, it will be structured as a 49-51 partnership between GAC and CATL.
The other joint venture will assemble battery systems. It will be 51 percent owned by GAC with the remaining 49 percent interest to be held by CATL.
Additional information about the two joint ventures wasn’t disclosed.
GAC produces and marks passenger vehicles under the Trumpchi brand. It also operates car joint ventures with Toyota Motor Corp., Honda Motor Co., Mitsubishi Motor Corp. and Fiat Chrysler Automobiles.
In the first half of the year, GAC and its joint ventures delivered more than 1 million light vehicles, an increase of 5.4 percent from the same period last year.
CATL, based in Ningde in east China’s Fujian province, is China’s largest EV battery manufacturer and supplies batteries to a wide range of domestic and global automakers.
CATL recently signed deals with BMW Group and BMW Brilliance -- BMW’s joint venture with Brilliance China Automotive Group Holdings -- to build EV batteries for the German luxury carmaker in Germany and China.