Chongqing company plans joint venture with Boston-Power
Chongqing Zongshen Power Machinery Co. last week signed a memorandum of understanding with Boston-Power Inc. on the establishment of a joint venture facility in China to make batteries for electric vehicles.
The joint venture will be incorporated in the southwest China city of Chongqing where Zongshen is located. It will produce battery packs for motorcycles, three wheelers and electric cars, the private Chinese company said in a statement.
The two sides expect to sign a full joint venture contract before the end of October this year and to jointly participate in an international electric vehicle exhibition to be held in the south China city of Shenzhen in November.
Listed on the Shanghai Stock Exchange, Zongshen has long been a motorcycle maker. In late 2009 the company announced its plan to make batteries for alternative energy vehicles.
In November last year, Zongshen purchased $200,000 worth of batteries and battery management systems from Boston-Power for testing purposes.
