GAC Group of China and CATL will set up two battery joint ventures, according to resolution of GAC board of directors unveiled on Dec. 14.
GAC and its wholly owned subsidiary GAC New Energy will contribute 430 million yuan and 60 million yuan, owning 43% and 6% stakes, respectively, to the first joint venture, with 1 billion yuan in registered capital, which will entail investments totaling 4.226 billion yuan.
The joint venture will produce lithium-ion battery, power battery, and ultra-large capacity battery, plus related after-sales services and technological consulting.
Meanwhile, GAC and GAC New Energy will contribute 25 million yuan and 26 million yuan, for 25% and 26% stakes, respectively, to the second joint venture, which, will 100 million yuan in registered capital, will entail total investments of 231 million yuan.
The joint ventures come on the heels of joint ventures set by CATL Battery with Beijing Automotive Group and SAIC.
Such joint ventures will help the battery maker secure long-term orders from automakers, which, in turn, will receive robust boost to their business development.