The vehicle manufacturer Geely is founding a joint venture with the battery cell manufacturer Contemporary Amperex Technology (CATL). The joint venture will be called CATL Geely Power Battery and will launch with a starting fund of one billion Yuan (130 million euro) by the two partners.
CATL will hold the majority share of the venture with 51 per cent. In addition to research and development, the partners have named the production and sale of battery cells, modules and packages as the core task of the venture. Geely also stated that the advantage of the cooperation is that it ensures a stable supply of key components for the next generation of electric vehicles.
The Chinese carmaker hopes that this will also lower the procurement price for parts and consequently increase the competitiveness of electric cars. According to the latest information, Geely intends to launch 40 new electric vehicles on the market by 2020; in May of this year, there was still talk of 30. In China, it seems everything is going a little faster.
CATL, on the other hand, will benefit from Geely’s technical know-how in EV construction. Together, the development of lithium-ion batteries can be accelerated, and battery design improved, according to the companies.