Geely To Collaborate With CATL To Manufacture Batteries For EVs
For starters, CATL is world leader in batteriesby Sidd Dhimaan, on
The auto industry is moving towards an EV-olution, and all automakers have taken part in the rat race to gain a lead. While smaller automakers are outsourcing the batteries, bigger players are getting into production themselves. Geely’s subsidiary, Zhejiang Jirun Automobile, will collaborate along with Contemporary Amperex Technology Co Ltd. (CATL) in a joint venture to set up a battery-manufacturing plant.
It’s All About Batteries
According to a statement issued by both the companies, they will setup a joint venture for the research and development, manufacturing, and sales of batteries, battery modules, and battery packs to enhance their core competence and the ability of sustainable development.
The joint venture will be named CATL Geely Power Battery Co. Ltd, and CATL will hold a 51-percent stake in it. Geely will hold a 49-percent stake.
The joint venture will have a registered capital of RMB 1 billion.
It Takes Two Hands To Clap
The Chinese manufacturer expects the new joint venture to help with the stable supply of key components in electric vehicles. Both CATL and Geely will enjoy complementary advantages and integrate sources to prepare for the “post-subsidies era” in new energy vehicle segment.
Even though Geely is a mainstream car manufacturer, it has been making terrific strides in the field of electrification and holds around 300 patents in new energy core technologies.
It has also formed an integrated industry supply chain in the new energy vehicle segment. The cooperation with CATL will offer strong system support for the implementation of its new energy vehicle strategy.
What Are Their Credentials?
Geely has been riding high on new energy vehicles.
The automaker sold more than 10,000 units in November, and by 2020 Geely will launch nearly 40 new energy vehicle models with competitive prices and outstanding performance.
As far as CATL is concerned, it has entered into partnership with many global automakers, such as Volkswagen, BMW, Daimler, and Jaguar Land Rover. CATL has also marked its presence in the Chinese market by teaming up with local players like GAC Group and SAIC Motor.
With this upcoming joint venture, the rivals will definitely have a tough time keeping the costs in check. Can we see Volvo benefitting from this? Let us know your thoughts in the comments section below.