(Yicai Global) March 7 -- Car components firm Sichuan Chengfei Integration Technology Corp. will set up a joint venture with Germany's Continental AG for the research and development, production and sales of low-voltage batteries used in new energy vehicles.

China Aviation Lithium Battery Research Institute Co., a unit of Chengdu-based SCIT, will link up with Continental Automotive Investment Co. to run the CNY130 million (USD20.47 million) JV, the company said in a statement.

Continental is the first European company to advance the concept of low-voltage battery systems and its products have become benchmarks for the industry, SCIT said.

The JV will aim to tap China's fast-growing NEV market, which saw sales of plug-in cars reach 605,500 last year, accounting for almost half of the total global NEV market, data from industry researcher EV Volumes shows.

Continental Automotive Investment and Lithium Battery Research Institute will contribute CNY78 million and CNY52 million in cash, respectively, for the firm's registered capital.

The JV's establishment will see SCIT and partner Jiangsu Jintan Hua Luogeng Technology Industry Development Co. raise their capital investment in Lithium Battery Research Institute in accordance with their existing shareholding ratios, pumping CNY18.2 million and CNY52 million into the firm, respectively. Their stakes in the institute will remain unchanged at 35 percent and 65 percent after the capital increase, the statement said.