(Yicai Global) Sept. 29 -- Ningbo-based auto parts maker Huaxiang Group Co. [SHE:002048] plans to partner up with GSR Ventures, a venture capital firm focused on early-stage technology firms, and invest CNY100 million (USD14.99 million) on a 30-percent stake in a joint venture set up by the latter.

The pair and related parties signed a memorandum of cooperation on Sept. 28, Huaxiang said in a statement on Sept. 28. The target company was set up by GSR to bring Nissan Motor Co.'s [TYO:7201] power cell technology to China after it bought the Japanese firm's battery unit.

Under the agreement, the joint venture will set up a power cell firm in China with registered capital of CNY2 billion. Huaxiang may later acquire a stake in the subsidiary through direct investment, the statement added.

The Ningbo-based firm also plans to subscribe to up to USD100 million in shares at GSR Electric Vehicle LP, a buyout fund set up by a GSR Ventures subsidiary to buy Nissan's power technology. Huaxian Group may choose to subscribe at a premium after the deal has been closed.

While using Nissan's battery technology to expand production in China, Huaxiang will be granted investment priority rights for a 10-percent stake in each of the factories, the statement said.

The deal suggests the parts maker may be ramping up cooperation in power cell technology with battery and new-energy vehicle plants, though right now it is only a letter of intent, the agreement isn't final yet, the company added.

Huaxiang Group has actively made moves in the new-energy vehicle sector in recent years, including exploring professional car battery packs, power cell connecting wires, cooling systems, metal shells and shockproof insulation materials.

GSR Ventures' subsidiary has an exclusive license to expand production in China using Nissan's battery technology.