(Yicai Global) March 23 -- Chinese automaker GAC Group will invest about CNY5 billion (USD779 million) to build infrastructure for new energy vehicles such as charging and battery-swapping services, forming a battery recycling system.

GAC will also set up a CNY1 billion project company, in which it will hold a 55 percent stake, the Guangzhou-based firm said in a statement late yesterday. Its NEV unit GAC Aion will own the rest.

In addition to building charging, battery swapping and battery recycling infrastructure, the project firm will develop collaborative and interactive smart-charging and battery-swapping services, technologies and corresponding products involving cars, stations and networks to improve energy storage technology, GAC said.

It did not provide more details about the planned project.

GAC launched its ‘2⁶ Energy Campaign’ at the China Motor Show in Guangzhou last year to promote the flexible use of power batteries, which means consumers can choose the charging mode after a one-time buyout or they can also choose the rental-based battery-swapping mode.

The automaker also promoted the recycling of battery products and cascade utilization during their different life stages through this campaign. But GAC has yet to launch any NEV model that can swap batteries.

Last week, GAC Aion announced the completion of a CNY2.6 billion (USD404 million) A-round fundraiser through which it introduced strategic investors with state-owned enterprise backgrounds and implemented equity incentive arrangements for important employees and researchers.

The NEV unit is expected to complete a spin-off and listing on the Shenzhen Stock Exchange’s Nasdaq-style ChiNext board by the end of this year at the earliest.

Since debuting its first NEV model in April 2019, GAC Aion has launched a number of pure electric vehicle models, and its sales in 2021 exceeded 100,000 for the first time, reaching 124,000 units.

Editor: Peter Thomas