(Yicai Global) June 10 -- The joint venture between Faraday Future, an electric car startup of Chinese entrepreneur Jia Yueting, and The9 will build a CNY6 billion (USD865.7 million) car factory in Hohhot, the capital city of Inner Mongolia.
The9 has penned a memorandum of understanding with the Shaerqin Industrial Zone to secure at least 5,000 mu (3.3 square kilometers) of land, the Shanghai-based game operator said in the statement today. The Shaerqin will support the JV to get a permit to make new energy vehicles in the area.
The9 and Faraday teamed up in March to produce and sell electric vehicles in China. This involves that The9 will invest up to USD600 million to the JV in three injections. The JV is expected to produce 300,000 units annually after rolling out the first mass-produced model next year.
The9 and the zone will jointly set up an industrial fund for the project. The9 and its affiliates will invest at least CNY500 million (USD72.1 million) and the local government will offer a minimum of CNY1.5 billion. Industrial funds and banks will provide a loan of CNY4 billion.
Los Angeles-based Faraday's first model of its own, FF91, will enter mass production in mid-2020 and sell for around USD250,000, China Times reported, citing an executive who wished to remain anonymous.
Editor: Emmi Laine