(Yicai) Oct. 11 -- Fulin Precision’s shares climbed after the Chinese auto parts maker said it has allied with a leading developer of humanoid robotics technology, a raw materials supplier, and three other investors to form an android production joint venture.

Fulin Precision [SHE: 300432] closed 6.1 percent higher at CNY10.40 (USD1.47) a share in Shenzhen today, after earlier surging by as much as 12.2 percent. The benchmark ChiNext Index fell 5.1 percent.

Fulin Precision, AgiBot Innovation Technology, Juxing New Materials, a private investor and two equity funds where the investor holds stakes, plan to establish the JV in Chengdu, the Mianyang-based firm announced late yesterday. It will have a registered capital of CNY10 million (USD1.4 million) and invest in, build, and run a plant making humanoid robots.

Humanoid robots represent the next frontier in robotics, melding artificial intelligence and robotics to handle tasks normally done by humans. The global robotics industry is expanding fast, driven by progress in AI, machine learning, and growing demand for automation across various industries.

Set up in Shanghai’s free trade zone last year, AgiBot integrates AI with robotics to make general-purpose humanoid robots. This August, it launched five new commercial androids.

Fulin Precision, AgiBot, and Juxing New Materials will each own 20 percent of the new venture, with the other investors holding 20 percent, 12 percent, and 8 percent, respectively.

Shanghai-based AgiBot will provide a development platform, specialized components, and technical support. The JV will be responsible for secondary design to customize the robots for various real-world uses and will handle sales.

AgiBot will also grant the JV a three-year exclusive or white-label sales authorization for some general-purpose robots in the Chinese mainland and will prioritize Fulin Precision and Juxing for supplies of parts.

Fulin Precision and Juixng will provide professional application scenarios and necessary development support for the production of androids, the former noted, adding that the pair will also preferentially purchase special-purpose robots developed by the JV when needing such products.

Fulin Precision and Juxing will support the development of specialized robots by providing expertise and essential development support for professional application scenarios. Additionally, they will prioritize buying any robots they may need from the JV.

As a supplier of key robotic components, Fulin Precision will provide the JV with critical parts, such as precision speed reducers and smart electric joints, while Juxing will mainly supply the rare-earth materials that are used in electric motors.

Editor: Martin Kadiev