Geely, LG Chem Join Hands to Make EV Batteries
Zhang Yushuo
DATE:  Jun 13 2019
/ SOURCE:  yicai
Geely, LG Chem Join Hands to Make EV Batteries Geely, LG Chem Join Hands to Make EV Batteries

(Yicai Global) June 13 -- A unit under Zhejiang Geely Automobile Holding has teamed up with LG Chem to make batteries for electric vehicles as the Chinese carmaker looks to extend its reach into the EV cell sector.

Shanghai Maple Guorun Automobile and LG Chem, South Korea's largest chemicals firm, will each take a 50 percent share in a USD188 million joint venture formed to produce the batteries, Geely said in a statement yesterday. The pair have agreed to work together for 20 years but may extend the deal.

Shares in Geely [HKG:0175] opened 0.94 percent higher at HKD12.82 (USD1.64) this morning but quickly followed the benchmark Hang Seng Index to fall to more than 1 percent below yesterday's close by 9.40 a.m.

The move follows an agreement Geely subsidiary Zhejiang Jirun Automobile and Contemporary Amperex Technology, the world's largest battery maker, signed in December. The two firms pumped CNY1 billion (USD145 million) into a joint venture to make cells, battery modules and battery packs for Geely EVs.

Geely's newest joint venture will combine its own vehicle manufacturing experience and LG Chem's expertise in the new-energy vehicle battery sector to ensure Geely cars have a stable supply of power batteries, the statement added.

Editor: James Boynton

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Keywords:   Zhejiang Geely Automobile Holding,NEV