(Yicai Global) Sept. 7 -- JAC Motors, in which Volkswagen has an indirect stake, will join hands with new energy vehicle giant BYD to build a power battery plant, making it one of the increasing number of automakers to make their own batteries.

The partners will also include JAC-controlled bus maker Ankai Automobile, as well as third-party investor Zhechu Energy Group, besides JAC and BYD’s battery production unit FinDreams Battery, Hefei-based JAC said in a statement late yesterday.

Ankai Auto will be the JV’s largest shareholder with 45 percent in hand, JAC will hold 20 percent, while Zhechu is set to take 23 percent, and FinDreams 12 percent. All the investors will pay in cash, except BYD's FinDreams which will use cash and equity.

Ankai Auto’s shares [SHE: 000868] surged by the daily trading limit of 10 percent to end today at CNY7.72 (USD1.11) apiece. The stock has climbed 34 percent since Sept. 2.

BYD [SHE:002594] also gained, closing up 3.6 percent at CNY282.70 (USD40.51), after jumping by as much as 4.4 percent intraday. But after climbing 18 percent earlier this week, JAC [SHA: 600418] fell 1.8 percent to CNY17.35 (USD2.49).

The JV will have registered capital of CNY1 billion (USD144.2 million) and a battery plant with 10 gigawatt-hours to 20 GWh in annual capacity. The location and the construction schedule have not been decided yet, JAC said.

The plant will turn out power batteries for commercial vehicles, including the standard iron phosphate and ternary batteries as well as BYD’s blade power packs.

The partners agreed that the blade batteries made based on phosphate materials will be used only in the three automakers’ vehicles, and will not be sold to third parties, to prevent any possible malfunctions, JAC noted.

Volkswagen owns half of JAC Motors’ parent company Jianghuai Automobile Group Holdings. Volkswagen China also has a 75 percent stake in a JV with JAC, which is also makes cars for China’s leading electric vehicle startup Nio.

Editor: Emmi Laine, Xiao Yi