(Yicai Global) May 13 -- Shanghai Electric Group Co. [SHA:601727], one of China's major power equipment makers, and Hefei Guoxuan Hi-tech Power Energy Co. [SHE:002074], a new-energy vehicle battery developer, will set up a joint venture to work on energy storage technology for NEVs.
The two firms released separate announcements about the cooperation yesterday. Shanghai Electric plans to contribute CNY90 million (USD13 million) in cash and CNY45 million in technology for a 45-percent stake in the JV. Guoxuan Hi-tech's CNY129 million cash outlay will get it a 43-percent holding. Technical teams from both companies will each shell out CNY18 million in cash for 6-percent shares.
Guoxuan Hi-tech said that this move will help it refine its strategic landscape centered on energy storage batteries with lithium-titanate cathodes, expand its market, and cement its role as a leading manufacturer of lithium batteries for new-energy automobiles.