(Yicai Global) April 9 -- A  unit of French energy giant Total has partnered with a subsidiary of  Chinese battery maker Tianneng Group to enlarge its presence in the  lucrative new energy vehicle market in China. 

Saft Groupe has inked an  agreement with Tianneng Energy Technology to set up a joint venture in  order to expand its lithium-ion battery business in China, the  Courbevoie-based parent said in a statement. Saft will have 40 percent  of the JV's equity, and the Chinese partner will hold the remainder.

The JV will mainly focus  on the development, manufacturing and sales of advanced Li-ion cells,  modules and battery packs for China as well as worldwide. Production  will take place in Tianneng's hometown of Changxing in eastern Zhejiang  province, with a potential capacity of 5.5 gigawatt hours, which may  prompt an expansion of an existent plant.

The partnership will give  Saft access to China's booming battery market as well as  highly-competitive mass production capacity to accelerate its growth,  said Chief Executive Patrick Pouyanne.

China is the world's  largest NEV market, and the Li-ion sector is expected to represent over  40 percent of the global demand by 2025, according to the statement.

Editor: Emmi Laine