Abstract : CATL (300750.SZ) announced on Thursday that it will set up two joint ventures (JVs) for automotive power battery products with Guangzhou Automobile Group Co., Ltd (GAC Group) in south China’s Guangzhou City.

BEIJING, July 19 (Xinhua) -- CATL (300750.SZ) announced on Thursday that it will set up two joint ventures (JVs) for automotive power battery products with Guangzhou Automobile Group Co., Ltd (GAC Group) in south China’s Guangzhou City.

According to a filing to the stock exchange, the Shenzhen-listed company will contribute 49 million yuan to a JV with GAC as the first party, representing a 49-percent stake in the JV, while GAC will contribute 51 million yuan and take a 51-percent stake in it.

In the other JV with CATL as the first party, the Shenzhen-listed company will contribute 510 million yuan and take a 51-percent stake in it, while the GAC Group will take the rest.

The JVs will be engaged in development, production, sales of the lithium-ion batteries, power batteries, ultra-large capacity energy storage batteries, and battery systems, and related after-sales and technical consulting services.

Establishment of the JVs will help it realize the stable supply of major components of new energy vehicles, reduce the procurement cost of major components, and promote the development of its new energy vehicles, said the GAC Group. (Edited by Li Haoran, hupingchao@xinhua.org)