China’s top battery supplier, CATL, entered a joint venture with Xiami Auto and Chinese state-owned BAIC to build an intelligent battery cell plant. The upcoming battery cell manufacturing plant will be built under the jointly established Beijing Era New Energy Technology Co., Ltd.
The joint venture company will cover the development, production, and selling of lithium-ion batteries, power batteries, and energy storage batteries. It will also offer after-sales and technical consulting services.
BAIC announced plans for the joint venture on March 11, 2024. The Chinese state-owned automaker will establish a platform company with BAIC Investment, Beijing Hainachuan. BAIC’s platform company will serve as the management and investment entity of Beijing Era New Energy Technology Co., Ltd.
Beijing Era New Energy Technology Co., Ltd.’s capital is $138 million. BAIC’s platform company is contributing $54 million, or 39% of the capital. Meanwhile, CATL is contributing $71 million, accounting for 51% of the capital. Xiaomi Auto is contributing $6.9 million, accounting for 5% of the capital.
In January, CATL announced plans to build its first battery manufacturing plant in Beijing to supply cells to Li Auto and Xiaomi. Xiaomi Auto debuted its first EV concept, the SU7 EV, in December 2023.
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