To ensure a steady supply of power batteries and support industrial development, BAICBluePark New Energy Technology has revealed its plans to establish a platform company in partnership with BAIC Investment, Beijing Hainachuan.
The registered capital of the platform company is 390 million yuan (54 million USD). The platform company will function as the management and investment entity and partner with CATL and Xiaomi Auto to jointly establish Beijing Era New Energy Technology Co., Ltd.
The joint venture company has a registered capital of 1 billion yuan (equivalent to 138 million USD), with contributions from the platform company accounting for 39% (390 million yuan or 54 million USD), CATL contributing 51% (510 million yuan or 71 million USD), and Xiaomi Auto contributing 5% (50 million yuan or 6.9 million USD).
Following the establishment of the joint venture company, it will invest in the construction of an intelligent battery cell manufacturing plant in Beijing.
As per the announcement, BAIC Investment and Beijing Hainachuan are related parties of BAIC BluePark, thereby constituting a related party joint investment transaction. BAIC BluePark operates in the new energy vehicle sector with the renowned Arcfox brand.
The proposed joint venture company’s scope of operations encompasses the development, production, and sale of lithium-ion batteries, power batteries, and energy storage batteries. Furthermore, it will offer related after-sales and technical consulting services.
The platform company will provide a 39% contribution, while BAIC BluePark will indirectly contribute 5%.
BAIC BluePark highlighted the benefits of this external investment, emphasizing its role in ensuring a stable supply of the company’s power batteries.
Moreover, it will promote the priority application of new power battery products and technologies in the company’s complete vehicle products, which will enhance the market competitiveness of its offerings and facilitate long-term sustainable development.