The joint venture aims to create a new energy truck ecosystem to help cities' electrification transition, CATL said.

(Image credit: CATL)

Chinese power battery giant CATL and FAW Jiefang, the commercial vehicle division of the FAW Group, have formed a joint venture to explore the new energy commercial vehicle market.

On August 18, CATL and FAW Jiefang held an inauguration and signing ceremony for the joint venture, Jiefang Shidai New Energy Technology Co Ltd.

The business of the joint venture will include new energy commercial vehicle sales, carbon credit trading, vehicle leasing, and exploration of body and battery separation business model, with the aim of creating a new energy truck ecological chain to help cities' electrification transition, CATL said.

The two sides will build a new energy commercial vehicle operation center around the needs of multiple scenarios including resource transportation, municipal engineering, urban sanitation, logistics and distribution, said Zhou Jia, vice chairman of the battery giant.

CATL's press release did not provide more meaningful information, though there has been some exploration in the company's commercial vehicle sector.

On February 22, CATL and Chinese heavy equipment maker Sany Heavy Industry put into operation battery swap-enabled heavy trucks and dump trucks that they built together in Ningde, Fujian province.

These heavy trucks and dump trucks are powered by CATL's high-capacity lithium iron phosphate batteries, which support both high-power fast charging and quick battery swaps in 3-5 minutes, according to a release in February.

This can help eliminate the anxiety caused by heavy truck vehicles in terms of charging time and range, and can improve the efficiency of vehicle operations, CATL said at the time.

CATL's power battery installed base in China in July was 11.41 GWh, continuing to rank first with a 47.19 percent share, according to data released by the China Automotive Battery Innovation Alliance on August 11.

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