Gotion plans to set up the institute with Hong Kong-listed Envision to conduct research on battery energy storage system technologies and business models.

(Image credit: Gotion High-tech)

Power battery giant Gotion High-tech (SHE: 002074) plans to set up an institute in Hong Kong to focus on low-carbon technology research and development.

Gotion recently entered into a partnership with Hong Kong-listed Envision Greenwise Holdings (HKG: 1783), planning to jointly set up a low-carbon research institute in Hong Kong, according to a statement from the battery maker today.

The two will work together to conduct joint research on new technologies and business models for battery energy storage systems (BESS), and to promote the research, development, application and trading of low-carbon technologies globally, the statement said.

The partnership will help further promote the company's globalization in low-carbon technology research and development and energy storage business expansion, Gotion said.

Gotion and Envision have previously planned to cooperate globally to develop energy storage EPC (Engineering, Procurement, Construction) projects, as well as to build and operate projects including battery recycling, according to the statement.

Envision is a new energy service provider that offers one-stop green power solutions to customers around the world, and has built up a wide range of cooperation channels and sales networks globally, the statement noted.

Gotion is one of the largest battery makers, ranking fourth in China with a 4.83 percent share in January, according to the China Automotive Battery Innovation Alliance (CABIA).

In the global market, Gotion ranked No. 8 with a 2.4 percent share in 2023, according to South Korean market researcher SNE Research.

In an earnings preview on January 29, Gotion said it expects to post a net profit of RMB 800 million ($111 million) to RMB 1.1 billion in 2023, up 157 percent to 253 percent from RMB 311 million in 2022.

The company's lithium battery business was growing at a high rate, benefiting from the rapid development of the new energy industry and strong market demand for power and energy storage batteries, Gotion said.

($1 = RMB 7.1981)

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