Shanghai (ZXZC)- According to local media, Baoneng new energy vehicle (NEV) production base in Xixian New Area, Shaanxi Province (hereinafter Xixian base) officially started construction on March 23. The Xixian base, involving a total investment of around RMB 40 billion, possesses a planned annual production capacity of 1 million units of NEVs and other supporting facilities. Besides, it is expected that the output value of vehicles and auto parts will exceed RMB 100 billion per year. Meanwhile, the unveiling ceremony of the Baoneng Auto Innovation Research Institute was held on the same day.

Baoneng Group and local government will join hands to build vehicle manufacturing plants in the Xixian base, including four technology workshops, stamping, welding, painting and assembly, the technology workshops of batteries, electric motors and electric control as well as the manufacturing workshops of core auto parts. In the meantime, the auto part industrial park will be constructed.

Once the Xixian base is completed, it is expected that the base will provide around 35,000 jobs there and drive the development of many industries, such as auto marketing, auto financing and aftermarket services, etc.

The Xixian base is the fourth NEV base of Baoneng Group. Previously, the group has signed agreements with local governments of Fuyang (in Hangzhou Province), Guangzhou Development District (in Guangdong Province) and Kunming (in Yunnan Province) respectively to co-build NEV production bases. All four bases together will own an annual production capacity of at least 2.3 million NEVs that account for 10% of total annual sales of traditional vehicles worldwide.

The Baoneng Auto Innovation Research Institute, positioned as the group's R&D headquarters in North China, will focus on the R&D of NEV and core EV technologies (battery, electric motor and electric control). It will consist of 8 research centers, including the forward-looking technologies, vehicle development, power system development, technical engineering development, trial production and testing, etc.