Shanghai (ZXZC)- On July 17, China's Contemporary Amperex Technology (CATL) announced that considering the long-term strategic partnership between CATL and BMW Brilliance, CATL signed a strategic cooperation agreement with BMW Brilliance and will further deepen cooperation with the joint venture.

According to the agreement, BMW Brilliance plans to purchase construction project of battery production capacity from CATL to procure battery products. The RMB 815 million worth of project will secure the manufacturing and supplying of battery related products for BMW Brilliance and its related parties.

BMW Brilliance will procure specified vehicle-battery products from CATL and CATL will get a RMB 2.8525 billion ($419.29 million) prepayment from the joint venture.

Both parties also reached a deal which endows BMW Brilliance with the right to participate in CATL's future domestic or foreign fundraising plans, under their agreed conditions. The investment in CATL will not top RMB 2.8525 billion ($419.29 million).

The projected expiration date of the strategic agreement shall be 54 months from the effective date.

According to CATL, the battery maker will carry out strategic cooperation with BMW Brilliance steadily by making full use of both parties' advantages in their respective areas. The cooperation will not only help CATL to improve continuous profitability, core competitiveness and revenue performance, but also benefit the company in deepening the cooperation between CATL and world-renowned automakers to promote the battery maker's market position and influence.