Shanghai (ZXZC)- China-based power battery provider Contemporary Amperex Technology Limited (CATL) announced on April 25 that it has signed a contract with the state-owned carmaker FAW Group to jointly set up a company focusing on production and sales of power batteries. 

The joint venture, dubbed CATL-FAW Power Battery Co.,Ltd (CATL-FAW), has been registered at the end of January with a registered capital of RMB2 billion, according to tianyancha.com, a Chinese data search platform. CATL and FAW Group hold 51% and 49% stake in CATL-FAW with respective contribution of RMB1.02 billion and RMB980 million.

In accordance with the newly-signed agreement, the joint venture plans to start a power battery manufacturing program in Xiapu County, Ningde, Fujian. Its business scope covers the development, production and sales of lithium ion battery, power battery, energy storage battery with ultra-large capacity and battery system as well as relevant after-sale services and technology consultation.

CATL and FAW Group forged a strategic partnership as early as September 30, 2016. Last August, both parties involved in the startup BYTON's series B round financing.

Aside from FAW Group, CATL also agreed cooperation agreements with other automakers like SAIC Motor, Dongfeng Motor, GAC Group, Geely and Jiangling Motors, etc., making it the China-based power battery maker who has most joint ventures with OEMs.

CATL released on April 25 its official annual report for 2018, saying its full-year revenue surged 48.08% year on year to RMB29.611 billion, while the net profit attributable to shareholders of the listed company shrank 12.66% from the previous year to RMB3.387 billion.