Shanghai (ZXZC)- Chinese EV startup Xpeng Motors said it signed a deal with five banks for a credit line worth 12.8 billion yuan ($1.98 billion). Under the new strategic partnership, all parties will make joint efforts to boost the sustainable cooperation between banks and enterprises. 

Xpeng Motors signing agreements with five banks; photo credit: Xpeng Motors

The banks involved in the collaboration include the Guangdong branches of Agricultural Bank of China, Bank of China and China Construction Bank, the Guangzhou branch of China Citic Bank, and Guangzhou Rural Commercial Bank. They granted the credit extension to help Xpeng Motor build its business operation, production, sale and service systems.

He Xiaopeng, founder of Xpeng Motors, said the newly-formed partnership is of much significance to a further improvement in the cash utilization efficiency and the cost management.

The agreement came after the company completed its first public follow-on offering in December 2020, raising approximately $2.5 billion.

Xpeng Motors achieved quite a few milestones last year. In November 2020, the company’s second manufacturing base broke ground in Guangzhou, make it the first Chinese EV startup with two self-owned plants.

In December 2020, the startup delivered the first batch of 100 G3 smart SUVs to customers in Norway, representing a milestone for its international business.

Xpeng Motors delivered a total of 27,041 vehicles through 2020, a year-on-year hike of 112%. Cumulative P7 deliveries for the year reached 15,062 with mass delivery beginning at the end of June.

The company's third production model, a new smart EV sedan, is expected for launch and customer delivery in 2021.