Shanghai (ZXZC)- Shandong Geely Sunwoda Power Battery Co.,Ltd. (Geely Sunwoda), a joint venture between Geely Auto and Chinese lithium ion battery maker Sunwoda, was formally founded last week, marking the expansion of Geely's deployment of NEV (new energy vehicle) battery business.

Founded on Sept. 24 and incorporated in Zaozhuang, Shandong province, the joint venture involves a registered capital of 100 million yuan ($15.488 million), according to the business data platform Tianyancha. It is jointly held by Sunwoda Electric Vehicle Battery Co., Ltd. (30%), Geely Auto Group (28.5%), and Jirun Automobile (41.5%), an indirect 99% owned subsidiary of Geely Automobile Holdings Limited.

Business scope of the joint venture covers the sales of batteries, electronics products, and electric motors, the manufacturing of batteries and auto parts, as well as the R&D of auto parts.

Photo credit: Sunwoda

The registrations of Geely Sunwoda came after the three parent companies signed an agreement in late July to build a joint venture engaging in the development, production, and sales of hybrid power battery cells, battery modules, and battery packs.

According to the government of Zaozhuang, Geely-Sunwoda power battery project involves an investment of over 5 billion yuan ($774.378 million) and will mainly manufacture power battery packs for HEVs (hybrid electric vehicles) and vehicles fitted with the 48-volt systems. It can initially produce no less than 600,000 battery packs a year at full capacity. Then the annual capacity will be boosted to more than 800,000 in the next phase.

Geely Auto Group said the joint venture will utilize the strength, resources, and expertise of all parties in the local manufacturing of NEV batteries, so as to ensure a stable battery supply for Geely Auto and its subsidiaries, and help Geely effectively decrease costs.