Shanghai (ZXZC)- China's state-run auto group GAC Group announced on Mar. 22 its board of directors has approved the plan to build an energy subsidiary, as part of efforts to strengthen the building of EV power network and ultimately achieve carbon neutrality.

Photo credit: AION S

Temporarily named GAC Energy Ecosystem Technology Co., Ltd. (“GAC Energy”), the subsidiary will be established to develop a power supply ecosystem that integrates EV charging, battery swapping and energy storage, and an ecosystem for battery recycling, according to GAC Group’s announcement.

Moreover, the yet-to-be-built subsidiary will work on building an efficient smart energy cloud platform, advancing the research of energy storage system technologies, and promoting the development and application of the services, technologies and products related to smart EV charging and battery swapping.

GAC Group also noted the project would involve a total investment of 4.96 billion yuan ($633.75 million), 1 billion yuan ($127.772 million) of which would be poured as the subsidiay's registered capital. GAC Group and GAC AION would subscribe for 550 million yuan ($70.275 million) and 450 million yuan ($57.5 million) respectively.