Shanghai (ZXZC)- Chinese new energy vehicle startup XPeng recently founded a battery subsidiary, which is regarded as part of efforts to start its battery self-supply deployment.

According to the corporate information platform Tianyancha, the new company, dubbed Guangzhou Pengbo Automobile Technology Co., Ltd. ("Pengbo"), was incorporated on Nov. 16 with a registered capital of 5 billion yuan ($699.379 million). Xia Heng, one of XPeng’s co-founders, serves as its legal representative.

XPeng G9; photo credit: XPeng

Pengbo features a line of businesses including manufacturing of batteries and auto parts, engineering and technology R&D, and testing development.

The newborn subsidiary is entirely held by Guangzhou Pengyi Automobile Technology Co., Ltd. ("Pengyi"). With a registered capital of 5 billion yuan as well, Pengyi was incorporated on Oct. 26 as a wholly-owned subsidiary of XPeng Power Battery (Hong Kong) Limited.

XPeng has teamed up with several battery suppliers, including CALB, CATL, and EVE Energy. It also invested in Sunwoda Electric Vehicle Battery Co., Ltd. ("Sunwoda EVB") through its affiliated company, Sky TOP LLC.

Notably, another major Chinese NEV startup, NIO, has also built its own battery technology company. Named NIO Battery Technology (Anhui) Co., Ltd., the new subsidiary was incorporated on Oct. 21 with a registered capital of 2 billion yuan ($279.752 million). It is wholly-owned by NIO Holding Ltd., the legal entity of NIO China.