Shanghai (ZXZC)- Chinese new energy vehicle startup XPeng recently set up a subsidiary working on power battery-related businesses, indicating the company's intention to build up its capability in in-house development of batteries.

According to the corporate information inquiry platform Tianyancha, the aforesaid subsidiary, named Guangzhou Pengyue Power Battery Co., Ltd. ("Pengyue Power Battery"), was incorporated on Nov. 21 with a registered capital of 5 billion yuan ($715.953 million). It features a business scope that covers manufacturing of batteries, auto parts, and intelligent in-car devices, as well as production of battery components.

Photo credit: XPeng

The shareholding structure shows that Pengyue Power Battery is wholly-owned by Guangzhou Pengbo Automobile Technology Co., Ltd. ("Pengbo Auto Tech"), which was incorporated on Nov. 16, 2022, and has a line of businesses including manufacturing of auto parts, batteries, electric motors, and battery components.

Notably, Pengbo Auto Tech is 100% held by Guangzhou Pengyi Automobile Technology Co., Ltd. ("Pengyi Auto Tech"), whose sole shareholder is XPeng Power Battery (Hong Kong) Limited.

Several local media outlets reported in late Nov. that XPeng had put the in-house development of batteries onto its agenda, and had appointed Zhong Liang, former senior battery engineer at BMW Group, as its senior director for battery technologies.

Nevertheless, the company afterwards denied the plan, saying Mr. Zhong is working at XPeng in charge of cooperation with battery suppliers, but XPeng has no plan to independently develop batteries.

XPeng's first battery supplier is CATL. It is joining hands with more suppliers, including CALB, EVE Energy, Sunwoda, BAK Power, and SVOLT, to further stabilize battery supplies and keep the battery procurement cost affordable.