Shanghai (ZXZC)- Chongqing Changan Automobile Co., Ltd. (“Changan Automobile”) announced on Feb. 17 it intends to build a battery joint venture with Chongqing Changan New Energy Automobile Co., Ltd. (“Changan New Energy”) and CATL.

The new joint venture will involve a registered capital of 1.5 billion yuan ($218.376 million), which will be 19%, 30%, and 51% contributed by Changan Automobile, Changan New Energy, and CATL, respectively.

Photo credit: Changan Auto

The Chongqing-based auto group noted the said proposal still requires the approval from China’s Anti-monopoly Bureau.

The latest announcement came after Changan Automobile and CATL inked an agreement in Dec. last year to set up a joint venture.

Under the agreement signed then, the joint venture would help the two parties to complement their respective advantages, synergize, and create value throughout the relationship. CATL would give full play to its comprehensive innovation ability and core advantages in power battery R&D, production, manufacturing, after-market service, etc., to help Changan Automobile reinforce its product competitiveness.

Changan Automobile also disclosed last Friday the progress of its acquisition of the equity in Changan New Energy.

As of now, Changan Automobile has paid all the share transfer prices according to the relevant provisions of the equity transfer agreement, completed the equity delivery procedures, and Changan New Energy has also completed the industrial and commercial change registration. Currently, Changan Automobile’s shareholding in Changan New Energy has increased from 40.66% to 51%. Starting from February 2023, Changan New Energy will be included in the company's consolidated financial statements.