Shanghai (ZXZC)- Geely Auto Group (Geely Auto) announced on Tuesday the formation of Zeekr Company Limited, a new electric mobility technology and solutions company based in China that aims to meet growing demands for premium electric vehicles (EVs).

According to Geely Auto, Zeekr will be a 51-49% joint venture between Zhejiang Geely Holding Group (Geely Holding) and Geely Auto. Both parties have agreed to plow a total of 2 billion yuan ($307.088 million) in cash into the newborn company.

Li Shufu, chairman of Geely Holding, will serve as chairman of Zeekr, while An Conghui, president and CEO of Geely Auto Group, becomes CEO of the new joint venture. The Chinese name of Zeeker has been confirmed as Ji Ke.

The first Zeekr-branded vehicles are expected for delivery in the fourth quarter of 2021, with production being undertaken by Geely Holding. Over the next five years, Zeekr intends to launch a new EV model per year to market.

Zeekr will develop its own battery technologies, battery management systems and electric motor technologies, and build self-owned EV supply chain support. In addition, by using Geely Holding's leading Sustainable Experience Architecture (SEA), Zeekr's vehicles will be able to offer software upgrades throughout cars' lifetime via OTA (over-the-air) upgrades.

The new joint venture will focus on Chinese market initially whilst explore export chances to meet global demands for upscale EVs.

“Zeekr is part of Geely Holding's accelerating adoption of sustainable transport technology and mobility services under which the Group has adopted an aggressive plan to electrify all of its subsidiary brands in due course,” said Geely Auto.

Prior to Zeekr, Geely Holding has owned Polestar that focuses on premium EVs as well, while there are some differences between them. "Polestar is European electric performance. Zeekr focuses on connectivity, autonomy and electrification for the Chinese market, which is different in its needs, but also applicable globally," a content provider from Geely Holding replied a twitter user.