Shanghai (ZXZC)- Geely Technology Group and Farasis Energy, a Chinese developer and supplier of lithium-ion battery technologies, struck a deal on May 17 to build a joint venture dedicated to battery-related businesses, according to Farasis Energy.

Geely Technology Group, Farasis Energy signing agreement; photo credit: Farasis Energy

Under the agreement, the new joint venture will involve a registered capital of 1 billion yuan ($155.577 million), 65% of which are subscribed by Geely Technology.

The business scope of the joint venture will extends to cover the R&D, the manufacturing, and the sales of electric vehicle (EV)-related energy storage and management systems, like the lithium-ion battery and module system, the battery module management system, and EV charging system, and other products related to lithium-ion batteries. Besides, the joint venture will also work on researching, developing, producing, and selling cathode & anode materials of lithium-ion batteries, electrolyte, and membrane separators.

Before Farasis Energy acquiring the entire equity interest in the joint venture, Geely Technology will play a major role in the joint venture’s daily operations and management, while Farasis Energy will lead such businesses as technology R&D and market expansion. Moreover, Geely Technology will assist the battery supplier with the validation and the application of batteries in the vehicles of Geely Technology and Geely Commercial Vehicles Group.

The two companies formed a strategic partnership in December 2020, attempting to set up a joint venture for manufacturing power batteries. The combined capacity of the joint venture and Farasis Energy is expected to reach 120 GWh, of which at least 20GWh will be ready this year.

The joint venture newly announced is part of the strategic cooperation both parties agreed last year, according to a person briefed on the matter.