Shanghai (ZXZC)- Shell (China) Limited and FAW Jiefang, the truck manufacturing company of FAW Group, on May 10 signed an agreement to cement their strategic cooperation in five areas, namely, integrated energy solution, new energy commercial vehicle, multidimensional technology innovation, a super concept truck project, as well as overseas business, according to a post on Shell’s WeChat account.

To be specific, the duo will jointly explore integrated energy solutions and discuss opportunities for collaboration in biomass low-carbon fuels, hydrogen, green electricity, comprehensive energy optimization, and carbon trading, and other areas, to reduce or even eliminate carbon emissions for both parties and the whole industry.

Photo credit: Shell

In the field of new energy commercial vehicles, FAW Jiefang and Shell will jointly explore the possibility of building a hydrogen commercial vehicle ecosystem and deploying supporting infrastructures for electric vehicles with swappable batteries.

Based on the experience of previous R&D cooperation, both parties will establish a joint laboratory to conduct theoretical and commercialization research on traditional lubricants and new energy vehicle-related frontier projects.

Through the joint laboratory, both parties will collaborate on the development of a super concept truck, applying both parties' vehicle energy optimization technologies to explore the limits of energy consumption optimization for heavy-duty internal combustion engine-powered trucks and reduce carbon emissions in the transportation sector.

Based on Shell's rich experience in global business development, the two parties will jointly develop lubricants and other products applicable to overseas markets and explore business opportunities in new energy vehicle and other areas.

Shell China and FAW Jiefang have had collaboration for the past eleven years. The recent signing move signifies that the cooperation has been upgraded from the R&D and marketing of lubricating oil products to a comprehensive deepening strategic cooperation. Meanwhile, the scope of cooperation has expanded from traditional business to new energy vehicle field, and from domestic to overseas markets.