Chinese battery giant CATL has formed a new joint venture with electric vehicle startup Xiaomi Auto and state-owned automaker BAIC to develop an intelligent battery cell factory in China.
According to Car News China, the three major Chinese companies will form the “Beijing Era New Energy Technology” joint venture to boost electric vehicle battery production.
About the joint venture
BAIC announced plans for the new battery joint venture on March 11, 2024. It will build a platform company with BAIC Investment named Beijing Hainachuan, which will act as the joint venture’s management and investment entity.
Beijing Era New Energy Technology has a total capital of $138 million. Beijing Hainachuan committed to contribute $54 million, representing 39% of the JV’s capital.
CATL is the major stakeholder of the JV, with a $71 million contribution, or 51% of the capital. Meanwhile, Xiaomi Auto is bringing $6.9 million to the table, which equates to 5% of the capital.
Project development
CATL aims to start the development of its new smart battery cell plant in the capital city this year, as per the Beijing Municipal Commission of Development and Reform’s statement in January 2024.
CATL has not confirmed this news about its plans to break ground on the project site in 2024. The joint venture has also not yet disclosed the plant’s production capacity and the type of cells it plans to produce.
It will become the second battery factory of CATL in Beijing, with plans for a new plant announced in early 2024.
Main purpose
Beijing Era New Energy Technology aims to build a new smart battery cell plant in Beijing to develop, produce, and sell power and energy storage batteries. This new joint venture will also offer future customers after-sales and technical consulting services.
This major initiative will help the founding companies and future customers build and establish a reliable battery supply chain. Xiaomi has already announced plans to use the batteries from the upcoming factory in its inaugural EV, SU7.
