Date: March 19, 2024. — BAIC, CATL and, Xiaomi have announced plans to establish a joint venture to build a battery cell factory in Beijing. The venture, named Beijing Era New Energy Technology, will start construction this year with an initial capital of 1 billion yuan (approximately 138 million USD). CATL will hold a 51% majority stake, BAIC will have 39%, and Xiaomi Auto will maintain 5%.
The joint venture aims to ensure a stable supply of power batteries and support the industrial development of electric vehicles. The scope of business for the new company includes developing, producing, and selling lithium-ion batteries, power batteries, and energy storage batteries, along with providing related after-sales and technical consulting services.
This collaboration is part of a broader strategy by the companies involved to enhance their competitiveness in the new energy vehicle market. For instance, BAIC has also been working with other partners, such as Hyundai and Mercedes, to develop electric vehicles for the Chinese market.
The new factory is not CATL’s first in Beijing, as they had previously announced plans for another plant earlier this year. Xiaomi’s involvement stands out notably since it expects to use some of the batteries produced for its Xiaomi SU7, an electric vehicle introduced earlier this year.
The companies involved and the electric vehicle industry in China regard this strategic move as significant, as it reflects a concerted effort to advance the development and production of essential components for electric vehicles.
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