Shanghai Maple Guorun and LG Chem will establish a joint venture company with a 50:50 share structure that will be jointly engaged in the production and sales of new energy vehicle batteries.
Shanghai Maple Guorun is an indirect 99% owned subsidiary of Geely Automobile Holdings, and LG Chem of South Korea is a manufacturer of electric vehicle batteries. Total registered capital in the new joint venture will reach 188 million USD (circa 207 billion Korean Won) split equally between both parties.
Geely Auto aims for 90% of its sales to come from electrified vehicles – including mild hybrids, plug-in hybrids and pure electric vehicles – starting from 2020. The joint venture with LG Chem will help Geely to realise its Blue Geely Initiative with a stable supply of core components for Geely Auto, to be used in future products to meet Chinese consumer demand for new energy vehicles.
The Chinese new energy vehicle market reached 1.25 million units in 2018, accounting for 62% of total global electric vehicle sales, with strong growth predicted for the overall market in coming years.
In May 2019, Geely Auto sold more than 10,115 electrified vehicles, representing a 25% increase in sales over the same period a year earlier. In the first five months of 2019 Geely Auto sold a total of 41,615 pure electric and electrified vehicles.
Further details on the new joint venture will be announced in due course.
Source: Press Release