Geely Automobile: LG Chem Joint production of EV batteries: China’s largest car manufacturer
Shanghai
June 20, 2019
Geely Automobile: The largest automaker in China
On June 12, the subsidiary Shanghai Hua Putuo Jun announced that it will set up a joint venture with LG Chemical of Korea, with a 50/50 cash investment.
Joint venture is capitalized at $ 188 million
Development and manufacture of EV batteries (LIB)
Construction of a new plant at the end of 2019
It plans to establish an annual production capacity of 10 million kilowatt hours by the end of 2021.
Relationship between Geely Automobile and LG Chem:
The relationship goes back to April 2017.
Geely Automobile has acquired LG Chemical’s on-board battery plant (Nanjing, Jiangsu Province).
Since then, the partnership between the two companies has been further strengthened.
Geely Motor umbrella: Volvo Cars
In May 2019, Volvo Cars announced that it had signed a LIB procurement contract (equivalent to billions of dollars) over the next 10 years from LG Chem.
In September 2014, Geely Automobile acquired Shandong Yusen Xinxuan, an automotive battery manufacturer.
In April 2016, Geely Automobile started construction of a production base (including Jinhua City, Zhejiang Province, including research and development).
At the end of 2018, it announced that it would establish a joint venture with Ninde era new technology technology (CATL), a major automotive battery manufacturer.
It will complete its production base in Hubei Province in 2020 with a total investment of 8 billion yuan (about 128 billion yen 1 yuan = about 16 yen).
Geely Automobile NEV sales (Jan-May): 4.6 times the previous year
The company’s car sales (Jan-May) decreased by 12% from the previous year to 560,000.
It only reached 37% of the annual target number (1.51 million).
On the other hand, sales volume of NEVs, mainly EVs, has soared 4.6 times (41,615) compared to the previous year.
-JETRO
https://www.jetro.go.jp/biznews/2019/06/1a2b0d46cc171731.html