CATL, BAIC, And Xiaomi Auto Create A Smart Battery Factory Joint Business In China

Photo illustration. (Doc. Carnewschina)

JAKARTA - China's largest electric vehicle battery supplier, CATL, is partnering with Xiaomi Auto and BAIC to build a smart battery cell factory.

Citing the Carnewschina page, Wednesday, March 13, this intelligent battery cell manufacturing plant was built under the auspices of Beijing's New Energy Technology Co., Ltd.

Later, the proposed joint venture business scope will include the development, production, and sale of lithium-ion batteries, electric batteries, and energy storage batteries, as well as providing full-sale and related technical consultation services.

BAIC announced the joint venture plan on March 11, 2024. The Chinese automaker will set up a platform company with BAIC Investment, Beijing Hainachuan. Furthermore, the platform company BAIC will act as a management and investment entity from Beijing Era New Energy Technology Co., Ltd.

If in more detail, the total joint venture reached 1 billion yuan with BAIC contributing 390 million yuan (39 percent), CATL 510 million yuan (51 percent) and Xiaomi Auto contributing 50 million yuan or (5 percent) overall.

By establishing this joint venture, BAIC said it was very useful to ensure the company's stable supply of electric batteries, promoting the implementation of new electric battery product and technology priorities in company-complete vehicle products, increasing the competitiveness of the company's product market in the long term.

As is known, BAIC has made significant investments in the new energy vehicle market in recent years, but the company is currently experiencing losses. The company stated that the competition for the new energy vehicle market is getting tighter.

To continue to increase its competitiveness, the company aims to actively explore the market, sharpen brand images, and increase operational efficiency, one of which is in this way.