Geely injects RMB 50 million to set up Wuhan-based new energy technology company

Shanghai (Gasgoo)- Geely Group (New Biz) has contributed RMB 50 million to set up a new energy technology company in Wuhan, Hubei province through its subsidiary, according to local media. 

Xu Zhihao, CEO of Geely Group (New Biz) will serve as chairman for the new unit. Geely Group revealed that the new company, dubbed Hubei Geely Hengyuan New Energy Technology, is built to make new energy electric car batteries. However, the group currently has no plan for building new energy complete cars in Hubei province.

Geely has been expanding its layouts in power battery area. According to the reports earlier this month, Geely's new power battery base has settled in Jingzhou, Hubei province. Involving a total investment of RMB 8 billion, the new base might be put into operation in 2020, equipped with such facilities as production line and R&D center of batteries and battery modules, office building as well as logistics distribution center. 

Over the past three years, Geely has plowed a huge amount of money in a total of 6 NEV manufacturing programs in Zhejiang, Sichuan and Shaanxi provinces. 

Apart from the expansion in NEV bases, Geely is also cultivating its own power battery businesses. In April, 2017, Geely and LG Chem reached an agreement under which Geely wholly acquired the manufacturing facilities in the South Korean company's Nanjing plant and obtained the legal right to use the seller's manufacturing technologies. In addition, both parties agreed future cooperation that allowed LG Chem to help Geely Auto upgrade its battery technologies.