CATL to participate in HOZON Auto’s D2 round of financing

Shanghai (Gasgoo)- HOZON Auto, the Chinese startup owning the EV brand NETA, on Nov. 8 inked an agreement with CATL to carry out a strategic cooperation on technology R&D and supply chain support, HOZON Auto announced via its WeChat account.

Under the agreement, the Ningde-based battery giant will take part in HOZON Auto's D2 round of financing.

HOZON Auto, CATL signing agreement; photo credit: HOZON Auto

The D2 round closely came after the completion of the D1 round financing. At the end of October, HOZON Auto announced it had banked 4 billion yuan ($625.665 million) in the D1 funding, where the leading investor 360 Security poured 2 billion yuan ($312.832 million).

Before the D1 round, 360 Security also participated in HOZON Auto's Series D financing through its wholly-owned subsidiary. The Chinese Internet security giant has become the second largest shareholder of the EV startup by indirectly holding 16.594% equity interest.

The cooperation between HOZON Auto and CATL can date back to March 2020. According to the agreement both parties signed then, CATL would provide HOZON Auto with its power battery solution, namely, equipping five models based on the automaker's two car platforms with the CTP (cell-to-pack) technology. 

Aside from the smooth financing progress, HOZON Auto also posted robust growth in sales. In October, the company delivered 8,107 new vehicles, representing a 294% hike from a year ago and reaching another record high.

HOZON Auto plans to launch its fourth production model, the NETA S, next year. For this yet-to-be-released all-electric sedan model, the EV manufacturer has formed cooperation with many technology companies, such as Huawei, 360 Security, Horizon Robotics, and SenseTime.