Farasis Energy, Mercedes-Benz sign supplementary deal to deepen long-term supply tie-up
Shanghai (Gasgoo)- Chinese lithium battery manufacturer Farasis Energy (Ganzhou) Co.,Ltd. (“Farasis Energy” or “the company”) and its wholly-owned subsidiary Farasis Energy (Zhenjiang) Co.,Ltd. (“Farasis Zhenjiang”) intend to sign with their major auto client Mercedes-Benz an agreement supplementing to a long-term battery supply deal, the company announced on Dec. 16.
Per the supplementary agreement, the German auto giant will make an advanced payment of 1.05 billion yuan ($164.864 million) to Farasis Zhenjiang.
Mercedes-Benz EQB SUV equipped with Farasis Energy's ternary-lithium battery
To guarantee a smooth deal implementation, Farasis Zhenjiang will strike a floating mortgage pact with Mercedes-Benz AG to mortgage specified assets to the latter. The pledged assets include the raw materials, intermediate goods, and finished products Farasis Zhenjiang purchase with the aforesaid advance payment to meet Mercedes-Benz's demands of car production and deliveries.
Signing the supplementary deal and the floating mortgage agreement will help Farasis Energy replenish its cash reserve, which will be used to safeguard a stable operation of the supply chain dedicated to the products offered to Mercedes-Benz and lower the battery production cost.
Founded in Dec. 18, 2009, Farasis Energy is permitted to research, develop and manufacture lithium ion batteries, battery module management systems, and EV charging system, etc.
Aside from Mercedes-Benz, the company also supplies batteries to automakers like GAC AION, FAW Group, Geely Auto, Great Wall Motor, and GAC Mitsubishi.
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