CABRI plans to increase investment to promote development of lithium battery technology

Shanghai (Gasgoo)- Thanks to the market expansion and the policy support, many companies, including traditional carmakers and Internet companies, have entered into the segment. Compared with captital, technology seems to have more limit on the development of new energy vehicle.

In order to promote the development of lithium battery technology, China Automotive Battery Research Institute (CABRI), known as the national team for vehicle power battery, plans to increase another capital sum of no more than RMB 540 million for scientific research, investment and construction, etc.

CABRI, a coordination and innovation platform for the industry and technology, was jointly established, under the leading initiation of China Association of Automobile Manufacturers (CAAM) and General Research Institute for Nonferrous Metals (GRINM), by domestic scientific research institutions, power battery manufacturers and automobile OEMs. Its shareholders include FAW, Dongfeng, Chang’an, SAIC, Brilliance, GAC, CATL, Tianjin Lishen.

The institute’s registered capital is RMB 890 million and after the new round of fund-raising, its registered capital will be increased to RMB 1.43 billion. The original investors have a shareholding of 69.53 percent while the new investors will hold the rest shares.

The financing will face no more than 6 investors and the respective investment of each investor will be between RMB 27.66 million and RMB 373.41 million. Shareholders should buy shares in cash.

As to the qualifications of the potential investors, the institute made the following requirements. First, companies, which focus on power battery material, power battery manufacturing, power battery system control and power battery application and have higher popularity and industry influence, will be preferred. Second, the main businesses of the investors and the institute are expected to have complementary advantages and realize strategic synergy. Finally, companies, which have cooperation experience in power battery with the institute, will be preferred.