Sokon Group’s NEV unit Jinkang inks 5-year pact with CATL for power battery procurement

Shanghai (Gasgoo)- Chongqing Jinkang New Energy Automobile Co.,Ltd. (Jinkang), whose majority shareholder is Chongqing Sokon Industry Group Stock Co.,Ltd. (Sokon Group), struck a deal on Sept. 9 to purchase 10GWh power batteries per year from CATL, according to Sokon Group’s announcement.

Under the agreement, from 2022 to 2026, the buyer (Jinkang) should make a request to the seller (CATL) at least six months in advance based on its own decision, and both parties should jointly determine the transaction volume of power batteries for the next year by signing an ancillary agreement. If the ancillary agreement was not signed, the duo will still execute the contract based on the 10GWh of annual trading volume.

Sokon Group said signing the agreement is conducive to forming a long-run strategic partnership with CATL and guaranteeing a long-run stable supply of power batteries, and is of positive significance to building high-end intelligent electric vehicles.

CATL said in a statement that inking the pact will help it develop a long-term strategic tie-up with Jinkang, and indicates that its product quality and manufacturing ability are recognized by the buyer.

SERES SF5 Huawei Smart Selection; photo credit: SERES

As the new energy vehicle (NEV) arm of Sokon Group, Jinkang is striving to build upscale intelligent vehicles and perfect relevant deployment of supply chain. The SERES SF5 Huawei Smart Selection, the first SERES-branded NEV model armed with Huawei’s smart car technologies, hit the market at the Auto Shanghai 2021, and has gone into the phase of scale delivery.

Sokon Group sold 3,565 NEVs in August, representing a 145.69% hike year on year and an 11.79% growth month on month, according to the company's latest monthly sales results. Its NEV sales amounted to 21,736 units for the first eight months, surging 116.47% from a year earlier.