Sunwoda, Wuling Industrial attempt to build JV for NEV power battery system

Shanghai (Gasgoo)- Liuzhou Wuling Motors Industrial Company Limited (Wuling Industrial) has entered into a memorandum of understanding (MoU) with Chinese battery supplier Sunwoda Electric Vehicle Battery Co.,Ltd. (Sunwoda EV Battery) for a possible investment and establishment of a joint venture dedicated to manufacturing power battery system products for new energy vehicles (NEVs), according to an announcement issued by Wuling Motors Holdings Limited, a parent company of Wuling Industrial.

Photo credit: Sunwoda

Under the MoU, both parties have initially agreed that the equity ratio of the joint venture is 50%:50%. The joint venture's main businesses include the development, manufacturing, supply, and sale of NEV power batteries and relevant components for the consumers in Liuzhou and the nearby regions. The battery pack will be the main focus in the early stage. Based on further negotiation between the two companies and the demands rising from business development, the range of products could be extended to battery modules and BMS, etc., and the service locations could be further expanded.

Wuling Motors Holdings Limited said it regards power batteries as the core components of new energy vehicles (NEVs). Thus, entering the MoU with Sunwoda EV Battery will help the auto group improve its technology and market competitiveness, so as to contribute to the long-term development of new energy vehicles.

Sunwoda EV Battery engages in the research, manufacturing, and sales of power battery cells, modules, BMS, and packs, with its sales and R&D centers located in Shenzhen, and two main production bases in Huizhou and Nanjing. The company recorded an installed battery capacity of 1.36GWh for the first ten months of 2021, ranking 10th among power battery makers in China, according to the China Automotive Power Battery Industry Innovation Alliance.