CATL, FAW Jiefang build joint venture for new energy commercial vehicle sales, services

Shanghai (Gasgoo)- On August 18, CATL and FAW Jiefang, the truck manufacturing company of FAW Group, signed a strategic cooperation framework agreement to build a joint venture dedicated to new energy commercial vehicle ("CV") sales and services, the power battery giant announced via its WeChat account.

While signing the agreement, both parties also celebrated the inauguration of the joint venture, which is named Jiefang CATL New Energy Technology Co., Ltd. ("Jiefang CATL").

Photo credit: CATL

Located in Zhengding county, Shijiazhuang city, the capital of Hebei province, Jiefang CATL will operate such businesses as new energy CV sales, vehicle-battery separating consumption, vehicle leasing service, and transaction of green power, carbon credits, and pre-owned cars, aiming to form a mature ecosystem of new energy trucks.

CATL and FAW Jiefang will pour a total of 500 million yuan ($73.448 million) in the deployment of new energy vehicle after-market operations, offering users three types of services, namely battery swap, vehicle leasing and transport capacity supply, as well as recycling of used cars and batteries, said Hu Hanjie, chairman of FAW Jiefang.

The collaboration with FAW Jiefang signifies CATL's resolution to deeply explore the new energy CV market. Prior to the latest move, CATL's batteries were mainly used in passenger vehicles ("PVs"). It has built joint ventures with a number of Chinese main automobile groups, including FAW Group, Dongfeng Motor, SAIC Motor, and GAC Motor, to jointly conduct R&D, production, and sales of PV-used power batteries.