Ener1, a lithium-ion battery technology company, and Wanxiang Electric Vehicle have signed a joint venture agreement to co-manufacture Li-ion cells and battery packs for the Chinese market.
The new company will harness American technology and Chinese manufacturing capability to produce battery systems for Wanxiang’s several existing light-and heavy-duty automotive and power grid customers for delivery this year.
The new venture, Zhejiang Wanxiang Ener1 Power System will use Wanxiang Electric Vehicle’s existing 553,000sq ft facility in Hangzhou.
The joint enterprise is expected to achieve annual cell manufacturing capacity of 300 million Ampere hours (approximately 40,000 electric vehicle battery packs) annually by 2014.
Wanxiang Electric Vehicle will have a 60% equity stake in the joint venture, and the company will contribute property, plant, equipment, and customer relationships, including State Grid, SAIC Motor, Dongfeng Motor, Guangzhou Auto and Yutong.
As part of its 40% stake, Ener1 will provide intellectual property, engineering, manufacturing and technical expertise.