On the evening of June 12,Geely Automobile Holdings Co., Ltd. announced that its subsidiary, Shanghai Huapu Guorun Automobile Co., Ltd., entered into a joint venture agreement with LG Chem to establish a joint venture company, which is principally engaged in the production and sale of electric vehicle batteries.

LG Chem, the largest chemical company in Korea, is principally engaged in, among other things, the development, production and sale of electric vehicle batteries.

The registered capital of the joint venture company will be 188 million US dollarsShanghai Huapu Guorun and LG Chem each contributed 50%. The initial period of the joint venture is for a period of 20 years and can be further extended in the form of a shareholder resolution by mutual agreement.

Geely Automobile said that the group began implementing it for five years in November 2015.New Energy Vehicle Strategy "Blue Geely Action"And announced that in 2020, the production and sales of automobiles will reach 2 million, of which 90% are new energy products. This requires a large, stable supply of power batteries.

According to media reports,Geely Automobile acquired LG Chem Nanjing Battery Factory in April 2017Obtained the right to use the latter's production equipment and manufacturing technology intellectual property rights, and transferred to Zhejiang Hengyuan New Energy Technology Co., Ltd. (Geely) to meet the quality standards of LG Chemical. At present, the batteries produced by Zhejiang Hengyuan New Energy have also been matched to the Volvo models.