CATL, BAIC, Xiaomi to build a joint battery cell facility in Beijing

Chinese firms CATL, Beijing Automotive Group Co. (BAIC) and Xiaomi Auto are joining hands to establish a joint venture named 'Beijing Era New Energy Technology Co. Ltd.' to establish a state-of-the-art, intelligent manufacturing facility for battery cells in Beijing.

According to media reports, the JV is being set up at a capital of about one billion yuan ($138 million), with CATL holding the majority 51 percent stake in the enterprise, followed by BAIC with 39 percent and Xiaomi holding 5 percent stake. 

The joint venture will concentrate on developing and manufacturing lithium-ion batteries for EVs and energy storage applications, along with the required after-sales and technical consulting services.

Construction of the proposed factory is expected to happen later this year, although there is no official word from the partnering companies on a defined timeline or manufacturing capacity of the plant yet. 

 News reports suggest that BAIC Group's BluePark New Energy Technology is establishing a platform company in partnership with BAIC Investment, Beijing Hainachuan to serve as the management and investment agency for the battery JV. BluePark is the manufacturer of Arcfox brand of EVs sold in China.

To ensure a stable supply of power batteries, develop new battery products and technologies in the company's vehicle line-up, and enhance its market competitiveness, BAIC BluePark is said bet big on the new battery JV.

BAIC Group is very active in new energy vehicle market developments in China. Recently in January this year, the company was reported to have chalked out plans to launch a new EV brand in partnership with Hyundai Motor Company, with talks even on to locally-build EVs in the country.

Also, Beijing Benz Automotive (BBAC), the Chinese JV involving Mercedes-Benz and BAIC, is the sole manufacturer of Mercedes-Benz branded electric cars in the country, operating a production line at its plant located in the Shunyi district of Benjing.