China's Geely to add $5 billion battery plant in electric vehicle push1 min read . Updated: 15 Mar 2021, 07:30 PM IST
The planned factory comes after Geely announced a flurry of tie-ups in January aimed at turning the automaker into a leading EV contract manufacturer.
Geely said on Monday it would build an electric vehicle battery factory with a planned annual manufacturing capacity of 42 gigawatt hours (GWh) in China's eastern city of Ganzhou, as it expands its EV line-up in the world's biggest car market.
The total investment in the project by Geely's technology arm will be 30 billion yuan ($4.61 billion), according to a separate statement from the local government.
Geely's technology group has previously invested in Ganzhou-based EV battery maker Farasis.
The planned factory comes after Geely announced a flurry of tie-ups in January aimed at turning the automaker into a leading EV contract manufacturer and engineering service provider, as it fights the incursion of EV leader Tesla Inc.
Geely, which owns Volvo Cars and a 9.7% stake in Daimler AG , is competing with Great Wall and Nio Inc .
China's government has heavily promoted new energy vehicles (NEVs) - such as battery-powered, plug-in petrol-electric hybrid and hydrogen fuel cell cars - in response to chronic air pollution, spurring interest from technology companies and investors alike.
China forecasts NEVs will make up 20% of its annual auto sales by 2025 from around 5% in 2020.
This story has been published from a wire agency feed without modifications to the text.