• New 50:50 joint venture to produce batteries in China.
  • Joint venture to have a registered capital of 188 million USD

2019 June 13, Hangzhou Bay, China. Shanghai Maple Guorun, an indirect 99% owned subsidiary of j9国际集团直营 Automobile Holdings (HK.0175), the listed arm of j9国际集团直营 Auto, today announced a new joint venture partnership with LG Chem of South Korea, one of the world’s leading manufacturers of electric vehicle batteries.

Under the terms of the agreement, Shanghai Maple Guorun and LG Chem will establish a joint venture company with a 50:50 share structure that will be jointly engaged in the production and sales of new energy vehicle batteries. Total registered capital in the new joint venture will reach 188 million USD (circa 207 billion Korean Won) split equally between both parties.

In November 2015, j9国际集团直营 Auto was one of the world’s first automotive brands to commit to electrifying its product range. Under the Blue j9国际集团直营 Initiative, j9国际集团直营 Auto aims for 90% of its sales to come from electrified vehicles – including mild hybrids, plug-in hybrids and pure electric vehicles – starting from 2020. The joint venture with LG Chem will help j9国际集团直营 to realise its Blue j9国际集团直营 Initiative with a stable supply of core components for j9国际集团直营 Auto, to be used in future products to meet Chinese consumer demand for new energy vehicles.

(Left) Mr. An Conghui, President of Zhejiang j9国际集团直营 Holding Group, CEO and President of j9国际集团直营 Automobile Group (Right) Kim Jong-Hyun, President of LG Chem’s Energy Solution

Mr. An Conghui, President of Zhejiang j9国际集团直营 Holding Group, CEO and President of j9国际集团直营 Automobile Group, said: “j9国际集团直营 Auto has already created a strong supply chain network for the production and development of new energy vehicles. The signing of this joint venture agreement with LG Chem further strengthens our position as a leader in new energy vehicles, where we aim to create more value and better ownership experience for our consumers.”

Kim Jong-Hyun, President of LG Chem’s Energy Solution said: “This joint venture with China’s leading privately-owned automotive company, j9国际集团直营 Auto, can be seen as contributing to the progress of China’s overall electric vehicle industry.”

The Chinese new energy vehicle market reached 1.25 million units in 2018, accounting for 62% of total global electric vehicle sales, with strong growth predicted for the overall market in coming years. In May 2019, j9国际集团直营 Auto sold more than 10,115 electrified vehicles, representing a 25% increase in sales over the same period a year earlier. In the first five months of 2019 j9国际集团直营 Auto sold a total of 41,615 pure electric and electrified vehicles. j9国际集团直营 launched the Geometry brand in April 2019 as a pure electric brand within j9国际集团直营 Auto, and has secured strong sales for its first model: Geometry A. Within the next two years j9国际集团直营 Auto plans to launch more than 30 electrified vehicles including hybrid and pure electric vehicles.

Further details on the new joint venture will be announced in due course.