China-based Xuzhou Construction Machinery Group Co Ltd (XCMG) and Tsingshan Holding Group Co Ltd have agreed to invest CNY 5.5bn ($843bn) in the new energy vehicle (NEV) project located in the city of Xuzhou in eastern China, according to media reports citing a statement by XCMG.
The project will focus on research, development, production, and sales of NEVs, batteries, electric motor control systems, and auto parts, among others.
The company is yet to reveal how much money each of the two parties will invest, or how many vehicles, batteries, or parts it aims to produce.
Phase I of the project will require an investment of CNY2.5bn during which the company is expecting annual sales worth CNY10bn.
Tsingshan is the biggest nickel producer in Indonesia and has invested in the country’s Morowali territory to produce battery-grade nickel chemicals, while XCMG is one of China’s biggest construction machinery manufacturers.
($1 = CNY6.45957)