Foshan Teams With Pihsiang to Form China-Taiwan Electric-Car Ventures
Aug. 20 (Bloomberg New Energy Finance) -- Foshan Electrical and Lighting Co., a Chinese lighting product maker, signed an agreement with Pihsiang Machinery Manufacturing Co. to set up electric-car joint ventures.
Under the letter of intent signed by the two firms, they will jointly invest 100 million yuan ($14.7 million) to produce lithium-iron phosphate for electric-car batteries, with an initial capacity of 2,000 metric tons a year, Foshan Electrical said today in a filing to the Shenzhen Stock Exchange.
They will also jointly contribute 250 million yuan to establish a joint venture company that will manufacture lithium batteries used by electric cars.
Foshan Electrical and Pihsiang will also jointly manufacture electric vehicles and expect to produce 20 units in 2010. The investment of the project wasn’t disclosed.
Guangdong-based Foshan Electrical plans to hold at least a 51 percent stake in each of the three joint ventures with Pihsiang, it said.
Foshan Electrical, whose shares have risen about 27 percent in the last month, said on Aug. 18 that it will set up a joint venture with four Chinese partners to produce lithium iron phosphate. In March, it acquired a 20 percent stake in battery maker Hefei Guoxuan High-tech Power Energy.
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