Apple supplier Luxshare plans to form JV with Chery to produce EVs - CnEVPost

Apple supplier Luxshare plans to form JV with Chery to produce EVs

Luxshare's controlling shareholder will buy part of the stakes in Chery Holdings and two other companies for RMB 10 billion.

Apple supplier Luxshare plans to form JV with Chery to produce EVs-CnEVPost

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In addition to Internet companies, Chinese industrial giants appear to be looking to seize the opportunities presented by the fast-growing electric vehicle (EV) industry.

Shenzhen-listed Apple supplier Luxshare Precision made an announcement that it signed a strategic cooperation framework agreement with Chery Group today and plans to form a joint venture with the latter's Chery New Energy to engage in the development and manufacturing of new energy vehicles (NEVs).

The joint venture will provide Luxshare's core automotive components business with cutting-edge R&D design and mass production platforms, which can help it achieve its medium- to long-term goal of becoming a Tier 1 leader in automotive components, the announcement said.

Luxshare's controlling shareholder Luxshare Ltd signed an agreement with Qingdao Wudaokou, an investor in Chery, to buy its 19.88 percent stake in Chery Holdings, 7.87 percent stake in Chery Automobile Co and 6.24 percent stake in Chery New Energy for RMB 10.054 billion.

Prior to the agreement, Qingdao Wudaokou held 46.77 percent of Chery Holdings and was the largest shareholder.

Luxshare was founded in May 2004 and went public in Shenzhen in September 2010.

In 2011, the company entered the Apple industry chain, providing connection cables, internal iPad cables, MacBook power cables, Apple Watch wireless charging bands, MacBook Type-C and iPhone adapters.

Late last year, Nikkei Asia reported that Luxshare was building a massive production facility in eastern China with Apple's support with the goal of breaking the decade-long monopoly on iPhone assembly held by Foxconn and Pegatron.

Luxshare becomes the latest of Apple's suppliers to join the car-making bandwagon after Foxconn, which last year unveiled its first three electric cars, due to hit the market as early as 2022.

Phate Zhang/CnEVPost: Phate is the founder and main author of CnEVPost. He has been reporting since 2009, mainly on macroeconomics and capital markets. Contact via: [email protected]
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