- CATL and FAW Jiefang signed a deal to collaborate on product development and business model innovation.
- The two will work together to promote the accelerated development and adoption of commercial vehicle battery technology to fuel the electrification of the commercial vehicle transportation industry.
Chinese power battery giant CATL (SHE: 300750) has signed a deal with FAW Jiefang, the truck making subsidiary of China's FAW Group, to promote the electrification of commercial vehicles.
The companies signed the deal in Ningde, Fujian province, where CATL is headquartered, and the signing was witnessed by Robin Zeng, chairman and CEO of the battery maker, and Li Sheng, chairman of FAW Jiefang, according to an announcement today.
The two companies plan to collaborate on various aspects of new energy commercial vehicles, including product development and business model innovation, according to the announcement.
The companies' joint venture, JFCT, which was established in September 2023, will help both shareholders realize growth in new energy commercial vehicle sales, the announcement said.
FAW Jiefang, listed in May 2020 on the Shenzhen Stock Exchange, is a 71-year-old commercial vehicle manufacturer.
It currently has seven product lines and is accelerating its layout in areas including new energy and smart connectivity, and is committed to becoming China's No. 1 provider of green and intelligent transportation solutions, CATL's announcement noted.
The green transformation of the commercial vehicle transportation industry, which consumes a lot of energy, is imminent under the carbon peak and carbon neutral targets, the announcement said.
Between January and November 2024, sales of new energy commercial vehicles in China reached 462,000 units, up 31.1 percent year-on-year, according to the announcement.
In the commercial vehicle sector, CATL launched a commercial vehicle battery brand, Tectrans, on July 4, 2024, as well as two Tectrans L-series commercial vehicle batteries.
On November 26, the battery maker further rolled out the Tectrans series of batteries for heavy-duty commercial vehicles.
CATL will next work with FAW Jiefang to drive the accelerated development and adoption of commercial vehicle battery technology to help electrify the commercial vehicle transportation industry, it said.
Global EV battery market share in Jan-Nov 2024: CATL 36.8%, BYD 17.1%
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