Toyota and its battery supplier/subsidiary, Primearth EV Energy, plan to establish a joint venture with two Chinese companies in the city of Changshu, reveals Hunan Corun New Energy, one of the partners. The new venture, to be approved by the Chinese government, is named CORUN PEVE (CHINA) AUTOMOTIVE BATTERY CO., LTD and devoted to developing, manufacturing, and marketing nickel metal-hydride (NiMH) battery packs for EVs and hybrids.
Toyota and Primearth EV Energy will together own 50% of the joint venture, and Hunan Corun 40%. An investment company local to Changshu, where the venture will be based, is to have a 10% stake.
|Ownership of CORUN PEVE (CHINA) AUTOMOTIVE BATTERY CO., LTD|
|Partners||Form of investment||Amount of investment (in Japanese Yen/JPY)||Shares|
|Hunan Corun New Energy Co., Ltd.||Cash||2,084,000,000||40%|
|Changshu Xinzhongyuan Investment Co., Ltd.||Cash||521,000,000||10%|
|Primearth EV Energy||Cash||2,136,100,000||41%|
|Toyota Motor (China) Investment Co., Ltd.||Cash||260,500,000||5%|
With a registered capital of 5,210,000,000 JPY, CORUN PEVE will receive a total investment of 15,630,000,000 JPY. The announcement from Hunan Corun, made on May 29, did not specify on the production capacity of the Changshu factory or when it will open.
In Changshu, a city in the Jiangsu province and not far from Shanghai, Toyota runs a major auto parts factory as well as R&D center–TMEC (Toyota Motor Engineering & Manufacturing (China) Co., Ltd.).
Hunan Corun New Energy is a Shanghai-listed maker of EV batteries based in Changsha, Hunan.