The Chinese Automotive Group GAC has announced the establishment of a subsidiary to industrialize its own battery business. A new company called Lvqingg is said to focus primarily on LFP (lithium iron phosphate) batteries and build its own battery factory.
Lvqingg is reported to be 51%, 40% and 9% owned by GAC Aion, GAC Motor and GAC Business, respectively, and has a capital of 10.9 billion yuan ($1.7 billion). GAC Aion as a brand of new energy vehicles will have a majority stake in the company.
According to the announcement, Lvqingg will implement the new GAC LFP battery technology and plans to start construction of a battery cell plant later this year, which is expected to be completed in 2025 with an annual capacity of 26.8 GWh. The location is not yet known, as is usually the case with the GAC, the plant will likely be built in or around Guangzhou.
As recently reported, GAC will also invest 2.16 billion yuan to set up an electric drive manufacturing subsidiary. Thus, the GAC wants to increase its own added value of electric vehicles.