Chinese electric vehicle (EV) battery manufacturer Contemporary Amperex Technology Company Ltd (CATL) this week signed a preliminary agreement with Huawei Terminal Company Ltd to collaborate in “building global high-end car brands”, according to local reports.

According to the agreement, CATL would support Huawei’s plans to produce smart connected EVS by developing and supplying high-power automotive batteries. The two companies also plan to jointly explore opportunities for battery replacement/swapping services for transport networks such as buses, logistics vehicles, heavy trucks and even electric ships.

The world’s largest EV battery manufacturer, based in Ningde in Fujian Province, said in a statement “the move also marked both parties’ further investment in intelligent network EV technologies and efforts in jointly building global high-end automobile brands”.

The two companies recently partnered with Changan Automobile Group in a newly-established EV manufacturing company called Avatr Technology. CATL this week also signed a collaboration agreement with Chery Holding for the joint development of EVs and also acquired a minority stake in the local automaker, according to local reports.