China's Evergrande Group said it had agreed to establish a joint venture with Germany's Hofer Powertrain to develop and manufacture electrical systems for electric vehicle powertrains, according to local reports in China.
According to the agreement, Evergrande Health Industry Group, a Hong Kong-listed subsidiary of Evergrande Group, will hold 67% of the shares in the new joint venture with Hofer Powertrain holding the remaining 33% of the equity.
Evergrande Health said it planned to establish an advanced R&D and production base in China with the help of Hofer Powertrain's technology and its research, development and manufacturing team. The new venture would initially focus on developing and producing integrated core technologies for electric vehicle powertrains in China.
The company said its strategic alliance with Hofer Powertrain would provide it with access to world leading integrated electric powertrain systems technology, giving it a powerful competitive advantage in China's new energy vehicle sector.
The report suggested the two companies had also agreed to establish a joint venture in Germany to help fulfill growing demand for electrified powertrains in Europe.
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Evergrande Health has been expanding aggressively in the electric vehicle supply chain sector this year with the acquisition in May of a leading UK developer of in-wheel motor technology, Protean Electric.
This transaction was carried out through its Swedish subsidiary National Electric Vehicle Sweden (NEVS) which it acquired in January 2019.
Also in January, Evergrande Group's wholly-owned subsidiary, Evergrande New Energy Power Technology (Shenzhen) Company, acquired a 58% stake in Shanghai CENAT New Energy Company, a leading Chinese EV battery technology company.
The group this year also acquired a EUR150m stake in German sportscar manufacturer Koenigsegg and a 70% slice of TeT Drive Technology Company, a Netherlands-based developer of in-wheel motor technologies for commercial vehicles.