(Yicai) March 11 -- Shares of BAIC BluePark New Energy Technology jumped after the Chinese new energy vehicle firm said it plans to establish a battery joint venture with Chinese power battery behemoth Contemporary Amperex Technology and Xiaomi Automobile.

BAIC BluePark [SHA: 600733] was trading up 8 percent at CNY6.60 (92 US cents) as of 10.25 a.m. in Shanghai today.

With a registered capital of CNY1 billion (USD140 million), the JV will develop, produce, and sell power batteries and energy storage batteries, public information shows. It will also invest in the construction of a smart battery cell plant in Beijing, the new energy vehicle brand under Chinese traditional carmaker BAIC Group announced on March 9.

CATL will be the JV’s major shareholder as with a contribution of CNY510 million (USD70.9 million), it will obtain a 51 percent stake, while an affiliate company of BAIC BluePark will invest CNY390 million for a 39 percent stake, the firm added. Xiaomi Auto and electricity generation service provider Beijing Energy Holding will each invest CNY50 million (USD7 million) for a 5 percent.

The establishment of the JV will help to ensure a stable battery supply and the priority of obtaining new battery products and technologies, BAIC BluePark noted.

In January, the Beijing Municipal Commission of Development and Reform said that CATL planned to kick off the construction of its new plant in the Chinese capital city this year. But the battery giant never responded to the news.

Editor: Futura Costaglione