(Yicai Global) Dec. 16 -- Chinese electric car battery giant Gotion Hi-Tech will set up a power and energy storage battery joint venture in Thailand with a local state-owned company.

Gotion Hi-Tech unit Gotion Singapore and Nuovo Plus signed a deal to set up the JV with an initial registered capital of THB300 million (USD8.6 million), the Volkswagen Group-backed company said yesterday. Gotion Singapore will hold a 49 percent stake in the project and Nuovo the rest.

The JV will operate a plant to design, develop, and manufacture battery modules, battery packs, and battery management systems for commercial and passenger vehicles and energy storage systems, Gotion Hi-Tech added, without disclosing any further details such as the capacity and location of the factory.

The JV, which is still subject to approval by regulators in China and Thailand, will help Gotion High-Tech tap into the Southeast Asian market and raise brand awareness, the Chinese firm pointed out.

Gotion Singapore will provide the JV with technical and engineering support, while Nuovo will offer administrative services in land acquisitions, plant construction, recruitment, bank financing, customer development, and long-term operations.

Nuovo was founded at the beginning of the year by PTT Public, a state-owned integrated oil and gas and petrochemicals firm, Gotion Hi-Tech said. It is mainly involved in the power and energy storage battery-related business and battery industrial chain investment.

Gotion Hi-Tech’s shares [SHE: 002074] fell 2.6 percent today to close at CNY31.69 (USD4.54) each.

Editor: Martin Kadiev