(Yicai) Dec. 26 -- Chinese carmaker Changan Automobile and Chinese battery materials supplier Ganfeng Lithium have joined hands to co-develop solid-state batteries.

The pair signed a memorandum of understanding on Dec. 22 to set up a 50:50 joint venture that will promote the research, development, and production of solid-state batteries, and explore cooperation on mining resources, lithium salt deep processing, battery materials, and battery manufacturing and recycling, Chongqing-based Changan Auto announced yesterday.

Models under Changan Auto’s Avatr, Deepal, and Nevo electric vehicle brands will likely be used the products from the JV, an analyst said.

The MoU will advance Changan Auto’s Project Shangri-La, as well as the company’s battery brand Jin Zhong Zhao, Chairman Zhu Huarong said. Changan Auto and Ganfeng will give full play to their advantages to promote in-depth cooperation in the upstream and downstream reaches of the supply chain, Zhu added.

Changan Auto released Project Shangri-La in 2017 to transform itself into a new energy vehicle maker. It then launched Avatr, Deepal, and Nevo, with models including battery EVs, plug-in hybrid cars, range extended EVs, and hydrogen-fueled vehicles.

In June, Changan Auto teamed up with its NEV unit Chongqing Changan New Energy Vehicles Technology and Chinese battery giant Contemporary Amperex Technology to set up a battery JV named Times Changan Power Battery. Changan Auto has a 19 percent stake in the JV, Deep Blue Auto 30 percent, and CATL the remaining 51 percent.

Times Changan Power Battery’s first battery cell rolled off the production line in November. The JV is expected to launch eight self-developed battery cells by 2030.

Editor: Futura Costaglione