Chinese battery manufacturer Gotion High-Tech and car maker Chery Automobile are teaming up in the field of passenger cars and commercial vehicles to develop the new energy vehicle market, The Paper reported today.

Gotion High-Tech’s subsidiary will supply Chery’s passenger cars, buses, logistics vans, heavy trucks and other vehicles with advanced battery technologies such as Gotion High Tech’s third-generation battery cells, the report said, citing the deal inked by the two parties on Jan. 7.

The two Anhui province-based companies, which have been collaborating since 2012, will also deepen their tie-up on battery platforms, cell consistency, safety, Big Data and other areas

They will also jointly explore new business sectors such as energy storage and electric ships, leverage their respective strengths to expand their footprint in overseas new energy markets, and strengthen cooperation in ESG and low-carbon emission reduction to boost their reputation and brand awareness.

In 2022, Gotion High-Tech was Chery’s biggest battery supplier, accounting for 43.4 percent. The Hefei-based company had the fifth biggest installed capacity of batteries in China from January to November last year with 4.5 percent market share at 13.88 Gwh, according to the China Automotive Power Battery Industry Innovation Alliance.

Chery’s car sales surged 52.6 percent last year from the year before to 1.88 million units, ranking third in China after BYD and Changan Automobile, according to the Wuhu-headquartered company’s latest sales data.